Audit Partner License in Malaysia

If you had been working in the audit or tax or liquidator in Malaysia for more than 3 years and you gotten your MIA membership, you might be considering to join as one of the top managements (by investing money into the firm, where you'll calculate yourself the breakeven point, yes we all do that) and wish to put your glamorous signatory on the financial report like all the proud partners and you wish to obtain Audit Partner License in Malaysia, then this is the post you should be reading.....

Approval and Licence Renewal of Auditor / Company Liquidator

INDEX
1. What are the requirements to become an auditor?
2. What are the requirements to become a company liquidator?
3. How long is the waiting period for a particular candidate before being called for an interview?
4. Who are the interview panel and what are the aspects that are tested during the interview session?
5. What action should be taken if the candidate gets through the interview?
6. When should Form C be submitted to renew the auditor / company liquidator approval?
7. What action should be taken if the auditor and company liquidator approval period has lapsed?
8. Will tax approval also be given automatically when renewing the auditor’s approval?
9. How much is the total payment for renewing approval as auditor / company liquidator? What is the mode of payment? Can payment be made by cash or by using personal cheque?

1. What are the requirements to become an auditor?

The requirements to become an auditor;

A person must have approval which is recognised in Schedule 1 of the Accountant Act 1967

A member of the Malaysia Institute of Accountants (MIA) holding the status of Accredited Accountant Possess practising certificate from MIA

Has sufficient experience in auditing work in public accountant firms which is for a period of 3 years after becoming an MIA member. Candidates who have left their auditing career for so long are required to have at least 3 years of audit experience continously within the period of 4 years applying as auditor and;

Candidate is obliged to attend the Public Practice Program organised by MIA.

2. What are the requirements to become a company liquidator?

The requirements to be an auditor;

Obtained approval as auditor under the Companies Act for at least 1 year and

Have experience in the company liquidation field for at least 2 years

3. How long is the waiting period for a particular candidate before being called for an interview?

1 month – 3 months

4. Who are the interview panel and what are the aspects that are tested during the interview session?

The interview panel consists of:
Deputy Accountant General (Corporate) – Chairman
Representative of the Companies Commission of Malaysia (SSM)
Representative of the Malaysian Institute of Accountants (MIA)
Representative of the Securities Commission of Malaysia (SC)
Representative of the Central Bank of Malaysia (BNM)
Representative of the Insolvency Department of Malaysia (JIM) – if it involves company liquidator

Aspects that are tested
- SSM – Companies Act, 1965
- MIA – MIA By Laws, taxation, auditing, FRS and ISRC
- SC – Securities Industry aspect and capital market
- BNM – Banking and financial aspect
- JIM – Liquidation aspect

5. What action should be taken if the candidate gets through the interview?

5.1 Auditor Approval: The candidate is required to submit to the AGD the following:- Copy of provision letter of firm number issued by the Companies Commissioner of Malaysia. Copy of Form 5 of the Companies Act 1965 which is certified by the Companies Commissioner of Malaysia Approval payment of RM100.00 in the form of a cross cheque / money order under the name of ACCOUNTANT GENERAL OF MALAYSIA; and Certified copy of identification card.

5.2 Company liquidator approval Approval payment of RM50.00 in the form of a cross cheque / money order under the name of ACCOUNTANT GENERAL of MALAYSIA; and Certified copy of identification card.

6. When should Form C be submitted to renew the auditor / company liquidator approval?

3 months before the end of the previous approval.

7. What action should be taken if the auditor and company liquidator approval period has lapsed? 

The auditor and company liquidator will need to renew the approval within the period of one year from the last date of the previous approval renewal. Throughout the said period, they should not act as auditors and are not allowed to sign any audit report. If the auditor and company liquidator fail to renew the said approval within the period of one year, they will need to re-sit the said interview by submitting a new application (Form A).

8. Will tax approval also be given automatically when renewing the auditor’s approval?

No. Starting from 1 January 2006, tax approvals and auditor approval renewals are separate. All applications in relation to auditors and company liquidators should be done to the Accountant General’s Department of Malaysia, whereas applications in relation to tax agents should be done to the Tax Analysis Division, Ministry of Finance.

9. How much is the total payment for renewing approval as auditor / company liquidator? What is the mode of payment? Can payment be made by cash or by using personal cheque?

Payment for auditor approval renewal is RM100 whereas company liquidator is RM500. Payment should be done to the ACCOUNTANT GENERAL of MALAYSIA using company cheque, postal order, money order or bank draft. Payment by CASH or PERSONAL CHEQUE is not accepted.


Voila! That's how you obtain Audit Partner License in Malaysia! Best of Luck!!

Source: http://portal.anm.gov.my/


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P7 Audit Oversight Board

Audit Oversight Board (AOB) has revokes registration of auditors for the first time!

The revocation is under section 31Q(1)(a)(B) of the SCMA 1993 for failure to remain fit and proper to audit public interest entities.

Wong Weng Foo & Co (Wong Weng Foo and Abdul Halim Husin were found to have failed to comply with auditing standards in the engagement performance of two public listed entities.

The auditors also failed to ensure that the person who audits the financial statement of a public listed entity on behalf of the audit firm is appropriately qualified, sufficiently trained and competent.

大马证监会(SC)首次援引1993年证监会法令，撤消一家会计楼的审计注册! 
SC今天在一项文告中指出，被撤消审计注册的会计楼是WONG WENG FOO & CO。

该会计楼的主要合伙人WONG WENG FOO及另一位合伙人Abdul Halim Husin 的审计注册也同样被撤消。 

WONG WENG FOO & CO在去年6月也曾被SC罚款1万令吉，及在12个月内不能招收新的审计生意。

在我国的1993年证监会法令下，所有欲审计上市公司账目的会计楼，皆须向SC注册。 SC文告补充说，WONG WENG FOO会计楼在审计2家上市公司的账目时，没有遵守审计准则，此外，该会计楼也没有诚实地执行审计任务。 

SC说，这是该会首次援引法令撤消一家会计楼的审计注册。



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Top 30 Audit Firms in 2015

Here's the list of top 30 audit firms in 2015 surveyed by AccountancyAge.

We have these audit firms in 2015
(1) PwC - Ian Powel
(2) Deloitte - David Sproul
(3) KPMG - Smon Collins
(4) EY - Steve Varley
(5) Grant Thornton - Sacha Romanovitch
(6) BDO - Simon Michaels
(7) Baker Tilly - Laurence Longe
(8) Smith and Williamson - David Cobb and Kevin Stopps
(9) Mazars - Phil Verity

(10) Moore Stephens - Simon Gallagher

(11) PKF - Jeremy Bowler

(12) Saffery Champness

(13) Haines Watts Group
(14) Crowe Clark Whitehill
(15) UHY Hacker Young Group
(16) Begbies Traynor Group
(17) MHA Maclntyre Hudson
(18) Kingston Smith
(19) Wilkins Kennedy

* Moore Stephens and Chantrey Vellacott completed a merger on 1 May 2015

**These are also the top 10 firms in Malaysia 2015 such as PwC, Deloitte, KPMG, EY, SJ Grant Thornton, BDO, Crowe Horwath, Mazars, Baker Tilly Monteiro Heng, PKF, UHY

Where does your audit firm ranked at??

For full list download at
http://www.accountancyage.com/digital_assets/9042/2015_top_50_+_50_v8.pdf

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Top 30 Audit firms in 2010

Happy Chinese New Year and Happy Holiday to all my readers :)

Recent survey done regarding the ranking of accounting firms, the below table shows their revenue in 2011.

Ranking Firm 2011 (2010) % change
1 PwC £909m (£893m) +1.8%

2 Deloitte £652m (£628m) +3.8%

3 KPMG £456m (£458m) -2.56%

4 Ernst & Young £444m (£403m) +10.2%

5 Grant Thornton UK £134.4m (£135.5m) -0.8%

6 BDO £91.1m (£91.7m) -0.7%

7 Baker Tilly £84m (£94m) -10.7%

8 Mazars £70m (£68.9m) +1.6%

9 RSM Tenon Group £70m (£52.7m) +32.8%

10 Moore Stephens UK £60.6m (£61.1m) -0.8%

11 PKF £57.8m (£59m) -2%

12 Crowe Clark Whitehill £30.6m (£28.3m) +8.1%

13 Haines Watts Group £29.2m (£26.6m) +9.8%

14 Kingston Smith £22.7m (£23.4m) -3%

15 UHY Hacker Young Group £22.4m (£22.2m) +1%

Top 30 Audit firms in 2015:
http://tarcafa.blogspot.com/2015/10/top-30-audit-firms-in-2015.html


Source: AccountingLive

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Top 30 Audit firms in 2011

Here's the list of top 30 audit firms in 2011 surveyed by AccountancyAge.

We have these audit firms in 2011
(1) PwC
(2) Deloitte
(3) KPMG
(4) Ernst & Young
(5) Grant Thornton
(6) BDO
(7) RSM
(8) Baker Tilly

Top 30 Audit firms in 2015:
http://tarcafa.blogspot.com/2015/10/top-30-audit-firms-in-2015.html

Where does your audit firm ranked at?

source via "Top 50 +50 Firms 2011" in AccountancyAge

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Crowe Horwath the 5th largest Accounting Firm

Crowe Horwath, Malaysia's fifth largest accounting firm, has increased its offices in the country by 4 to 12 locations with the merger of Hii & Lee, together with Kenny Chong of Tong & Chong Partners.

More details:-
(1) Hii & Lee, one of the leading accounting firms in Sarawak has operations in four major cities and towns in the state, namely Miri, Bintulu, Sibu and Kuching.

(2) Tong & Chong Partners has office in Sarawak.

The merger will see Crowe Horwath being established as one of the top firms in Sarawak with global resources and strategic competencies in audit, tax and advisory to serve Malaysian clients with national, regional and global needs.

During the ceremony, Chief Minister Tan Sri Abdul Taib Mahmud's speech saying "Firms that are in full compliance with the ISQC-1 and passes the scrutiny of the Malaysian Audit Oversight Board will certainly establish themselves as premium firms that the business community can confidently engage to provide competent professional services."

Source:-
1)TheStar
2)Business Times
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External Auditor vs Internal Auditor

External Auditor
They exist to provide assurance to the shareholders and stakeholders (such as government) that the annual accounts are free from material error. The primary role of external auditors is to merely express an opinion on whether an entity's financial statements.

The external auditor ensure the financial statements are true and fair to represent the organisation's actual position and not to detect fraud. So do not confuse with fraud detection.

If they come across any fraud related information, it is their responsibility to bring it to the management's attention and consider withdrawing from the engagement if management does not take appropriate actions.

Normally, external auditors review the entity's information technology control procedures also known as audit through the system. Thus, Sarbanes-Oxley Act (SOX) imposes requirements for auditors' evaluation of internal controls and financial reporting.

Internal Auditor
Internal Auditor role is to provide the board of management assurance that the internal controls are in place to manage the risks faced or will be faced by the organisation.

The scope of internal auditing within an organisation is very broad and usually they involved in providing reasonable assurance regarding effectiveness and efficiency of operations, the reliability of financial reporting, deterring and investigating fraud, safeguarding assets, and compliance with laws and regulations.

After the audit activities, the internal auditor will prepare a report regarding on their findings. They will use the " 5 C's "
which are

1. Condition: What is the particular problem identified?
2. Criteria: What is the standard that was not met? The standard may be a company policy or other benchmark.
3. Cause: Why did the problem occur?
4. Consequence: What is the risk/negative outcome (or opportunity foregone) because of the finding?
5. Corrective action: What should management do about the finding? What have they agreed to do and by when?

The recommendations in the report will help the organisation to serve better to meet their visions and goals.

Source:-
1) External Audit
2) Internal Audit


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How to become a MIA member

It is crucial information for all Malaysian students who had taken accountancy field. Becoming a member of MIA probably is the ultimate goal for many Malaysian students who are undergoing professional papers or for those graduated student currently working at competitive public practice accounting firm.

However , MIA is stand for "Malaysian Institute of Accountant". As a member you will be enjoying a lot of benefits such as license to practice as a professional accountant in business or having the license as an approved auditor..... Of course there is another benefit which we will discuss it later on.....

One thing that we need to be aware of is that MIA do not recognise all of the accounting degree courses especially college level qualification such as advance diploma. Furthermore, when it comes to the process of applying MIA, you do need all the prescribe document MUST be certified true by either a MIA member, a Commissioner of Oaths, a member of parliament or a justice of peace. So now you know it might be coming handy when you know a lot of people along the way when you're in audit firm =)

Let's make it simple that most of the accounting students have the mind set that, after graduated from any universities and work in audit firm for 3 years probably will get recognised by MIA. The answer is "NOT NECESSARY"......

As abovementioned clearly that MIA will only recognise certain universities degree or professional qualifications such as ACCA, CPA, ICAEW, CIMA and etc..... However, MIA do provide their own qualifying examination for those who seek for alternative way to become a MIA member.....

Remember that 3 years working experience are still applicable.... But which industry will you go into?? Is there any restriction, or is it necessary to work at audit firm?? That we will talk about it next post...

For more detail on how to become a member of MIA or list of recorgnise degree courses by MIA kindly click on HERE

Credit:
Chris Choi

Related posts:-
1) MIA Requirements
2) Climb the Salary Ladder
3) ACCA Exam Techniques
4) Audit Partner License in Malaysia

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Business And Finance Hot Jobs

Business and Finance

Accountants and Auditors: $67,430
Accountants and auditors examine, analyze, interpret, and prepare accounting records and can work in a variety of settings. The anticipated employment growth indicates that each year 49,750 jobs will be available, with a 30 percent increase in total positions.
Financial Examiners: $70,930
Financial examiners ensure and enforce compliance with laws and regulations pertaining to financial, securities, and real estate transactions. With increased awareness of fraud and the need for regulatory compliance, financial examiners are set for an estimated 41 percent increase in total employment, with over 38,000 positions by 2018.

Personal Financial Advisors: $68,200
Personal financial advisors assist clients by determining and preparing to meet each client's financial goals, including investment strategies and retirement planning. This field can expect to see a 30 percent increase in employment, with over 60,000 positions being created in the next eight years.

General and Operations Managers: $91,570
General and operations managers are responsible for planning, directing, and coordinating the operations of public and private companies. While the employment growth is expected to be low, the yearly outlook is good, providing 50,220 job openings.

Management Analysts: $84,650
Management analysts study, evaluate, and implement procedures and policies to help management perform efficiently and effectively. Because management analysts can help companies operate more efficiently (and therefore become more cost effective), this position is in demand and should see a 24 percent increase in employment, with 30,650 job openings.

[Via Yahoo!]

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Climb The Salary Ladder

Career #1: Marketing Research Analyst
Starting Salary: $38,431*
Potential Salary: $88,761**

Marketing research analysts help companies figure out how people think and use their knowledge to boost sales. If you have an inquiring mind, this just might be the job for you.

How To Climb The Salary Ladder

1. Start by earning a bachelor's degree. Business, marketing, and consumer behavior programs can give you the knowledge necessary to take those first crucial steps up the ladder, according the U.S. Bureau of Labor Statistics (BLS).

2. Gain experience assisting marketing supervisors and show how great you are at collaborating with others. This will help lead you to independent research projects, where the increased job responsibilities could bring increased salary potential.

3. Once you've established yourself as an experienced marketing research analyst, additional degree work, such as a master's degree, or certification from the Marketing Research Association, can help you advance to even higher paying jobs in the field. Supervisory and teaching positions are among the most well-paid analyst positions to set your sights on.

----------------------------------------------------

Career #3: Financial Analyst
Starting Salary: $35,474
Potential Salary: $100,293

Businesses and individuals rely on financial analysts to guide them along the path of sound investment decisions. If you're looking to enter a field that offers increased financial rewards throughout your career, this is the job for you.

How To Climb The Salary Ladder

1. Get your foot in the door with an entry-level position by earning a bachelor's degree. Applicable areas of study include accounting/finance, business, statistics, and economics.

2. To climb up the career ladder, look into certifications. A Chartered Financial Analyst (CFA) designation, sponsored by the CFA Institute, helps analysts who want to specialize in certain areas, such as risk management.

3. If you want to reach the upper salary levels of this position, you will need to get promoted into a position where you're responsible for larger or more important products. Consider supervising teams of analysts or becoming a portfolio/fund manager.

--------------------------------------------


Career #5: Computer Systems Analyst
Starting Salary: $42,079
Potential Salary: $125,759

Businesses utilize analysts to direct and troubleshoot their computer and information technology (IT) systems. They also might either design new computer systems or develop ways to improve and expand existing systems.

How To Climb The Salary Ladder

1. Employers generally prefer candidates with a bachelor's degree in a technical field like computer science, information science, applied mathematics, or engineering.

2. Once you've broken into the field, show you can keep up with computer technology - and position yourself for promotions - by taking additional training courses provided by your employer, outside vendors, and schools.

3. As a lead analyst, your experience and leadership skills can put you in line for a promotion to information systems manager or an executive position, such as chief information officer. Six-figure salaries are not uncommon at this point in your career.


Via Yahoo!
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MIA Requirements

What are the requirements to become a chartered accountant of MIA?

Any person wishing to apply for membership into MIA as a Chartered Accountant needs to have one of the following qualifications recognised by the Institute:

i) Have passed any of the final examination specified in Part 1 of the First Schedule of the Accountants Act, 1967; or
ii) Be a member of any of the recognised bodies specified in Part II of the First Schedule of the Accountants Act, 1967; or
iii) Be eligible to sit for and has passed the Malaysian Institute of Accountants Qualifying Examination (QE).

Unless a person does not possess a qualification recognised under Part 1 and Part II of the First Schedule to the Act, the MIA QE provides an alternative pathway for admission to become a MIA member.

In addition, applicants would need to gain 3 years of practical working experience in the service of chartered accountant or in a government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organisation.

Local Universities that are recognised by MIA:-
(a) the final examination of the University of Malaya for the Diploma Perakaunan (Diploma in Accounting);
(b) the final examination of the University of Malaya for the Ijazah Sarjana Muda Perakaunan (Degree of Bachelor of Accounting);
(c) the final examination of the Universiti Kebangsaan Malaysia for the Ijazah Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(d) the final examination of the MARA Institute of Technology for the Diploma Lanjutan Perakaunan (Advanced Diploma in Accountancy);
(e) the final examination of the Universiti Teknologi MARA for the Ijazah Sarjana Muda Perakaunan (Degree of Bachelor of Accounting);
(f) the final examination of the Universiti Utara Malaysia for the Ijazah Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(g) the final examination of the Universiti Pertanian Malaysia for the Ijazah Bacelor Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(h) the final examination of the Universiti Putra Malaysia for the Ijazah Bacelor Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(i) the final examination of the Universiti Islam Antarabangsa for the Ijazah Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(j) the final examination of the Universiti Sains Malaysia for the Ijazah Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));
(k) the final examination of the Universiti Utara Malaysia for the Degree of Bachelor of Accounting (Honours)(Information System),
(l) the final examination of the Universiti Tenaga Nasional for the Degree of Bachelor of Accounting (Honours), the academic programme for which first commenced from the academic year 2002/2003 onwards;
(m) the final examination of the Universiti Multimedia for the Degree of Bachelor of Accounting (Honours), the academic programme for which first commenced from the academic year 2002/2003 onwards;
(n) the final examination of the Kolej Universiti Sains dan Teknologi Malaysia for the Degree of Bachelor of Accounting (Honours);
(o) the final examination of the Universiti Malaysia Sabah for the Degree of Bachelor of Accounting (Honours).
[Via]
1. MIA 1st Schedule

Professional Bodies recognised by MIA:-
(a) Malaysian Association of Certified Public Accountants (MACPA);
(b) Institute of Chartered Accountants of Scotland (ICAS);
(c) Institute of Chartered Accountants in England and Wales (ICAEW);
(d) Institute of Chartered Accountants in Ireland (ICAI);
(e) Association of Chartered Certified Accountants (ACCA);
(f) Institute of Chartered Accountants in Australia (ICAA);
(g) Australian Society of Certified Practising Accountants (ASCPA);
(h) New Zealand Chartered Accountants (NZSA);
(i) Canadian Institute of Chartered Accountants (ICAC);
(j) Institute of Chartered Accountants of India (ICAI); and
(k) Chartered Institute of Management Accountants (CIMA).
[via]
2. MIA 1st schedule Part 2

3. Audit Partner License in Malaysia



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Biggest Investment Fraud in Wall Street History (2009)

I believe you all have heard of Bernard Madoff's auditor, David Friehling, age 49, is found guilty to many fraud charges on 5th of November 2009 and David has been auditing Madoff's account for 17 years (1992 to 2009).

The total amount of fraud is US$ 65 billions, the biggest investment fraud in Wall Street history!!

David Friehling told the US judge that he had no idea about the swindler's multibillion-dollar Ponzi scheme because he did not (never) contacted investors and never acted as a feeder to investors. Besides that, he as an auditor did not conduct any independent auditiing or verification of financial statements or tax returns provided by clients (ie. Madoff).

At any time we as the auditor should not fully trust upon the client, always practise scrutinity and have a questioning mind at all times!

Thus David is guilty in securites fraud, investment adviser fraud, making false statements to the US securities and Exchange Commission and breaking tax laws.

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Auditors face the biggest crackdown since Enron

Within the 10 years since the Enron collapse, the auditors are now getting back their way for fat fees, the Financial Reporting Council has warned the largest firms of auditors (especially the Big Four: PwC, KPMG, Deloitte and Ernst & Young) that they should not be doing internal audit work for clients whose accounts they sign off in the annual statutory external audit.

Recently the FRC, the regulator of Britain's accountants, appears to be pointing finger at KPMG as there might have a breaching of ethical standards upon getting new audit client, Rentokil Initial.

Auditors should not be facing serious conflict of interest while auditing the client. By offering advice on or running client internal audit services will be marked as 'extended assurance services'. This extended assurance services is should be avoided if possible because auditors supposedly to have independent when verifying a company's financial reports. But when auditors are auditing their own work, that is not showing independent!

The FRC is warning firms its Auditing Practices Board arm and the disciplinary body, the Public Oversight Board, are looking at a clampdown on ethical guidelines.
The APB is consulting on whether internal audit engagements or 'similarly constructed packages of services' comply with the principles of its ethical standards rule book.

The issue has come to a head after KPMG won a contract with Rentokil by promoting a new audit package which provided some services which would normally have been undertaken by Rentokil employees in the internal audit function. Such a package is banned in the US.

After news of the Rentokil arrangement broke in the summer KPMG's head of audit Oliver Tant boasted he had received 'phenomenal' interest from companies looking for 'extended assurance'.

The issue of accountants using the audit to win a client who they can then milk for huge fees for additional work was raised by MPs on the Treasury Select Committee as part of their investigation of the banking crisis.

Industry figures show auditors still earn another 70% of their audit billings from additional work for clients despite the Enron clampdown on such relationships.
Pre-Enron, auditors on average earned twice as much in non-audit fees than from the audit.

Full written Article via Pass Magazine
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