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PRESS CLIPPING PUBLICATION Oriental Daily SECTION Business DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA ldquoImproving Corporate Governance in Malaysian Capital
Markets ndash The Role of the Audit Committeerdquo
廢除季度財報如同開倒車
（吉隆坡 11 日訊）證券監督委員會（SC）審查監督委員會執行主席聶莫哈默指出廢除季度報告制
度改為半年制報告是一項開倒車的舉動他指出季度業績報告是投資者得悉公司財務狀況的管
道若廢除季度業績報告投資者將無法獲得適時的資訊
早前證券監督委員會針對是否廢除上市公司季度業績報告轉為半年提呈一次財務報告的形式徵求公
眾意見部分人士認為這可以緩和會計部門準備有關報告的壓力不過也有反對的聲音
聶莫哈默是在出席大馬會計師公會（MICPA）與澳州特許會計公會（ICAA）舉辦的《提升大馬資本市
場企業治理》座談會後發表有關的意見
另外他指出企業將內部審查工作外包至稽查公司進行並非一項好的策略他建議各企業應當投入
更多資金建立自身的內部稽查部門
目前有 80的公司並非通過公司內部稽查師或董事準備財務報表而是將相關職務外包至稽查公司
代勞如此一來稽查師將失去其獨立性也可能降低有關公司帳目的透明度而公司的財務報表素質
亦會深受影響
「目前企業面臨的挑戰是如何提升稽查師的技能以及財務功能」
提升內部稽查部門
現今企業面臨的挑戰包括如何讓財務報表發揮功能讓企業注入更多的資金提升報告的素質讓符合
資格的人負責相關職務並作出明確的抉擇以及作出可達到目標的抉擇
為了讓內部稽查師符合資格基本上一家公司需在財務部注入更多的資金讓該部門可發揮完善的功
能同時培訓更多符合資格的人才執行相關業務
針對這一點稽查委員會需關注的事項有財務報告的結構和系統是否符合會計標準企業風險的報告
是否具有妥當的控制主要的會計制度是否通過正式審核和正確的實施
同時企業亦需繳付稽查師合理的費用並非為了節省成本而將相關費用降至最低至於稽查委員會方
面委員會主席亦需尋求稽查師的回應以提升財務管理團隊的素質和職員間的合作與能力
PRESS CLIPPING PUBLICATION Bernama SECTION Business DATE August 11 2011 (Thursday) TITLE Companies Should Srengthen Management Finance
Teams
August 11 2011
Companies Should Strengthen Management Finance Teams Kuala Lumpur Aug 11 (Bernama) ndash Companies should invest more to strengthen the management finance teams to ensure competency thus helping in the production of good financial reports Executive chairman of Securities Commission Malaysia Audit Oversight Board Nik Mohd Hasyudeen Yusoff said it was important to have good financial reports produced on a timely basis to make the company more transparent while helping the board make decisions ldquoThe financial report made by audit committee will reflect the true companyrsquos financial performance thus it will attract more investors who would demand more information an increasingly shorter time framerdquo he said Nik Mohd Hasyudeen said this in his keynote address at the forum on ldquoImproving Corporate Governance in the Malaysian Capital Market ndash The Role of the Audit Committeerdquo here today The forum organized by the Institute of Chartered Accountants in Australia and Malaysian Institute of Certified Public Accountants aims to enhance the quality of governance in the Malaysian capital market He said as the value of an independent audit was driven by the independence of the auditors an audit committee should ensure the firm appointed by the company was independent and able to provide impartial opinion ldquoThe auditors have the resources expertise and experience to perform the audit effectively including considering their audit methodology and the strength of their networkrdquo he said Nik Mohd Hasyudeen said the integrity of financial reporting would significantly be influenced by the integrity and values of the members the audit committee --Bernama
KERATAN AKHBAR PENERBITAN Bernama TARIKH Ogos 11 2011 (Thursday) TAJUK Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
廢除季度財報如同開倒車
（吉隆坡 11 日訊）證券監督委員會（SC）審查監督委員會執行主席聶莫哈默指出廢除季度報告制
度改為半年制報告是一項開倒車的舉動他指出季度業績報告是投資者得悉公司財務狀況的管
道若廢除季度業績報告投資者將無法獲得適時的資訊
早前證券監督委員會針對是否廢除上市公司季度業績報告轉為半年提呈一次財務報告的形式徵求公
眾意見部分人士認為這可以緩和會計部門準備有關報告的壓力不過也有反對的聲音
聶莫哈默是在出席大馬會計師公會（MICPA）與澳州特許會計公會（ICAA）舉辦的《提升大馬資本市
場企業治理》座談會後發表有關的意見
另外他指出企業將內部審查工作外包至稽查公司進行並非一項好的策略他建議各企業應當投入
更多資金建立自身的內部稽查部門
目前有 80的公司並非通過公司內部稽查師或董事準備財務報表而是將相關職務外包至稽查公司
代勞如此一來稽查師將失去其獨立性也可能降低有關公司帳目的透明度而公司的財務報表素質
亦會深受影響
「目前企業面臨的挑戰是如何提升稽查師的技能以及財務功能」
提升內部稽查部門
現今企業面臨的挑戰包括如何讓財務報表發揮功能讓企業注入更多的資金提升報告的素質讓符合
資格的人負責相關職務並作出明確的抉擇以及作出可達到目標的抉擇
為了讓內部稽查師符合資格基本上一家公司需在財務部注入更多的資金讓該部門可發揮完善的功
能同時培訓更多符合資格的人才執行相關業務
針對這一點稽查委員會需關注的事項有財務報告的結構和系統是否符合會計標準企業風險的報告
是否具有妥當的控制主要的會計制度是否通過正式審核和正確的實施
同時企業亦需繳付稽查師合理的費用並非為了節省成本而將相關費用降至最低至於稽查委員會方
面委員會主席亦需尋求稽查師的回應以提升財務管理團隊的素質和職員間的合作與能力
PRESS CLIPPING PUBLICATION Bernama SECTION Business DATE August 11 2011 (Thursday) TITLE Companies Should Srengthen Management Finance
Teams
August 11 2011
Companies Should Strengthen Management Finance Teams Kuala Lumpur Aug 11 (Bernama) ndash Companies should invest more to strengthen the management finance teams to ensure competency thus helping in the production of good financial reports Executive chairman of Securities Commission Malaysia Audit Oversight Board Nik Mohd Hasyudeen Yusoff said it was important to have good financial reports produced on a timely basis to make the company more transparent while helping the board make decisions ldquoThe financial report made by audit committee will reflect the true companyrsquos financial performance thus it will attract more investors who would demand more information an increasingly shorter time framerdquo he said Nik Mohd Hasyudeen said this in his keynote address at the forum on ldquoImproving Corporate Governance in the Malaysian Capital Market ndash The Role of the Audit Committeerdquo here today The forum organized by the Institute of Chartered Accountants in Australia and Malaysian Institute of Certified Public Accountants aims to enhance the quality of governance in the Malaysian capital market He said as the value of an independent audit was driven by the independence of the auditors an audit committee should ensure the firm appointed by the company was independent and able to provide impartial opinion ldquoThe auditors have the resources expertise and experience to perform the audit effectively including considering their audit methodology and the strength of their networkrdquo he said Nik Mohd Hasyudeen said the integrity of financial reporting would significantly be influenced by the integrity and values of the members the audit committee --Bernama
KERATAN AKHBAR PENERBITAN Bernama TARIKH Ogos 11 2011 (Thursday) TAJUK Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
PRESS CLIPPING PUBLICATION Bernama SECTION Business DATE August 11 2011 (Thursday) TITLE Companies Should Srengthen Management Finance
Teams
August 11 2011
Companies Should Strengthen Management Finance Teams Kuala Lumpur Aug 11 (Bernama) ndash Companies should invest more to strengthen the management finance teams to ensure competency thus helping in the production of good financial reports Executive chairman of Securities Commission Malaysia Audit Oversight Board Nik Mohd Hasyudeen Yusoff said it was important to have good financial reports produced on a timely basis to make the company more transparent while helping the board make decisions ldquoThe financial report made by audit committee will reflect the true companyrsquos financial performance thus it will attract more investors who would demand more information an increasingly shorter time framerdquo he said Nik Mohd Hasyudeen said this in his keynote address at the forum on ldquoImproving Corporate Governance in the Malaysian Capital Market ndash The Role of the Audit Committeerdquo here today The forum organized by the Institute of Chartered Accountants in Australia and Malaysian Institute of Certified Public Accountants aims to enhance the quality of governance in the Malaysian capital market He said as the value of an independent audit was driven by the independence of the auditors an audit committee should ensure the firm appointed by the company was independent and able to provide impartial opinion ldquoThe auditors have the resources expertise and experience to perform the audit effectively including considering their audit methodology and the strength of their networkrdquo he said Nik Mohd Hasyudeen said the integrity of financial reporting would significantly be influenced by the integrity and values of the members the audit committee --Bernama
KERATAN AKHBAR PENERBITAN Bernama TARIKH Ogos 11 2011 (Thursday) TAJUK Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
August 11 2011
Companies Should Strengthen Management Finance Teams Kuala Lumpur Aug 11 (Bernama) ndash Companies should invest more to strengthen the management finance teams to ensure competency thus helping in the production of good financial reports Executive chairman of Securities Commission Malaysia Audit Oversight Board Nik Mohd Hasyudeen Yusoff said it was important to have good financial reports produced on a timely basis to make the company more transparent while helping the board make decisions ldquoThe financial report made by audit committee will reflect the true companyrsquos financial performance thus it will attract more investors who would demand more information an increasingly shorter time framerdquo he said Nik Mohd Hasyudeen said this in his keynote address at the forum on ldquoImproving Corporate Governance in the Malaysian Capital Market ndash The Role of the Audit Committeerdquo here today The forum organized by the Institute of Chartered Accountants in Australia and Malaysian Institute of Certified Public Accountants aims to enhance the quality of governance in the Malaysian capital market He said as the value of an independent audit was driven by the independence of the auditors an audit committee should ensure the firm appointed by the company was independent and able to provide impartial opinion ldquoThe auditors have the resources expertise and experience to perform the audit effectively including considering their audit methodology and the strength of their networkrdquo he said Nik Mohd Hasyudeen said the integrity of financial reporting would significantly be influenced by the integrity and values of the members the audit committee --Bernama
KERATAN AKHBAR PENERBITAN Bernama TARIKH Ogos 11 2011 (Thursday) TAJUK Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
KERATAN AKHBAR PENERBITAN Bernama TARIKH Ogos 11 2011 (Thursday) TAJUK Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
Ogos 11 2011
Syarikat Harus Perkukuh Pasukan Kewangan Pengurusan KUALA LUMPUR 11 Ogos (Bernama) ndash Syarikat ndashsyarikat harus melabur lebih banyak dalam pasukan kewangan pengurusan untuk memastikan kecekapan sekali gus membantu dalam penghasilan laporan kewangan yang baik Pengerusi eksekutif Lembaga Pemantauan Audit Suruhanjaya Sekuriti Malaysia Nik Mohd Hasyudeen Yusoff berkata menghasilkan laporan kewangan yang baik dan dikeluarkan pada masa yang ditetapkan adalah penting untuk menjadikan sesebuah syarikat itu lebih telus di samping membantu lembaga membuat keputusan ldquoLaporan kewangan yang disediakan oleh sesebuah jawatankuasa audit akan mencerminkan prestasi kewangan sebenar syarikat dan dengan demikian ia akan menarik lebih banyak pelabur yang mahukan lebih banyak maklumat dalam kerangka masa yang semakin singkatrdquo tegasnya Nik Mohd Hasyudeen berkata demikian dalam ucaptamanya pada forum bertajuk ldquoMenambah Baik Tadbir Urus Korporat dalam Pasaran Modal Malaysia ndash Peranan Jawatankuasa Auditrdquo di sini Khamis Forum anjuran Institut Akauntan Berkanun di Australia dan Institut Akauntan Awam Bertauliah Malaysia itu bertujuan meningkatkan kualiti tadbir urus dalam pasaran modal Malaysia --Bernama
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
PRESS CLIPPING PUBLICATION The Sun SECTION SunBiz PAGE 20 DATE August 12 2011 (Friday) TITLE Increasing Role of Audit Committee
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
PRESS CLIPPING PUBLICATION New Straits Times SECTION Business Times PAGE B1 amp B2 DATE August 12 2011 (Friday) TITLE The Big Four Audit Blues Institutional Investor Not Worried By Trend
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
By Adeline Paul Raj adelinenstpcommy
KUALA LUMPUR An increasing number of Malaysias public-lisshyted companies (PLCsJ have moved away from the Big Four audit firms in recent year~ and gone for smaller ones
Industry players said the trend which has become more proshynounced recently is evident by the Big Fours dwindling market shares here
The Big Four refers to the four largest international firms namely Deloitte Touche Tohmatsu PricewaterhouseshyCoopers (PwCJ Ernst amp Young
n
The Big Four audit blues and KPMG
Were looking at that as a trend Nik Mohd Hasyudeen Yusoff executive chairman of the Audit Oversight Board (AOBl told Business Times
Lee Tuck Heng a partner at PwC Malaysia said the trend started taking shape in the last three to five years but seems more pronounced now
If you look at the market share of the Big Four big eight firms its dwindling and it is the next
tier of audit urms that are taking up some of this market share said Lee who has over 30 years of audit experience at home and abroad
It is understood that PwCs market share of PLCs here has fallen to just under 8 per cent while that of Ernst amp Young has dropped to some 26 per cent
Crowe Horwarth has probably been the biggest non-Big Four audit firm to gain from this trend
Industry players cited fees as
one 0( the key reasons driving PLCs to mid-lier and smaller acshycounting firms
Audit f1rms especially the bigshygel ones have of late been seeshyking higher fees to match the risks they take on Audit firms in Malaysia are among the lowest paid in the region and they often cite the low fees as a major chalshylenge for them to be able to secure and retain adequate talent
Its driven by a few things One obviously is in terms of fees
Two mayhe its also because of the tighter regulatory regime with the advent of the IOB the flrms are increasingly reassessshying in terms of the risk equation and perhaps 1lnding that some clients may not give them the apshypropriate returns for the services theyre giving said Lee
Some boards of PLCs dont beshylieve in paying more for services and so that could result in an agreeable separation between
bullbull TURN TO 82 COL 5
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
FHIDAY AUGUST 12 2011
shy
Institutional investors not worried by trend FROM B1
thrm alld their auditors he said Qu(stions have b(cn raisrd on
wh()th(~r this trcllc towards smallrr firms is good for the loshycal cilpita I market especially with some PLCs choosing to go with smaller audit firms only beshyrau e they cost less
ik said the A013 will extend its audit inspection to mid-tier and smaller firms this year to ensure that high standards of audit quality are maintained
VVhether it moves towards smaller ones or larger ones the focus should be on quality and credibility because that is what we need in the capital market he remarked
The AOI3 was set up in April last year to oversee audit firms of PLCs Last year it conducted regular inspections on six major audit firms including the Big Four
Meanwhile institutional inshyvestors like Aberdeen Asset Management Sdn Bhd say they arent worried by the trend
think its good becauseit releases the grip of monopoly onshyth (Big) Four to do everything There is a tendency to get como placent when you think youreshy(naturally) going to get re-apshypointed think smaller flrms because of their size may tend to work a bit harder to get reshycognised said its head of equitshyies Abdul Jalil Rasheed who helps manage 05$25 billion (RM76 billion) of assets
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
PRESS CLIPPING PUBLICATION Sin Chew Daily SECTION Business PAGE 11 DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum ldquoImproving Corporate Governance in Malaysian Capital Markets ndash The Role of the Audit Committeerdquo
~~~PI~lJlLJtth
lllill~bullbullIIDi+IU ~~~~M111f~ft1faltJtt~0iS]
~lrJlsi bullbull ~EYsectj~JmDJJjJJJMitt1J
(ESOS) ~)~~QioJx10iS]iJtffialtJJlsLsLlhmiddot
~~rW~ (ABERDEEN ASSET MGMT) iiI ~~~~~tL1f~~~~~~ampxt~sL
EY~~pound~altJ~mreg~~sL1f-B~~
JjJJJMit~xt~~m~0iS]altJ~~sL~~~
t~
~~tt~~iS]~altJ~pound~~altJ~sL
reg1fSaltJbullbull~R~reg~~~~
nt~ f~d~7mfftJjttf)i~~ln~)ffi~
~sectAt1JOA1fg~bull fmlltS tJffiI7~7iI~if~iHiP11Ji (ICCA)
-amp1bWif0ttiltViP11Ji (MICPA) ~jjaltJshy~~Wi~m~t9~xt0iS]1fS~~
BltJW1~B1 tm~1lsecttJ bull It$a~m5plusmnAff~px~
~mM11tt~0iS] bullbullSEYsect~1f~
$iffi j] BltJ~ DJ ~~f-t BMiJ170BltJ1fg~~
DJll0iS]Affij]middot llt9~ 1fmEYsectnJiJJJ0iS]iEM~1f- -~
iL~11A~aAIfaltJt9~iampffibull iEm-1fM1fiEiL 1iiJ1f~tL
1f l-A 11 Jlsi iPJ EY ~iHJH~ - W JlIJB1rB]xt0iS]ill~sect jilRiX BiE00~Owm~11 AA1JO~miE
Czitt sect Jjl ampxJll1l altJJlsiI$shyMiEiL~~m~~~xt0iS]m~~m~
mmiddot ~AM11~sim$iEiLWMm~~
w~11m~~~~~M11j~W~~
tJl altJ 10] ~ bull -00altJtt~0iS] bullbull$Bill~~si
bullbull~~~~B$Aft$altJm~~~~~
~~~sibullbullbull~reg1l~~-milialtJ RE~middot ~m~m~~ bullbullS~~~0iS]~~
~~11iE~ill~WL~~~sectillmW
1WiJlIJ1f~5L ~ -reg0iS]~1f-mr~DJ 11 ~~~~11~mxt0iS]altJM~~mreg
x10 is] fF tJ fftili bull ~- mm altJi~~~~~H
mpound~0iS] bullbullaltJAA~1fEY~R~~
~1fIAA~~altJ~~middot itt liZ 0 is] Iin~ g~ ~ DJ altJ plusmnJj f ~ B1 ~~ fiR l-A 11
amp5EB1~~ ~F ~~fIJ jtjtiEfsectAt~F ~~ If~
~~~0iS]iEm~~~~~~~~tJ~
jj
___________ -- - ____---shy
ag sect ~middotit~~M 11 00 rrkjff7tffiX ffi~ 11 I~ i~ jsectJ (1lt] Ylrc sectj Ht -i- ~ ~ yH1i1 ~
sect~ ~ ViP fh N ill Tffi ~ nioJ 0 j5J t ill ifHr ~ Jff1 bull~lpound
~ JX m~ 11-PtJiU~ i)i tt~
9~ ~ 0iS]mlCsectj$~9Hr~m~ViPHE-- ~~~ 11j~0 P] a~iiiE ~jsect-shyg~ yen~
tp itt11 fsectAm ~ ViP altJ jfj If +~ d=18 cJ fm m~ ~) tW WJ altJ ~j JJ[ ~ yenIJI~ ~~ sect 1~ $ B1f~ m~w jltJ9lsLiI JJ fl~ tJ ill
~ ~
1~ ill M11 0 jsectJ nltJ t ill ta -a- EY sect f~ tJ 1~ ii ffi f~ 2aa 0 is] ~~
illBllt~ffjt~~~m~~~middotTffi0iS]1ftam
~~tJ-amiddot~~0iS]AaltJBillmiddot
f~ i)i bull ~ Jjl~50 iiYllC sectj X1lJT~i
it~illAplusmn~~~xt-MBltJt9~~~~amp
reg~ftL~~B~~Jff1 bull w~tt~0iS]m~~~i~~sect
JjlW$m~WWiit~m~xt~s~~~~
~~ fj1~imiddot
~JJtIEJBj m1t~Wfiij (AUDIT OVERSIGHT BOARD) tJt11~ffiIlUtnltnlt~ITigtt ~1iftl1f1ff
~0iS]~m~ffimm~~M~EYsect~BltJ~
IMl sectti5~psLl~1t~J9Jsi~~~~~ m~~DJ
~EY~W0iS]~~1f~~si~BltJm~~~
bull bull_~ bull ~~ ~ bull 1- bull ~- t
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
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PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
PRESS CLIPPING PUBLICATION The Malaysian Reserve (All Business Daily) SECTION News DATE August 12 2011 (Friday) TITLE ICAA ndash MICPA Forum Call for PLCs to lsquoinvestrsquo in high quality finance
function
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
Call 0 Cs to vesti high qualitJ_finance functio
Lack of quality human resources sees management passing the bUCK to external auditors
by ANUJA RAVENDRAN
A BULK of public-listed companies (PLCs) especially the ones below the radar of regular equity invesshytors are passing the responsibility of preparing their company acshycounts to external auditors raising the concern that this may impede auditors independence
Because of the lack of quality human resources within the fishy
~ nance function of the PLCs the management abdicates and farms out the reporting function to the external auditors said former Mashylaysian Institute of Accountants (MIA) president Tan Sri Dr Abdul Samad Alias
Dr Abdul Samad who will asshysume the chairmanship of Pershy
badanan Insurans Deposit Malayshysia next week said he has faith in the quality of boards and the peoshyple who occupy the finance funcshytions of some top 200 PLCs on the Bursa Malaysia Bursas main marshyket alone has 860 companies
Industry executives say the PLCs board members must ensure that the companies they are responsible for have a high quality finance function to avoid shifting the reshysponsibility of accmmts preparashytion to external auditors
Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff said the PLCs must invest
bull see P4 COLl
Ownership of accounts I Iis fundamental issue i
FROMPl PLCs enough to ensure that the fishynance function is competent
There is a need for audit committees to pay attention to whether the financial reshyporting function is operated by qualified professionals who keep themselves updatshyed with the developments in (inancial reporting They Ieed to be supported by apshypropriate financial reporting systems and effective intershynal control he said at a foshyrum entitled The Role of the Audit Committee in Kuala Lumpur yesterday
The forum was organised by the Institute of Chartered Acshycountants in Australia and Mashylaysian Institute of Certified Public Accountants
Abdul Samad said the ownshyership of accounts is a fundashymental issue that needs to be addressed in order to avoid tarnishing the capital market Nik Mohd Hasyudeen said it is important to ensure that the companies finance officials are able to prepare a filII set of fishynancial statements including notes to the accounts in comshypliance with accounting standshy
i ards and other regulations I
The issue of poor quality fi- i nance function within the r PLCs surfaced more than once I at the forum as fellow panelist I UEM Group Bhd managing di- f rector chief executive officer I Datu~ Izzaddin Mohd Idris said tpat in his experience he had come across companies depending on auditors for acshycounts preparation
He said the inability to have I financial information ready on I a timely basis for board meet- ings is a common problem en- I countered by directors it also I stems from the lack of quality within the finance function of I companies
Investment in good quality i human capital is very imporshytant he said
Nik Mohd Hasyudeen said other areas that audit commitshytees must pay attention to inshyclude whether the financial reshyporting architecture and systems employed are approshypriate given the industry the company is involved in busishyness models adopted funding structures complexity of opershyations and requirements of acshycounting standards
Nlk Mohd Hasyu~een
says it is Important to ensure that the companies finance officials are able to prepare afull set of financial statements
