notes to the financial statements - The Institute of Internal Auditors

INNOVATE TO VALUE ADD
MILESTONE 2014
AUDIT COMMITTEE CONFERENCE
ANNUAL GENERAL MEETING 2014
BURSA BREAKFAST TALK
CTICE)
(ENHANCING INTERNAL AUDIT PRA
GRADUATION & CORPORATE
AWARD CEREMONY
CORPORATE FRAUD CONFERENCE
MEMBERS NETWORKING
MOU EXCHANGE
(IIA MALAYSIA - TALENTCORP)
MOU EXCHANGE
(IIA MALAYSIA - UNITAR)
SHARIAH AUDIT CONFERENCE
ALL STAR CONFERENCE
THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA
CONTENTS
Page
VISION, MISSION, OBJECTIVES AND MOTTO
04
NOTICE OF ANNUAL GENERAL MEETING
05
PROFILE OF BOARD OF GOVERNORS
07
MEETINGS AND ATTENDANCES
10
THE SECRETARIAT
11
PRESIDENT’S REPORT
13
CORPORATE GOVERNANCE STATEMENT
16
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
20
AUDIT COMMITTEE REPORT
22
REPORTS OF THE MAIN COMMITTEES
PROFESSIONAL DEVELOPMENT COMMITTEE (PDC) REPORT
RESEARCH AND TECHNICAL ADVISORY COMMITTEE (RTAC) REPORT
PROFESSIONAL SERVICES COMMITTEE (PSC) REPORT
CERTIFICATION AND ACADEMIC RELATIONS COMMITTEE (CARC) REPORT
24
25
26
27
REPORTS AND FINANCIAL STATEMENTS
28
PAST PRESIDENTS, HONORARY & FELLOW MEMBERS
53
THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA
VISION
Internal audit professionals recognised as indispensable to effecve governance, risk management and control.
MISSION
To provide dynamic leadership for the profession of internal auding. Acvies in support of this mission will include, but will not be
limited to:
• Advocang and promong the value that internal audit professionals add to their organisaons.
• Providing comprehensive professional, educaonal and developmental opportunies, standards and other professional pracce
guidance and cerficaon programmes.
• Researching, disseminang, and promong knowledge concerning internal auding and its appropriate role in control, risk management,
and governance to praconers and stakeholders.
• Educang praconers and other relevant audiences on best pracces in internal auding.
• Bringing together internal auditors to share informaon and experiences.
OBJECTIVES
• To be the recognised voice for the internal audit profession;
• To develop and sustain the internal audit profession in Malaysia through appropriate infrastructure, coordinaon, support and
communicaon; and
• To provide exceponal service to members of IIA Malaysia.
MOTTO: “PROGRESS THROUGH SHARING”
The moo of IIA Malaysia is ‘Progress through Sharing’. This marks our commitment to bring the profession to the next level of
professionalism and recognion. We are dedicated towards helping praconers grow their knowledge and skills by sharing new
trends, latest internal audit techniques, regulatory and statutory requirements and the emerging issues affecng the profession.
04
NOTICE OF ANNUAL GENERAL MEETING
(Company No. 309740-D)
Company Limited By Guarantee
Incorporated in Malaysia
THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA
NOTICE IS HEREBY GIVEN THAT THE TWENTIETH (20TH) ANNUAL GENERAL MEETING OF THE INSTITUTE OF INTERNAL
AUDITORS MALAYSIA WILL BE HELD AT CONCORDE HOTEL KUALA LUMPUR, 160 JALAN SULTAN ISMAIL, 55100 KUALA LUMPUR,
ON SATURDAY, 30 MAY 2014 AT 10.00 AM. TO TRANSACT THE FOLLOWING BUSINESS:-
AS ORDINARY BUSINESS:1. To receive the audited financial Statements for the financial year ended 31 December 2014 of the Instute together with
the Governors' and Auditors' Report thereon.
2. To elect members to the Board of Governors :a.) The Governors who rere by rotaon and eligible for re-elecon pursuant to Arcle 18 of the Instute’s Arcles
of Associaon are:1. Dr Nurmazilah Dato’ Mahzan
2. Lucy Wong Kam Yang
3. Zahran Bin Tasliman
4. Alan Chang Kong Chong
5. Nik Hasnan Nik Abd Kadir
Lucy Wong Kam Yang, Alan Chang Kong Chong and Nik Hasnan Nik Abd Kadir had offered themselves for re-elecon whilst
Dr. Nurmazilah Dato' Mahzan and Zahran Bin Tasliman do not wish to seek re-elecon.
b.) Elect new members nominated to the Board of Governors for the year 2015/2016.
3. To re-appoint Messrs. Baker Tilly Monteiro Heng as the Instute’s auditors and to authorise the Board of Governors to fix
their remuneraon.
4. To transact any other business for which due noce has been given in accordance with the Companies Act, 1965 and the
Instute’s Arcles of Associaon.
By Order of the Board
WONG WAI FOONG (MAICSA 7001358)
THAM WAI YING (MAICSA 7016123)
Company Secretaries
Kuala Lumpur
5 May 2015
NOTES:1. Only Fellow Members and Professional Members of the Instute are entled to vote at the Annual General Meeng. Associate Members, Audit
Commiee Members, Honorary Members, Student Members and Nominees of Corporate Members may aend the meeng but shall not have
vong rights.
2. Any member/members wishing to bring before the Annual General Meeng of the Instute any business other than the ordinary business shall
give noce in wring thereof in accordance with Secon 151 of the Companies Act, 1965.
05
PROFILE OF BOARD OF GOVERNORS
Front (le to right) : Ranjit Singh A/L Taram Singh, Dr. Nurmazilah Dato' Mahzan, Philip Sash Rao,
Lucy Wong Kam Yang, Mohd Khaidzir Bin Shahari
Back (le to right) : Alan Chang Kong Chong, Chrisne Ong May Ee, David Leong @ Leong Sze Khiong,
Nik Hasnan Nik Abd Kadir, Zainal Akbar Bin S.K. Md. Abdul Kader,
Nickson Choo Wei Sin, Zahran Bin Tasliman
Absent
: Dato' Shabaruddin Bin Ibrahim, Devanesan A/L J.A. Evanson,
Suhailah Bin Mohamed Abdulla
PROFILE OF BOARD OF GOVERNORS
2014/2015
PRESIDENT
PHILIP SATISH RAO, CMIIA, CA(M), CPA (M), CPA(Aust.), is currently
a Partner with Risk Services pracce in Ernst & Young (EY) Malaysia.
In his 25 years with EY, he has served on various external and
internal audits, risk management and corporate governance, and
corporate finance engagements apart from the experience gained
through secondments both overseas and locally. Some of his
notable engagements include projects concerning corporate
governance, internal audit and enterprise risk management for
some large global MNCs. He is also the Programme Director for EY
Entrepreneur of the Year Award Programme in Malaysia. He is a
regular speaker and trainer on topics relang to risk management,
corporate governance and internal audit locally and as well as
internaonally. He was a member of the 2012/2013 Task force for
the review for PLCs in respect of the Statement on Internal Control
in Malaysia.
IMMEDIATE PAST PRESIDENT
RANJIT SINGH A/L TARAM SINGH, MBA(UK), CIA, CRMA, CMIIA,
CA(M), CPA(M), is the Group Managing Director of Columbus
Advisory Sdn Bhd, a company specialising in governance, risk
management, internal audit and human resources services. He
holds a Masters Degree in Business Administraon and is a
member of the MIA, MICPA, Australian CPA and Associaon of
Cerfied Fraud Examiners. Ranjit was the President of the IIA
Malaysia for 2013/14 term. He is a commiee member of the
Global IIA’s Professional Issue Commiee and has been recently
appointed as the Secretary of Asian Confederaon of Instute of
Internal Auditors (ACIIA). He was the Chairman for the Panel of
Judges for Risk Manager of the Year 2010 Award and an
Adjudicator for the NACRA awards for the past 5 years.
VICE PRESIDENT
DATO' SHABARUDDIN BIN IBRAHIM, BCom (Tasmania) FCA
(Australia & New Zealand), CPA (Malaysia) CA (Malaysia) CFIIA
(Malaysia), is Group CEO of Pesaka Ventures Sdn Bhd. He is a
member of IIA Malaysia from 1991 to 1995 and Vice President
from 1993 to 1995. He has over 30 years of working experience
mostly in management posions in mulnaonal corporaon,
government linked companies, public listed companies and
private sector with over 10 years of experience in auding with
KPMG and as PETRONAS Group Chief Internal Auditor. Currently,
he is Chairman to Audit Commiee of Teknology Tenaga Perlis
Consorum Sdn Bhd, an IPP with 650 MW capacity. He was
awarded with DSPJ (Perlis) and AMN (Malaysia)
VICE PRESIDENT
LUCY WONG KAM YANG, CIA, CMIIA, CRMA, FCMA, CGMA,
CA(M), MBA(Australia), is the Group Chief Internal Auditor of
MMC Corporaon Berhad. Other than providing internal auding
services to the MMC Group of Companies, she also provides
guidance and assistance on the seng up of Internal Audit
Departments, standardisaon and harmonisaon of internal audit
pracces, and advice on governance, risk management and
control maers. She has over 20 years of working experience in
internal auding. Prior to joining MMC Corporaon Berhad, she
has served several companies in operaons and also providing
internal audit services. The companies are Projek Lebuhraya
Utara-Selatan Berhad, Metramac Corporaon Sdn Bhd, Metacorp
Berhad, HBN Management Services Sdn Bhd (Renong Berhad) and
UEM Group Management Sdn Bhd and Tenaga Nasional Berhad.
She is currently the Chairman of the Professional Services
Commiee in IIA Malaysia. She has served as the Honorary
Secretary and commiee member of the Cerficaon and
Academic Relaons Commiee from 2012 to 2013 in IIA Malaysia.
She is also a Public Sector Commiee member at IIA Global,
whose mission is to provide authoritave posions and thought
leadership on public sector auding maers and to promote the
interest of the IIA’s public sector audit members.
HONORARY SECRETARY
MOHD KHAIDZIR BIN SHAHARI, CIA, CMIIA, CA (M), is currently
a Partner in KPMG. He has 20 years experience in internal audit,
risk and governance advisory including 2 years experience as a
Chief Internal Audit of a financial instuon prior to joining
KPMG. His clients include listed organisaons, mulnaonals
corporaons, government linked organisaon and private
enterprises. He has been a member of the IIA Malaysia since
1997 and was elected as a Board of Governor in 2010. He is
currently the Honorary Secretary of the Board of Governors, and
had served the Board as the Treasurer in 2010. Currently, he is
the Chairman of Research and Technical Commiee since 2013.
HONORARY TREASURER
DR NURMAZILAH DATO' MAHZAN, PhD, CIA, CMIIA, CA(M),
CPA(M), is currently the Director of UM Graduate Business
School cum Deputy Dean (postgraduate) at the Faculty of
Business and Accountancy. She is also the coordinator of Internal
Audit Educaon Partnership (IAEP) for University Malaya, the
first university in Malaysia recognized as an IAEP school. She
commenced her career with Arthur Andersen in 1993. She later
joined KUB Malaysia Berhad as Group Accounts Manager. Her
corporate experience covers various industries including
property development and construcon, banking, unit trusts,
trading and manufacturing. In 1999, she le the corporate world
for the academia where she embarked on research projects in
the areas of auding, financial reporng and corporate
governance. She obtained her PhD from University of
Birmingham United Kingdom. On a professional level, she served
as a Member of the Malaysian Accounng Standards Board
(MASB) from 2008 to 2013. She was elected council member of
Malaysian Instute of Cerfied Public Accountant (MICPA) and
the appointed council member of Malaysian Instute of
Accountants. She has been serving as a member of Board of
Governors for Instute of Internal Auditors (IIA) Malaysia since
2011. Recently, she was appointed as a Global Academic Relaon
Commiee member of IIA Global.
07
PROFILE OF BOARD OF GOVERNORS
2014/2015
GOVERNORS
ALAN CHANG KONG CHONG, CIA, CFSA, CPA (Australia), Cerfied
Credit Professional (Asian Instute of Chartered Bankers, ÄICB),
B. Economics (Sydney University) is the Chief Internal Auditor of
Hong Leong Bank Berhad and as well as the financial services
enes under the Hong Leong Financial Group. Prior to that, he
was the Senior Vice President and headed the Group Internal
Audit of RHB Bank Bhd. He has over 22 years of internal audit
experience specialising in credit, treasury, retail and operaonal
audit of commercial banks. He is the Deputy Chairman of IIA’s
Professional Development Commiee, a posion he held since
2012. He is the current Chairman of the Chief Internal Audit
Networking Group (CIANG) consisng of 37 parcipang Chief
Internal Auditors of financial instuons from commercial,
Islamic and investment banks from both local banks and foreign
branches/subsidiaries of internaonal banks. CIANG is a formal
networking group under AICB which focuses on internal audit
maers affecng the Malaysian financial services industry.
CHRISTINE ONG MAY EE, CMIIA, CIA, CRMA, CA(M), FCA (Australia
& New Zealand), is the Senior Group General Manager-Internal
Audit of IGB Corporaon Berhad. She has more than 25 years of
experience in internal audit, external audit, accounng and finance
in industries such as banking and finance, hospitality, property and
construcon. Chrisne was an Instute Director on the Board of
Directors of the Instute of Internal Auditors Inc. represenng IIA
Malaysia for the term 2013-2015 and has been reappointed as
the Director-at-large for the term 2015-2017. She is also a member
of the Global Advocacy Commiee under IIA Global since 2013. She
has served in various capacies in the commiees of IIA Malaysia
such as the Professional Development Commiee 2008-2011,
Professional Services Commiee for the term 2011-2013 and
Cerficaon and Academic Relaons Commiee 2013-2014.
DAVID LEONG SZE KHIONG @ LEONG SZE KHIONG, BCA(NZ),
CA(NZ), CA(M), ACIB, MBA (Henley, UK), CIA. CMIIA, served 24
years of his 34 years with one of the largest internaonal banks,
holding leadership roles in operaons, trade finance, markeng,
credit management, risk management, strategic planning,
Sarbanes-Oxley and finally in internal audit, from 1980 to 2005.
Known for turning things around and as a change agent, he
rewrote the lending guidelines of the bank which stopped the
red ink flowing in the bank’s P &L in 1999. He was the strategic
planner in the subsequent turnaround strategy in 2000-2001
and appointed the Chief Internal Auditor in 2001. During his
employment, David also passed the Associate Chartered
Instute of Bankers (UK) examinaons and was top student for
the Henley MBA (UK) in 1997. He passed the IIA’s CIA
examinaons in 2003. Always keen to improve, David became
the Chief Internal Auditor, of a large middle-eastern Islamic
financial services firm from 2005 to 2011 and of Bank Islam
Malaysia Bhd between 2012 and 2014. David has vast
experience and presents issues clearly, holiscally as well as
bringing a unique strategic dimension to internal auding. He is
an expert in applying the new COSO 17 Principles Integrated
Framework (2013) in audits and is on the examiners commiee
of the Asian Instute of Chartered Bankers (AICB).
08
DEVANESAN A/L J.A. EVANSON, FCCA, LLB(Hons), CFIIA, CA(M),
is a past president of the Instute of Internal Auditors Malaysia
and the Malaysian Advisory Commiee of the ACCA. He is also a
past council member of the Malaysian Instute of Accountants.
He has served Bursa Malaysia for 18 years in various capacies
including Head, Group Internal Audit and Risk Management,
Chief Regulatory Officer and Chief Market Operaons Officer.
NICKSON CHOO WEI SIN, CISA, CFE, CMIIA, was formerly a
Director with Crowe Horwath Governance Sdn Bhd (member of
Crowe Horwath Internaonal), a provider of governance, risk and
compliance ("GRC") services in Malaysia. He has over 20 years of
experience and his diverse professional experience includes
performing operaonal audits, informaon technology (IT) audits,
corporate governance advisory, operaonal risk and control
reviews, fraud invesgaons and business process improvement
reviews of public-listed and mulnaonal companies operang in
various industries including manufacturing, plantaons, trading,
hotels, construcon, financial instuons and investment holding.
NIK HASNAN NIK ABD KADIR, BSc (Hon), CIA, CMIIA, is the
former Group Chief Internal Auditor (GCIA) of Axiata Group. He
had held the GCIA posion since the Axiata Group incepon in
2008 unl 31st December 2014. Prior to assuming the posion
in Axiata Group, he had been the Chief internal Auditor of
Celcom (M) Bhd since 2005. Prior to that, he was the Financial
Controller, Asia Pacific Service Centre, for Shell Global Soluons.
He served the Shell Group in various capacies including being a
member of Shell Global Audit Network and a Secretary of the
Audit Commiee of Shell Asia Pacific and Middle East
Accounng Transacon Services Company. He is currently
working on some projects and managing his personal
investments. He graduated with a Bachelor of Science (Hon) in
Accounng & Financial Analysis from Warwick University, United
Kingdom. He is a Cerfied Internal Auditor and a Chartered
Member of the IIA Malaysia.
SUHAILAH BINTI MOHAMED ABDULLA, CIA, CCSA, CPA(M),
Chartered Accountant, began her career with the external audit
pracce of KPMG and subsequently joined the internal audit unit
of ASTRO Malaysia in 2000. She re-joined KPMG in 2005, and
over her 8-year career at KPMG’s Advisory pracce, she led a
variety of internal audit, risk management and quality assurance
engagements for companies involved in a variety of industries.
In January 2012, she took on the posion of Head of Group
Internal Audit of Fraser & Neave Holding Bhd (FNHB) and has
overall responsibility of its internal audit funcon in Malaysia
and Thailand. She has been a member of IIA Malaysia since 2000
and had served in its sub-commiees between 2006 and 2011.
PROFILE OF BOARD OF GOVERNORS
2013/2014
ZAHRAN BIN TASLIMAN, CIA, CCSA, CMIIA, CA(M), is currently the
CAE of QSR Brands (M) Holdings Sdn Bhd, a company within Johor
Corporaon (JCorp) Group which operates the KFC and Pizza Hut
chain of restaurants in Malaysia and four other countries. He
joined JCorp in 1994 as an accountant in Finance Department. He
served as an accountant in the Capital Services Division of JCorp
in 1995 and was exposed to unit trust, asset management,
stockbroker and corporate finance operaons. He later headed
the Division’s IA funcon in 1997. He was then seconded to the
Division’s operaon in Jakarta, Indonesia as President Director of
PT Arya Shinta Sekuritas in 1999 for two years. In November 1999,
he passed the CIA exam. He joined Group Corporate Assurance of
JCorp in 2001. Amongst the projects he was involved in was
IA services engagement, i.e. advisory on corporate governance
review and risk management process implementaon in PLCs
within the JCorp Group. He is also in acve service with the
Malaysian Army reserve force (rank: Captain).
ZAINAL AKBAR BIN S K MD ABDUL KADER, CMIIA, CRMA,
ASA (Aust) is the Vice President, Internal Audit and Secretary
of Board Audit Commiee at Malaysian Biotechnology
Corporaon, a government-linked enty fully owned by Ministry
of Finance Inc., and a professional agency under Ministry of
Science, Technology and Innovaon tasked with Naonal
Biotechnology Policy to develop the biotechnology industry in
Malaysia. He holds a Bachelor of Commerce (Accounng) degree
from Curn University of Technology, Australia. In 2007, he had
successfully completed the presgious ‘The Job of Chief
Execuve’ programme co-organised by IMD Switzerland /
Singapore Instute of Management and subsequently in the
year 2013 had completed ‘The Bullet Proof ® Manager Training
Series’ at Crestcom Internaonal, Colorado. He carries 17 years
of professional experience in external and internal auding,
group accounng, strategic financial management and
enterprise risk management. Prior to his current posion, he
was the Group Manager, Accounts at TDM Berhad (a main board
listed company) where he headed the group accounng and
treasury funcons. He was also the past representave of
Federaon of Public Listed Companies providing advice on
adopon towards new Internaonal Financial Reporng
Standards (IFRS) while represenng on various IFRS discussion
groups at Malaysian Accounng Standard Board.
09
MEETING & ATTENDANCES
2014/2015
BOARD OF GOVERNORS 2014/2015
1) The Board of Governors (BOG) aendance are as follows:
Philip Sash Rao, President
Dato’ Shabaruddin Bin Ibrahim, Vice President
Lucy Wong Kam Yang, Vice President
Mohd Khaidzir Bin Shahari, Honorary Secretary
Dr Nurmazilah Dato' Mahzan, Honorary Treasurer
Ranjit Singh A/L Taram Singh, Immediate Past President
Alan Chang Kong Chong
Chrisne Ong May Ee
David Leong @ Leong Sze Khiong
Devanesan Evanson
Nickson Choo Wei Sin
Nik Hasnan Nik Abd Kadir
Suhailah Bin Mohamed Abdulla
Zahran Bin Tasliman
Zainal Akbar Bin S. K. Md Abdul Kader
BOG Meeng Aendance
7/7
5/7
7/7
4/7
5/7
7/7
7/7
6/7
5/7
5/7
5/7
7/7
5/7
6/7
6/7
COMMITTEE MEETINGS
2) The following members served on the various Commiees of the Instute:
Meeng Aendance
Professional Development Commiee (PDC)
Chrisne Ong May Ee
Alan Chang Kong Chong
Suhailah Bin Mohamed Abdulla
Eddie Leng Siew Kheen
Frank Chin Suan Yong
4/4
3/4
4/4
3/4
2/4
Professional Services Commiee (PSC)
Lucy Wong Kam Yang
Zainal Akbar Bin S. K. Md Abdul Kader
Dr Suresh Kannan
Sky Chan Kin Kwan
Asmawa Kamarudin
Chow Hoe Tong
3/3
3/3
2/3
1/3
2/3
3/3
Cerficaon and Academic Relaons Commiee (CARC)
Dr Nurmazilah Dato' Mahzan
Zahran Bin Tasliman
Dr Zakiah Muhammaddun Mohamed
Lim Hooi Hoon
Shreeram Nadarajah
Amos Law Chih Chien
Haikel Ismail
3/3
3/3
2/3
1/3
2/3
2/3
2/3
Research & Technical Advisory Commiee (RTAC)
Mohd Khaidzir Bin Shahari
Alina Osman
Nickson Choo Wei Sin
David Leong @ Leong Sze Khiong
Renganathan Narasingham
Wong Chiang Meng
Zalily Mohamed Zaman Khan
10
4/4
3/4
2/3
2/3
4/4
3/4
2/4
THE SECRETARIAT
NAME
DEPARTMENT
Execuve Director
NUR HAYATI BINTI BAHARUDDIN
Senior Manager
ZAIMAH BINTI ISMAIL
LEE FOOK SUN
SIVAMALAR A/P P. THURAISINGAM
MEMBERSHIP AND CERTIFICATION
PROFESSIONAL DEVELPOMENT/FINANCE/CORPORATE SERVICE
QUALITY ASSURANCE AND TECHNICAL
Assistant Manager
SITI ROHANI BINTI UMAR
IRWAN NOOR HADI BIN DAHILI
JENNIFER HOON CHIEW PENG
VINITHA A/P TANIALNATHAN
MEMBERSHIP
PROFESSIONAL DEVELOPMENT
FINANCE / CORPORATE SERVICE
TECHNICAL
Senior Execuve
SITI ARAFAH BINTI ABDUL AZIZ
CERTIFICATION
Execuve
NOR SHAZWANI BINTI MOHAMAD SHAFIEE
NORASYIQAH BINTI ABDUL RAHMAN
JOSIE REBECHI OMILDA
MUHAMMAD FAIZ BIN FAUZI
MUHAMMAD AKMAL HAKIM BIN AKRAM
GOH SYED LEE
RAJA NUR AINA BINTI RAJA MOHAMMAD NOORDIN
NOOR ADIHA BINTI ABU BAKAR
MUHAMMAD NAZIM BIN AB RAHIM
NUR ZUHAIRAH BINTI ZAMBERI
MEMBERSHIP
MEMBERSHIP
PROFESSIONAL DEVELOPMENT
PROFESSIONAL DEVELOPMENT
PROFESSIONAL DEVELOPMENT
FINANCE
CORPORATE SERVICE
TECHNICAL
QUALITY ASSURANCE
CERTIFICATION
Officer
YUSLIZA BINTI MD YUSOF
HAMDANI BIN MOHD SAHIT MASHUD
CORPORATE SERVICE
CORPORATE SERVICE
11
THE SECRETARIAT
Sing row from le to right
: Sivamalar Thuraisingam, Nur Haya Baharuddin, Lee Fook Sun, Zaimah Ismail
Standing first row from le to right : Muhammad Faiz Fauzi, Goh Syed Lee, Yusliza Md Yusof, Nur Zuhairah Zamberi,
Si Arafah Abdul Aziz, Nor Shazwani Mohamad Shafiee, Norasyiqah Abdul Rahman,
Raja Nur Aina Raja Mohammad Noordin, Jennifer Hoon Chiew Peng,
Noor Adiha Abu Bakar, Irwan Noor Hadi Dahili
Standing back row from le to right : Josie Rebechi Omilda, Muhammad Nazim Ab Rahim, Hamdani Sahit Mashud,
Vinitha Tanialnathan, Muhammad Akmal Hakim Akram
PRESIDENT’S REPORT
2014/2015
Dear Respected Members
First and foremost, on behalf of the Board of Governors, let me start by thanking
each and every one of you for your connued support of IIA Malaysia and its
efforts to champion and enhance the internal audit profession in Malaysia.
2014/2015 was a very producve year for IIA Malaysia, and I am pleased to
present this report which highlights some of our achievements and progress. We
commenced the period under review, building on the strategic plan that had been
developed by the Board in early 2014, with focus on enhancing our execuon to
achieve the targets set. We then set out as a team to execute our plan in a
cohesive manner. I am proud to say that with the strategic vision of the current
Board and excellent support of the Secretariat team, in many aspects we have
exceeded expectaons. Some of our achievements include:
PRESIDENT’S REPORT
2014/2015
MEMBERSHIP AND PROFESSIONAL
CERTIFICATION
• Increase in membership to 2,988 members as at 31 December
2014 compared to 2,870 in 2013;
• Seven (7) networking sessions with short talks were held across
the country as the Instute recognises the importance of bringing
members together. Notably, we had Dr. Mervyn King; an icon on
global corporate governance, addressed our members at one of
these sessions.
• The connued increase of candidates sing for the Cerfied
Internal Auditors (CIA) examinaon in the country is reflected
in the total of 376 examinaon parts undertaken in 2014. 27
candidates completed the CIA exam, bringing the total number
of CIAs to 725 as at 31 December 2014. The Instute connues
to acvely promote the new CIA qualificaon through various
public and in-house programmes with a total of 22 previews
being held during the year.
• A total of 8 career talks were conducted at various instuons
of higher learning to garner the interest of the younger generaon
towards the internal audit profession and this is vital in ancipaon
of the increasing demand for professional internal auditors in
the market.
PROFESSIONAL DEVELOPMENT
• A record aendance at the 2014 Naonal Conference themed
“Embracing Change” held in October 2014 where for the first
me in IIA Malaysia’s history we had over 900 parcipants. The
feedback we received on the conference was very encouraging
with parcipants parcularly impressed by the breadth and
depth of the topics covered and calibre of the speakers.
• Increasing interest in the joint Malaysian Instute of Accountants
(MIA)/IIA Malaysia 2014 Audit Commiee Conference where
parcipaon has increased by an average of 50%. The recently
concluded 2015 conference also had a good turnout.
• Workshops and conferences organised by our Professional
Development and Training Department contributed close to
60% of our revenue; with more than 3,000 parcipants having
benefited from these programmes.
ADVOCACY EFFORTS
• IIA Global connues to recognise the efforts and commitment
from our Board of Governors with the appointment to five (5)
posions on the Global Board and Global Commiees. We are
also proud to note that the term for all our Board members on
these commiees has been extended,signifying the strong
contribuon of IIA Malaysia at the internaonal level.
• IIA Malaysia was included as a key parcipant in the Dialogue
with the Chairman of the Securies Commission in June 2014
whereby representaves from IIA Malaysia provided insights
and views on the capital market in Malaysia with focus on aspects
of governance, risk and control.
• IIA Malaysia was invited as one of the parcipants in the Higher
Educaon Minister’s Dialogue with Professional Instutes in
December 2014 whereby inputs and views were obtained from
industry on enhancing the employability of graduates in Malaysia.
The inclusion of IIA Malaysia in such dialogue signifies that the
instute is becoming beer recognise as the voice of internal
auditors in Malaysia.
14
• The Instute is gaining more recognion at the naonal level
for championing and advocang proper governance. IIA
Malaysia has been invited to become a working commiee
member represenng Malaysia at the internaonal level on
draing the ISO standards on An Bribery Management System.
One of our Vice Presidents is working together with the
Malaysian An-Corrupon Agency and Standards Department
of Malaysia on the draing of the standards.
• The Instute was also represented at the Adjudicaon Commiee
which was set up by the Minority Shareholder Watchdog Group
for ASEAN Corporate Governance Transparency Index, Findings
and the Recognion 2014 Award for companies listed on Bursa
Malaysia.
• Signing of a Memorandum of Understanding with UNITAR
Internaonal University was held on 13 October 2014, with the
aim of introducing specialisaon in internal auding in the
Bachelor of Accounng (Hons) programme offered by UNITAR.
• On 17 October 2014, the Instute signed an agreement with
Talent Corporaon Malaysia Berhad (TalentCorp) under its
up-skilling programme called the IIA CIA Talent programme,
which helps to equip graduates with commercially useful skills
and experiences that will enhance their employment
opportunies, in line with the Government’s Economic
Transformaon Programme towards generang a high-income
naon by 2020. Under the programme, the Malaysian Economic
Planning Unit has agreed to provide the funding for the
implementaon of the programme, with IIA Malaysia acng as
the main promoter and driver of the programme.
BRANDING AND PROFILING
• During the period under review IIA Malaysia has had one of its
strongest branding and profiling in the media involving the
coverage of 30 events under several headlines in various media
tles compared to 15 in 2013. On 3 Apr 2015, the Instute was
featured on Awani Astro to discuss the importance of the internal
audit funcon under the GST framework. Inputs and views were
sought on various maers of current interest including those
involving governance, risk and control and is testament of IIA
Malaysia’s role as an authority and thought leader in internal
auding.
• The acquision of two (2) units of office space in Menara Bangkok
Bank @ Berjaya Central Park, Kuala Lumpur with gross floor area
of approximately 4,575 square feet, has been approved by the
Minister of Domesc Trade, Co-Operaves and Consumerism.
As at the date of this report, the units concerned are almost
ready for handover to IIA Malaysia. Moving to this new locaon
is planned for late 2015 and this will become another milestone
in the Instute’s plan to enhance its visibility and brand presence
as well as to provide a more suitable Secretariat locaon to beer
serve our members.
OPERATIONAL MANAGEMENT
AND SECRETARIAT AFFAIRS
• Operaonally, for the financial year ended 31 December 2014,
we have managed the Instute diligently, and are pleased to
record an increase in revenue by 15% with a corresponding 28%
increase in profit before tax compared to 2013.
PRESIDENT’S REPORT
2014/2015
• During the period under review, the Board and Secretariat have
worked cohesively, enhancing various aspects of IIA Malaysia’s
operaons, pung in place a risk management framework which
is monitored periodically, and ensuring adequate resources and
competency levels.
ACKNOWLEDGEMENT
• During the period under review, the Instute had much
collaboraon with regulatory bodies and private organisaons
to promote governance, risk management and control. Some
of the notable events were:
Once again, I extend my gratude to all our members,
professional bodies, regulators, corporaons and all individuals
whose generous support has assisted us in delivering the
Instute’s programs and services. Your dedicaon allows us to
expand our reach and deliver our mission.
- Annual Dialogue with Suruhanjaya Syarikat Malaysia (SSM).
- Sime Darby Audit Convenon on 23 June 2014.
- Breakfast Talk with Audit Commiee Members at Bursa Malaysia
with Dr. Mervyn King as special guest on 13 Aug 2014.
- The Audit General Convenon where the audit community was
introduced to analycs to enhance their professionalism to
improve audit quality was in Dec 2014.
- An exclusive Governance, Risks and Control Day was organised
by UMW Holdings Berhad on 16 April 2015.
• The Instute has proven itself to be a service provider of choice
in Quality Assurance not only locally, but overseas as well.
During the year, it has performed ten (10) engagements including
two (2) covering Hong Kong and an ASEAN country.
The connued success of IIA Malaysia reflects the commitment of
its past and present Board of Governors in keeping the Instute at
the leading edge of the profession and the reless efforts of the
Secretariat staff that have made every iniave a reality.
I strongly believe that together, we can meet the challenges,
facilitate change and earn credibility and respect on behalf of the
internal audit profession, that we truly deserve. The me has come.
Finally, my sincere thanks to the Board of Governors and the
Secretariat team for their energy, passion and drive in making IIA
Malaysia what it is today.
On behalf of the Board,
PHILIP SATISH RAO
CA, CPA (M), CMIIA
PRESIDENT 2014/2015
The annual acvity report of each sub-commiee is enclosed in
the remainder of the Annual Report for your informaon.
MOVING FORWARD
In early 2015, the 2014 Strategic Plan was reviewed. A revised
strategic plan for 2015 to 2020 was drawn up and approved by
the Board with the intenon of taking the Instute to the next
level. The Board and Secretariat team are working hard to
ensure that the strategic plan is successfully implemented.
Among the key aspects of the strategic plan include enhancing
our advocacy efforts, as well as image and posioning as the
voice of the internal audit profession in Malaysia.
Our advocacy efforts will focus on engaging with the regulators
and relevant stakeholders to garner support for the
promulgaon and eventual mandatory applicaon of the IIA
Standards; and hopefully with that mandatory membership in
IIA Malaysia.
With the future in mind, our ongoing engagement with the
instuons of higher learning to promote the profession will
connue. We intend to collaborate with these instuons in
designing degree programmes with the CIA cerficaon
embedded in the course outline.
In terms of image and profiling, we also look forward to the
relocaon of the Secretariat to our new premises in late 2015,
enabling our members to have beer access, apart from
manifesng an enhanced professional and corporate outlook.
We have had much success in 2014/15. However the Board is
not resng on its laurels, and will connue to push harder to
ensure our voice is heard louder and clearer as one of the main
drivers of governance, risk and control in Malaysia.
Under the leadership of our Execuve Director, Puan Nur Haya
Baharuddin, we are looking forward to connuing our journey of
advancing the internal audit profession in a more efficient and
effecve manner.
15
CORPORATE GOVERNANCE STATEMENT
The Board of Governors (“the Board”) has implemented the principles set under the Malaysian Code on Corporate Governance 2012
(“the Code”) as far as they are relevant to the Instute in its commitment to preserving stakeholders’ confidence.
The Governance Framework
Execuve Commiee
Disciplinary Commiee
Board of Governors
Nominaon and
Remuneraon
Commiee
Audit Commiee
Execuve Director
Strategic Alliance
& Stakeholders Commiee
Professional
Development Commiee
Research and Technical
Advisory Commiee
Professional Services
Commiee
Cerficaon and Academic
Relaons Commiee
Membership
Professional Development
and Training
Cerficaon and
Academic Relaons
Quality Assurance
and Technical
Research
Finance and
Administraon
The Guiding Principles of Board Governance
In October 2013, the Board reviewed the organisaonal structure to ensure that the governance policies, pracces and operang
framework are aligned to key corporate governance principles.
Based on the Corporate Governance Principles, the Instute has adhered to the 8 principles that have been put forth.
16
CORPORATE GOVERNANCE STATEMENT
Principle 1:
Establish Clear Roles and Responsibilies
The Board of Governors
The Board is the principal governing body of IIA Malaysia and is
responsible for the overall governance of IIA Malaysia including
providing oversight of the Instute’s financial and organisaonal
maers encompassing policies, business plans, budgets and
targets.
3 Strategic Alliance & Stakeholders Commiee
The Strategic Alliance & Stakeholders Commiee (SASC) comprises
the President, two Vice Presidents and Past President. The SASC is
responsible for the strategic plans and advocacy efforts of the
Instute. In doing so, the following have been reviewed and
undertaken;
- The vision and mission of the Instute;
- The strategic goals and objecves; and
- The acon plans going forward.
Roles and Responsibilies of the Board
The Board has connued to engage key stakeholders such as
regulators, professional bodies, universies and the public sector
as part of its advocacy efforts.
The primary responsibilies of the Board are amongst others,
as follows:
• Review and approve the strategic business plans of the Instute;
4. Professional Development Commiee
• Review the adequacy and integrity of the Instute’s system of
internal controls ; and
The Professional Development Commiee (PDC) comprises three
(3) Governors and two (2) other co-opted members. They have
the responsibility to oversee and review the overall professional
development plans such as the training programmes conducted
through the workshops and the conferences that are planned for
each year. The commiee will also advice on the speakers' fees
so as to ensure that they are comparable with market trends.
• Oversee the conduct of the Instute’s acvies and succession
planning of the Secretariat.
5. Research and Technical Advisory Commiee
• Represent the Instute in major strategic sessions invited by
the regulators, professional bodies or other stakeholders;
• Idenfy and manage the principal risks affecng the Instute;
Board Commiees
While the Board has overall control and management of IIA
Malaysia, it has delegated a range of its responsibilies to its
Commiees. The Commiees operate within clearly defined
terms of reference as follows:
1. Execuve Commiee (EXCO)
The EXCO comprises a President, two (2) Vice Presidents, an
Honorary Secretary and an Honorary Treasurer who amongst the
members of the Board of Governors are elected to the office.
The primary responsibilies of the EXCO are:
• To review operaonal issues with regards to the execuon of
acon plans by the various sub-commiees;
• To recommend or revise guidelines or policies pertaining to the
administraon of the Instute; and
• To review the performance of the Secretariat so as to maintain
a high standard of performance in the daily administraon of
the Instute.
2. Nominaon and Remuneraon Commiee
The Nominaon and Remuneraon Commiee (NRC), comprising
two (2) members, has the responsibility to oversee and review
the overall composion and balance of the Board; review
succession plans; recommend to the Board a compensaon and
remuneraon package for the Execuve Director and staff,
including reviewing policy maers relang to remuneraon and
performance management. The Execuve Director and staff of
the Instute are given key performance indicators which form the
basis of their annual performance appraisal.
Governors do not receive any emolument, bonuses or
rerement benefits. The fees received by Governors due to
training or other services rendered to the Instute in lieu of their
profession are declared under Note 20 of the Notes to the
Financial Statements.
The Research and Technical Advisory Commiee (RTAC)
comprises three (3) Governors and four (4) co-opted members to
oversee the development of the profession and the trend
through the support of research grants accorded to Instuons
of Higher Learning.
The commiee also ensure that arcles which are relevant to the
profession are collated and broadcast to the members through
the issuance of E-Techline and KIT (Keeping In Touch).
6. Professional Services Commiee
The Professional Services Commiee (PSC) comprises two (2)
Governors and four (4) co-opted members. The main objecves
of PSC are as follows:
• To ensure that the services accorded to members are relevant, and
• To create more awareness on the benefits and services of the
Instute,
This is to increase the number of individual, corporate and audit
commiee members and promote the standards of the internal
audit profession.
7. Cerficaon and Academic Relaons Commiee
The Cerficaon and Academic Relaons Commiee (CARC)
comprises two (2) Governors and five (5) co-opted members.
The objecves of CARC are to promote the Cerfied Internal
Auditor (CIA) cerficaon as the only professional qualificaon
for internal auditors, internal audit educaon partnership with
local instuons of higher learning and specialty cerficaon
programmes promoted by the Instute of Internal Auditor (IIA)
as the recognised cerficaon for praconers.
8. Risk Management and Finance Commiee
During the year, the Risk Management and Finance Commiee
(RMFC) was dissolved aer the risk management framework
was set up. Effecvely, the Execuve Commiee has taken over
the monitoring of the risk management acvies and reports to
the Board.
17
CORPORATE GOVERNANCE STATEMENT
Principle 1:
Establish Clear Roles and Responsibilies
(connued)
9. Disciplinary Commiee
The Disciplinary Commiee was formally set up in 2013 to address
disciplinary maers pertaining to member’s conduct. A specific term
of reference was draed and adopted by the Board to ensure the
commiee is independent and has direct reporng to the Board.
10. Audit Commiee
The Audit Commiee of the Instute comprises three (3) members
of whom two (2) are not Board members and one (1) is a Board
member of the Instute. The role of the Commiee is to assist the
Board in fulfilling its fiduciary responsibilies, specifically;
• To deal with the appointment and removal of external
auditors/internal auditors;
• To review the annual financial statements; and
• To review the effecveness of the risk management and internal
control system
Please refer to page 22 for the Audit Commiee report.
2. President and Execuve Director
The roles of the President and the Execuve Director are clearly
defined. There is a clear separaon of roles between them which
allows for beer understanding and distribuon of responsibilies
and accountabilies; facilitates operaonal efficiency and expedites
decision-making.
The Execuve Director is primarily responsible for managing the
day-to-day operaons and is charged with implemenng
operaonal decisions in line with the strategic and long-term
iniaves of the Instute. She aends Board and Board
Commiees meengs; however; she is not a Governor and is not
entled to vote.
The Board had established an accountability matrix for the roles
of the Board, the President and the Execuve Director in
ensuring efficiency and proper checks and balances in deriving
decisions at the strategic and operaonal level.
Principle 4:
Foster Commitment
Board Meengs
The Board of Governors
Since the last AGM held on 17 May 2014, the Board met 7 mes.
The Board reviewed performance reports including analysis of
major issues on professional development, membership services,
academic relaons, professional pracces and financial reports.
The aendance record at Board meengs is provided on page 10.
All Governors have access to the Secretariat of the Instute in
order to fulfil their roles and responsibilies as Governors.
The Board currently comprises fieen (15) Non-Execuve
Independent Directors, termed as Governors. The appointment of
Governors is made at the Annual General Meeng (AGM) in
accordance with the Instute’s Arcles of Associaon. The Board
is chaired by a President.
The Board receives financial and operaonal reports from
Management on a bi-monthly basis, which provide a
comprehensive review and analysis of the business operaons
and financial issues. In addion, minutes of meengs of the
Board and Commiees are tabled and considered by the Board.
Principle 2:
Strengthen Composion
The Board recognises that to be effecve and relevant, Governors
should be fit and proper, including having aributes and criteria
such as relevant internal audit qualificaons, professional
standing with relevant experse in financial, legal, business and
technical fields. The Governors are drawn from diverse
backgrounds and with differing skill sets gained from service in
private sector, public service and regulatory instuons. This
brings depth and diversity in experse and perspecves which
facilitate deliberaon of issues from a wider perspecve.
Principle 3:
Reinforce Independence
1. The Board of Governors
Every three (3) years, the Governors are required, by rotaon, to
offer themselves for re-elecon. At the Annual General Meeng
(“AGM”) on 17 May 2014, new Governors were elected and they
received informaon outlining their dues and responsibilies
in a formal inducon session.
The profiles of all the Governors are detailed on page 7 of this
Annual Report.
The Board is independent of Management and free from
potenal conflict of interests which could impair and materially
affect the exercise of their independent judgment. Each
Governor must disclose any maer which may affect his/her
independence as soon as he/she becomes aware of it.
18
Principle 5:
Uphold Integrity in Financial Reporng
The Execuve Director and the Head of Finance submit annual
management representaon leers to the Board and the
external auditor acknowledging that informaon regarding the
financial statements and non-financial informaon in the Annual
Report, including the risk management framework is true and
fair in accordance with relevant policies and procedures.
Principle 6:
Recognise and Manage Risks
During the year, the Board reviewed and updated the risk profiles
of the Instute. Based on the Enterprise Risk Management
framework, a strategic plan for 5 years have been developed to
ensure that the Instute recognises and address the crical
areas. This is to ensure the sustainability of the Instute in the
near future.
CORPORATE GOVERNANCE STATEMENT
Principle 7:
Ensure Timely and High Quality Disclosure
The EXCO and the Board held scheduled alternate monthly
meengs for the past 12 months. Effecvely, each month, either
the EXCO or the Board will be briefed on the financial status and
acvies of the Instute as prescribed in the annual plan. They
have set the expectaons for the Secretariat, where the
acvies of the Instute are to be reported.
Principle 8:
Strengthen Relaonship between the
Instute and its Members
The Instute is a membership driven enty. Hence, it has
undertaken measures to get connected to the members through
the electronic media. Programmes offered to the members for
their professional development connued to be of high quality
with value for money.
The Board has encouraged the connuous search for quality
service to the members.
19
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
The Statement on Risk Management and Internal Control of the Instute is made voluntarily by the Board in line with its objecve of
leading by example in championing sound governance, risk and internal control pracces.
The Responsibilies of the Board
The Board acknowledges its overall responsibility for the systems
of internal controls in the Instute and as well as reviewing the
adequacy, integrity and effecveness of these systems. In doing
so, the Board has endorsed an enterprise risk management
framework which enables the idenficaon of risks that impact
the Instute. The decision to state its risk appete will determine
the tolerance level for the types of risks that arise in the course of
business.
By embedding the risk management aspect in all the business
acvies via idenfying principal risks and ensure implementaon
of appropriate control measures to manage the risk, the Board
ancipates that a certain level of assurance can be achieved.
The Board is commied to maintain a sound internal control
system for the Instute and to regularly review the adequacy and
integrity of the system that includes the management of
informaon system, compliance with laws, regulaons, rules,
direcves and guidelines. The Secretariat of the Instute is assisng
the Board in the implementaon of policies, procedures and
guidelines on risk management and sound internal control systems.
The Board confirms that the risk management process has been
established to idenfy, evaluate, and manage significant risks to
effecvely migate the risks that may impede the achievement of
business and corporate objecves of the Instute. It should be
noted that an internal control system is designed to manage risks
rather than eliminate them, and can provide only reasonable but
not absolute assurance against any material misstatement or
failure to meet organizaonal objecves.
The review of the risk management and internal control reports
and processes are delegated by the Board to the Audit Commiee.
Management’s Responsibilies
The implementaon of risk management process for the
Instute is the responsibility of the Execuve Director and the
respecve heads of Business/Operaons within the Instute and
overseen by the Execuve Commiee.
• The implementaon and maintenance of the risk management
process.
• The development of a Business Connuity Plan.
• The implementaon of risk management policies to ensure that
effecveness of risk management processes.
• The idenficaon of significant changes to risk or emerging risks
and taking acons as appropriate to communicate to the Audit
Commiee and the Board.
• To idenfy significant changes to risk or emerging risks and
taking acons as appropriate and communicate to the Audit
Commiee and the Board.
The Execuve Director and the Head of Finance also provide
assurance to the board on the risk management and internal
control system of the Instute is operang adequately and
effecvely, in all material aspects, based on the risk management
and internal control system of the Instute.
The Risk Management Process
The development of the enterprise risk management framework
has enabled the Execuve Commiee and the Secretariat to
idenfy and priorise significant risks. The respecve business
and operaons unit heads are required to evaluate the controls to
ascertain their effecveness and efficiency on a regular basis.
20
Issues relang to the operaons of the Instute are highlighted to
the Board during the Board meengs. Further, independent
assurance is provided by the Internal Audit Funcon where the
audit reports are deliberated upon by the Audit Commiee. The
Audit Commiee reviews internal control maers and highlights
significant issues to the Board.
The Internal Audit funcon is outsourced to an independent
consulng firm. The independent consulng firm reports directly
to the Audit Commiee which is independent of the Board. The
primary role of the internal audit is to assure the Board, through
the Audit Commiee, that the systems of internal controls are
funconing as designed. Further details of the Internal Audit
Funcon are set on page 22 in the Audit Commiee Report.
Business connuity management is regarded to be an integral part
of the risk management process in the Instute. In this regard, the
Instute has commenced implementaon of business connuity
plans to minimise business disrupons in the event of potenal
failures of crical IT systems and operaonal processes. The
documentaon of the business connuity plans for the Instute
are in place and these business connuity plans are reviewed and
updated periodically.
The Internal Control Processes
The other key aspects of the internal control process are:• The Board and the Execuve Commiee meet on alternate
months and are updated the acvies of the Instute and discuss
maers raised by the Secretariat. This includes business and
operaonal maers pertaining to potenal risks and control issues.
• The Board has delegated the responsibilies to various commiees
established by the Board to oversee and monitor the respecve
business and operaons acvies.
• Delegaon of authority including authorisaon limits at various
levels within the Execuve Commiee and the Execuve Director
and those requiring the approval of the Board are documented
and designed to ensure accountability and responsibility.
• Internal procedures and policies are communicated to the staff.
The documented policy manuals are regularly reviewed and
revised to meet the changing business and operaonal needs.
• Performance and pro forma reports are provided to the Board
and Execuve Commiee to facilitate review and monitoring of
the financial performance.
• An annual budget which includes the financial and operaonal
targets, capital expenditure proposals and performance indicators
are presented for approval by the Execuve Commiee and the
Board.
• Maintenance of proper accounng records, consistent applicaon
of appropriate accounng policies supported by reasonable and
prudent judgments and esmates; and preparaon of the financial
statements in accordance with the provisions of the Companies
Act 1965, applicable approved accounng standards in Malaysia
and other regulatory provisions.
Some weaknesses in internal control were idenfied for the year
under review but they were not deemed significant. Hence, they
have not been included in this statement, as these weaknesses
have not materially impacted the business operaons of Instute.
Nevertheless, connuous measures have been taken or are being
taken to address these weaknesses.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
The Internal Audit Funcon
The Internal Audit funcon has been outsourced to an internal audit service provider.
On an annual basis, the internal audit service provider will table its audit plan to the Audit Commiee. Based on the plan approved, they
will undertake regular and systemac review of the risk management and internal control processes to provide the Audit Commiee with
sufficient assurance that the systems of internal control are effecve in addressing the risks idenfied.
The audit reports issued during the financial year 2014 did not highlight any material control failure or weakness that would have material
adverse effect on the Instute for the year 2014.
The above statement is made in accordance with the resoluon of the Board dated 30 April 2015.
21
AUDIT COMMITTEE REPORT
The Audit Commiee of the Instute was established by the Board of Governors (“Board”) in 1997.
The objecves of the Audit Commiee are mainly to assist the Board in fulfilling its fiduciary responsibilies, parcularly relang to
business ethics, policies and pracces, financial management and internal control of the Instute.
1. Composion
The Audit Commiee comprises the following three (3) members,
two (2) of whom are not Board members whilst the remaining
one (1) is a Board member of the Instute:
• Wong Yew Sen, CFIIA (Chairman);
• Lee Min On, CMIIA; and
• Devanesan Evanson, CFIIA, FCCA, LLB (Hons), MIA, ACCA.
2. Aendance of the meengs
During the financial year and up to the date of the annual report,
the Audit Commiee held three (3) meengs and details of the
Audit Commiee members' aendance are as follows:
Name
Wong Yew Sen
Lee Min On
Devaneson A/L J.A. Evanson
Designaon
Chairman
Member
Member
Aendance
3/3
3/3
2/3
3. Terms of reference
a. Composion
The Board shall elect an Audit Commiee comprising not less
than three (3) members where the majority of them shall not be
members of the Board.
The members of the Audit Commiee shall elect a Chairman
from amongst themselves. All members of the Audit Commiee,
including the Chairman, will hold office unless nofied otherwise
by the Board.
b. Objecves
The primary objecves of the Audit Commiee are as follows:
i. To provide assistance to the Board in fulfilling its fiduciary
responsibilies, parcularly relang to business ethics, policies
and pracces, financial management and internal control;
ii. To provide greater emphasis on the audit funcon by increasing
the objecvity and independence of external and internal
auditors and providing a forum that is independent of the
Management; and
iii. To maintain through regular scheduled meengs a direct line
of communicaon between the Board and the external auditors,
internal auditors and financial management.
c. Dues and Responsibilies
The dues and responsibilies of the Audit Commiee are:i. To consider the appointment of the external auditors, the audit
fee and any queson of resignaon or dismissal;
ii. To discuss with the external auditors before the commencement
of the audit;
iii. To review the annual financial statements before submission
to the Board, focusing parcularly on:
• any changes in accounng policies and pracces;
• major judgmental areas;
• significant adjustments resulng from the audit; and
• compliance with accounng standards, regulatory and other
legal requirements;
22
iv. To discuss issues arising from the audits and any maers auditors
may wish to discuss;
v. To review the internal audit programme, consider the major
findings of internal audit, including invesgaons, if any, and
management response and ensure co-ordinaon between the
internal and external auditors;
vi. To keep under review the effecveness of risk management
and internal control systems; and
vii. To carry out such other funcons as may be agreed by the Audit
Commiee and the Board.
d. Authority
The Audit Commiee is authorised by the Board to invesgate
any acvity within its terms of reference. It is authorised to seek
any informaon it requires from any employee and all
employees are required to cooperate with any request made by
the Audit Commiee.
e. Meeng and Minutes
The Audit Commiee shall hold not less than two (2) meengs a
year. The quorum for each meeng shall be two (2) members
present in person.
Representaves of the external auditors and/or the internal
auditors shall aend meeng(s) where maers relang to the
audit of the statutory accounts or internal control system are to
be discussed following the audits.
Minutes of each meeng shall be kept and presented at every
ensuing Board meeng.
4. Summary of Acvies of the Audit
Commiee during the year and up to
the date of this Report
The Audit Commiee carried out its dues in accordance with its
Terms of Reference.
The main acvies carried out by the Audit Commiee for the
financial year ended 31 December 2014 and up to the date of
this Report are as follows:
i. Reviewed the internal audit reports, status of correcve acons
taken and assistance rendered by staff to the auditors;
ii. Considered the appointment of the external auditors and the
audit fee;
iii. Deliberated with the external auditors on the dra audited
financial statement for year ended 31 December 2014 in the
presence of the President, the Treasurer and the Management
of the Secretariat before recommending the same to the Board
for approval.
iv. Reviewed the changes in the Malaysian Financial Reporng
Standards.
AUDIT COMMITTEE REPORT
5. Internal Audit Funcon
The internal audit funcon is undertaken by an independent consulng firm, namely Messrs Morison AAC Corporate Soluons Sdn Bhd.
Its principal acvies are to perform regular and systemac reviews of the system of internal controls and to provide reasonable
assurance that the system of internal controls connue to operate sasfactorily and effecvely. The internal audit funcon reports
directly to the Audit Commiee.
The cost of the internal audit service for the financial year ended 31 December 2014 amounted to approximately RM15,500.
The purpose, authority and responsibility of the internal audit funcon as well as the nature of the assurance acvies provided by the
funcon are arculated in the engagement leer.
The internal audit report (“report”) for the financial year ended 31 December 2014 was issued on 22 September 2014 and was
deliberated during the Audit Commiee Meeng. The areas audited during the year are as follows:
a. Professional Development Management;
b. Membership Management; and
c. Follow-up on previous audit reports on Revenue and Receivables Management and Human Resource Management in the following areas:
(i) Financial Risk Management (issued 4 December 2013);
(ii) Revenue and Receivables Management (issued 28 February 2013); and
(iii) Human Resource Management (issued on 9 January 2012).
The report also recorded that various acon plans had been taken by Management to strengthen and enhance the controls and
workflow of the areas that the internal auditor had audited.
23
PROFESSIONAL DEVELOPMENT COMMITTEE (PDC) REPORT
Well-craed connuing professional development is important because it delivers benefits to individuals, elevate their profession and
improve their delivery and responsibilies to other stakeholders. With this in mind, the Professional Development Department in
consultaon with the Professional Development Commiee (PDC), organised value-added professional development programmes for
the members of the Instute. Keeping abreast with new issues emerging from the evolving landscape in the field of governance, risks
and controls, new programmes were introduced and programme contents enhanced so that the programmes connue to remain
relevant and value-adding. Programmes conducted in 2014 contributed were close to RM4 million, to the Instute’s revenue for the
financial year ended 31 December 2014.
We highlight the following major professional development programmes and acvies held during the year under review:
Core Audit Training
Chief Audit Execuve Programme
The Instute was a hive of acvity in 2014. A total of 71 programmes
comprising 5 conferences, 49 workshops and seminars and 17
in-house programmes were held throughout the year. Some 3,000
individuals were trained under these programmes.
In conjuncon with the 2014 Naonal Conference, the Instute
organised a half-day forum targeted at Chief Audit Execuves
(CAE) entled “CAE as Agent for Change”. The forum garnered
interest from 150 parcipants comprising Heads of Internal
Audit from various sectors.
Naonal Conference on Internal Auding
The 2014 Naonal Conference on Internal Auding was held on
13 - 14 October 2014 at the Kuala Lumpur Convenon Centre
(KLCC). It was officiated by Datuk Ranjit Ajit Singh, Execuve
Chairman of Securies Commissions Malaysia. The conference
was aended by over 900 delegates.
Audit Commiee Conference
Back by popular demand and following the successful conference
held the year before, the Instute in collaboraon with the
Malaysian Instute of Accountants, held the Audit Commiee
Conference on 19 March 2014 at Connexion@Nexus, Bangsar
South, Kuala Lumpur. More than 280 delegates, comprising
directors and audit commiee members, parcipated in the
conference which featured four plenary sessions.
Corporate Fraud Conference
The Corporate Fraud Conference was held on 28 - 29 April 2014
at Prince Hotel and Residence Kuala Lumpur. The conference
was aended by more than ninety delegates and featured a
keynote address, three plenary sessions and two concurrent
master classes by disnguished local and internaonal speakers.
Shariah Audit: Key Pillar of Governance
for Islamic Finance” with IBFIM
With many iniaves already underway to support the
Government’s mission to make Malaysia a key Islamic financial
hub, the Instute in collaboraon with IBFIM, organised a
plaorm to highlight and discuss issues and trends in Shariah
audit. The event entled Shariah Audit Conference was the
Instute’s first conference to focus on Shariah auding. Held on
20 - 21 May 2014 at Hotel Istana, Kuala Lumpur, the two-day
conference was officiated by Datuk Hj. Ahmad Maslan, Deputy
Minister of the Ministry of Finance, Malaysia. 90 delegates
parcipated in the event. The conference included 7 plenary
sessions by local and internaonal industry experts.
All Star Conference
The Instute brought the best to the Land of the Hornbill. Our All
Star Conference was held on 8 - 9 December 2014 at Hilton
Kuching. The conference was officiated by YB Dato Sri Wong
Soon Koh, Sarawak State Minister for Finance II and Minister
for Local Government and Community Development. The
conference showcased our panel of best speakers and topics
from conferences organised by the Instute throughout the year.
24
Collaboraons with Regulatory and
Professional Bodies
The Instute collaborated with regulatory and professional
bodies to forge smart and synergisc partnership to bring the
profession and industry to the next level. The following joint
programmes were conducted for their members, IIA members
and the general public.
- Seminars with ACCA Malaysia
Three seminars entled “Internal Controls for Accountants
and Auditors”, “Effecve Invesgave Techniques” and
“Management - Audit - Monitoring of Construcon `Projects`”
were held in Kuala Lumpur.
- IT Governance with ISACA Malaysia Chapter
Two workshops namely “COBIT 5: A Business Framework for IT
Governance” and “IT Auding Knowledge and Skills to Value
Add” were held at Concorde Hotel Kuala Lumpur.
- Enhancing Internal Audit Pracce with Bursa Malaysia
The half-day session was held in Kuala Lumpur and was targeted
at Audit Commiee Members.
The PDC takes this opportunity to welcome our panel of new
speakers and trainers during the year and express our thanks to all
speakers and trainers for their efforts and commitment in raising
the knowledge and skills of internal audit professionals and
directors. Our gratude also goes to all our members and corporate
organisaons that have looked to the Instute for their training
needs and have been staunch supporters of the Instute’s
programmes and conferences.
Borrowing the words of Vince Lombardi; a famous American football
player and coach, who said “the achievements of an organisaon
are the results of the combined effort of each individual,” the PDC
would like to extend our deepest appreciaon to the team at the
Professional Development & Training Department of the Instute
for their reless efforts and dedicaon in serving the ever-growing
knowledge needs of the members and the profession.
Lastly, I thank the commiee members of the PDC for their
praccal input, unwavering support and generous contribuon of
their me in the furtherance of the interest of the Instute’s moo
of “Progress through Sharing”.
Chrisne Ong
Chairperson
Professional Development Commiee 2014/2015
RESEARCH AND TECHNICAL ADVISORY COMMITTEE
The Research and Technical Advisory Commiee (RTAC), during
the year under review, connued to implement its strategic
plans in achieving the following objecves:
• to provide technical advice on maers relang to internal audit,
corporate governance, risk management and internal controls;
• to provide periodic technical updates to members on recent
issues relang to internal audit related maers;
• to promote thought leadership on governance, risk and controls
related maers;
Research Projects
The RTAC veed research proposals and closely monitored the
progress, to ensure the objecves of the research projects were
met. Two (2) research projects tled “A Study of Malaysian
Internal Auditors’ Role in Risk Management” and “A Study on
Audit Commiees’ Role in Internal Audit and Risk Management”
by Dr Grace Y Mui and Walter Sandosam, were funded by the
research grant and the results of both surveys were released in
September 2014. The report on the survey results were published
in the KIT, July-Sept 2014 issue.
• to idenfy and iniate projects to build the research fund.
The research on “Assessing the Extent of Compliance with Risk
Management and Internal Control Guidelines for Director of
Listed Issuers” by Dr Raja Adzrin bin Raja Ahmad from UiTM
Johor, was also funded by a research grant which has been
approved by the Commiee in the second quarter of 2014. The
survey result is expected to be released to the members in 2015.
Publicaon
Technical Advisory Assistance
The RTAC enhanced its technical advisory role by providing
members with more periodic technical updates through e-mails,
as well as sourcing and publishing technical related arcles in the
Keeping in Touch (KIT) newsleer and E-techline (an electronic
update via email designed to keep members posted with
technical issues concerning the profession). In 2014, there were
seven (7) issues of E-techline and the topics covered include:
One of the services provided by IIA Malaysia exclusively for
members is to provide technical support by assisng members
with technical enquiries. There were 14 technical enquiries
received via emails and phone calls throughout the term
(2014/2015). All the enquiries received were responded via
emails by our technical team. The technical team of IIA Malaysia
connued to provide mely pernent advisory feedback in
response to various technical enquiries received from members.
• to plan and coordinate the implementaon of research projects
for IIA Malaysia pertaining to governance, risk and controls;
• to provide grants for governance, risk and controls related research
projects;
• The Study on Non-Execuve Directors 2013 - Profile and Pay by
KPMG,
• Improving Organisaonal Performance and Governance: How
the COSO Framework Can Help, by COSO Commiee;
The Commiee would like to encourage more members and
educators to engage in internal audit related research projects
that will contribute to bringing the profession to the forefront of
corporate governance, risk management and controls.
• IIA SmartBrief - Essenal Connecon to Internal Audit News;
• Research Reports released by the Instute of Internal Auditors
(IIA) Research Foundaon:
- Nine Elements Required for Internal Audit Effecveness in the
Public Sector;
- Evaluang Internal Control Systems - A Comprehensive
Assessment Model (CAM) for Enterprise Risk Management;
Mohd Khaidzir Bin Shahari
Chairperson
Research and Technical Advisory Commiee 2014/2015
• Global Pulse of the Profession Report published by the Global
IIA’s Audit Execuve Centre: Enhancing Value Through
Collaboraon - A Call To Acon;
• Deloie’s whitepaper - The Role of Internal Audit in the Digital
Enterprise;
• The Malaysian Code for Instuonal Investors issued by Securies
Commission; and
• Pracce Guides and Tone at the Top issued by the Global IIA.
25
PROFESSIONAL SERVICES COMMITTEE
Membership
• Newsleer
During the year, a total of 355 new individual members joined
the Instute bringing the total number of individual members to
2,741. A total of 15 new corporate members were registered
throughout 2014 and at the year end there was 247 members.
The Keeping In Touch (KIT) newsleer connues to be one of
the avenues of communicaon with members. The KIT provides
updates on the latest development in the internal auding
profession, current issues and as well as informaon on the
programmes and acvies organised by the Instute.
Acvies
We produced four issues of the KIT in 2014. The first and last
issues were in hardcopies while the other two issues were online
versions uploaded onto IIA Malaysia’s website. As a cost saving
measure, coloured pages in the hardcopy KIT were limited to
pages containing photographs of events and adversements.
In 2014, the PSC organised the following membership recruitment
and retenon acvies:
• Membership Drive Campaign
The Membership Drive Campaign connues to be one of the
acvies conducted to recruit new members. The support and
efforts of 52 members resulted in the recruitment of 81 new
members throughout the duraon of the membership drive
campaign, from 1 March to 31 August 2014.
• Members’ Networking Sessions
IIA Malaysia organised 7 networking sessions in 2014, four
in Kuala Lumpur and one each in Johor Bahru, Penang and
Kuching. A total of 180 parcipants aended the networking
sessions.
The PSC would like to thank members who have contributed
arcles to the KIT and look forward to more contribuons in
the form of arcles to share thoughts and experiences with
the internal audit fraternity.
I would also like to thank the staff at the Professional Services
Department and PSC members for support rendered to our
members.
Talks during the networking sessions were delivered by
experienced speakers and included topics such as Contemporary
Issues Relang to Internal Auding, Fraud, Embracing COSO,
Quality Audit To Improve Efficiency, Sustainable Business Growth
And Profitability, Society As A Licensor, and Adding Business
Value Through The Governance Of Social Media.
• Preview
Briefings on membership of IIA Malaysia were conducted during
CIA previews and career talks organised by the Cerficaon
and Academic Relaons Commiee (CARC). During the preview,
aendees were briefed on the categories of membership
offered by IIA Malaysia, benefits of being a member of IIA
Malaysia, membership fee and the membership applicaon
process. The total number of briefings conducted was 11 preview
sessions in 2014.
Promoon of membership was also conducted at the IIA
Malaysia booth during conferences and exhibions organised
by IIA Malaysia and other pares.
• Corporate Award
Corporate members were honoured with Corporate Award for
their support of IIA Malaysia’s professional development and
cerficaon programmes. RHB Bank Berhad, Sime Darby Berhad,
UMW Corporaon Sdn Bhd, Tenaga Nasional Berhad and
Lembaga Hasil Dalam Negeri were presented with Corporate
Awards for their commitment to connuous professional
development. Similarly, Tenaga Nasional Berhad, KPMG, Crowe
Horwath Governance Sdn Bhd, QSR Brands (M) Holdings Sdn Bhd,
Nestle Products Sdn Bhd, Prokhas Sdn Bhd, Ernst & Young,
Columbus Advisory Sdn Bhd and Sime Darby Berhad were
honoured for their strong commitment to cerficaon
programmes.
The presentaon of the corporate awards took place on
21 March 2014 in conjuncon with the Cerfied Internal
Auditor (CIA) Graduaon Ceremony.
26
Lucy Wong Kam Yang
Chairperson
Professional Services Commiee 2014/2015
CERTIFICATION AND ACADEMIC RELATIONS COMMITTEE
(CARC) REPORT
CERTIFICATION
ACADEMIC RELATIONS
Cerfied Internal Auditor (CIA)
The Instute connues to work with instuons of higher learning
to promote internal auding profession and educaon through
academic support and various programmes. Consistent with last
year, in May 2014 the Internal Audit Students Conference was
hosted by University Malaya in conjuncon with the Internal Audit
Awareness month that is promoted worldwide by IIA Global.
Promoonal efforts carried out over the last few years were
fruiul, as reflected in the number of enrolment in the CIA
programme. A total of 201 new candidates enrolled in the CIA
programme during the year 2014, which recorded a 30% increase
in the number of enrolment as compared to 154 in 2013.
A total of 376 examinaon parts were sat for by candidates in this
year, as compared to 505 in 2013. 27 candidates completed the
CIA examinaon this year. Hence, the total number of CIA among
our members as at December 2014 is 725.
The CIA was promoted mainly through preview sessions. 22
preview sessions were conducted, comprising public, in-house
and on-campus preview held in conjuncon with career talks for
university students. During the year under review, we visited
Boustead Berhad, Bank Rakyat, AEON Retail Berhad, Perlis
Plantaon Berhad, MNRB Berhad, Tenaga Nasional Berhad, Felda
Global Ventures, Kementerian Wilayah Persekutuan and local
municipalies of Selangor for preview and discussion on
sponsorship of their internal auditors for CIA programme as well
as to discuss in-house review courses.
The CIA and other specialty programmes were also promoted at
IIA Malaysia booth during conferences, career talks and other
events at various instuons of higher learning.
We began to introduce in-house CIA Review Course in 2013.
Columbus Advisory Sdn Bhd was the first organisaon to engage
IIA Malaysia for an in-house CIA Review Course for its staff. Public
CIA Review Courses were held in March and December 2014 to
assist candidates with their final preparaon for CIA exams. Due
to its success, IIAM plans to conduct quarterly or half yearly CIA
Review in the coming years.
A graduaon ceremony was held on 21 March 2014 graced by
the presence of Paul Sobel, Chairman of the Board of Directors,
IIA Global who presented scrolls to 45 graduates. During the
Graduaon Ceremony, Famah Abu Bakar who was the President
of IIA Malaysia for 2006/2008 term presented the Past President
Award to Neoh Mii Tze who completed all four parts of the CIA
exam within four months in 2013.
We connue to visit various universies to conduct career talks. The
objecve of the talk is to introduce and promote internal auding as
a profession as well as a career opons for students. 8 sessions of
career talks were conducted in Mulmedia Universi (MMU),
Universi Kebangsaan Malaysia (UKM), UNITAR, Universi Malaya
(UM), Universi Teknologi MARA (Shah Alam), Kolej Polytech MARA,
Universi Tenaga Nasional (UNITEN) and Swinburne University,
Kuching. We also parcipated in the career fair at Universi Putra
Malaysia and UNITAR Internaonal University.
IIA Malaysia has inked two strategic collaboraons with instuons
of higher learning. A Memorandum of Understanding was signed
with AIMST University in February 2014 to introduce a new
educaon programme called Bachelor of Internal Auding and
Management. In October 2014 IIA Malaysia signed a Memorandum
of Understanding with UNITAR Internaonal University to introduce
specialisaon in Internal Auding in the Bachelor of Accounng
(Hons) programme offered by UNITAR.
OTHER ACTIVITIES
The Commiee has also embarked on the translaon of the IIA
Standards into Bahasa Melayu. The translaon is aimed at providing
internal audit praconers in the public sector standardised and
uniformed internal auding terminologies for their reference.
The Cerficaon and Academic Relaons Commiee would like to
record our utmost appreciaon to members who have assisted the
Commiee in various cerficaon and academic relaons acvies
in the year 2014.
Dr Nurmazilah Dato’ Mahzan
Chairperson
Cerficaon and Academic Relaons Commiee 2014/2015
The IIA Malaysia charted a milestone in its endless endeavour to
nurture more internal audit professionals when it signed an MOA
with TalentCorp for an upskilling programme called ‘IIA CIA Talent’.
Under this programme TalentCorp provide paral funding on the
registraon and review course fees. Host companies whose
employees have sasfied the requirement of the programme will
be eligible to apply for reimbursement. In addion, we also
parcipated in career fairs organised by TalentCorp, held in
Sunway University and Penang.
Specialty Programmes
One candidate passed the Cerficaon in Control Self-Assessment
(CCSA) examinaon, as such the total number of CCSA cerfied
member as at 31 December 2014 was 54. Throughout the year,
only 1 candidate passed the CFSA, bringing the total number of
CFSA as at 31 December 2014 to 28. The total number of CGAP
holders remain at 3. 4 candidates aempted the Cerficaon in
Risk Management Assurance (CRMA) and the total number of
CRMA at the end of the year was 101.
27
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
CONTENTS
Page
GOVERNORS’ REPORT
29
STATEMENT OF FINANCIAL POSITION
31
STATEMENT OF COMPREHENSIVE INCOME
32
STATEMENT OF CHANGES IN EQUITY
33
STATEMENT OF CASH FLOWS
34
NOTES TO THE FINANCIAL STATEMENTS
35
STATEMENT BY GOVERNORS
50
STATUTORY DECLARATION
51
INDEPENDENT AUDITOR’S REPORT
52
GOVERNORS’ REPORT
The Governors hereby submit their report together with the audited financial statements of The Instute of Internal Auditors Malaysia
(the “Instute”) for the financial year ended 31 December 2014.
PRINCIPAL ACTIVITIES
The principal acvies of the Instute are to promote and develop the pracce of internal auding in Malaysia and to provide training
and development facilies to its members.
There have been no significant changes to the nature of these principal acvies during the financial year.
RESULTS
Profit before taxaon
Taxaon
Net profit for the financial year
Other comprehensive income
Net increase in research fund
Total comprehensive income for the financial year
RM
854,574
(214,016)
640,558
(6,236)
634,322
DIVIDENDS
In accordance with the Memorandum of Associaon, no dividend is payable to the members of the Instute.
RESERVES AND PROVISIONS
All material transfers to and from reserves and provisions during the financial year have been disclosed in the financial statements.
BAD AND DOUBTFUL DEBTS
Before the statement of comprehensive income and statement of financial posion of the Instute were made out, the Governors
took reasonable steps to ascertain that acon had been taken in relaon to the wring off of bad debts and the making of allowance
for doubul debts and had sasfied themselves that all known bad debts had been wrien off and adequate allowance had been
made for doubul debts.
At the date of this report, the Governors are not aware of any circumstances that would render the amount wrien off for bad debts,
or the amount of the allowance for doubul debts, in the financial statements of the Instute inadequate to any substanal extent.
CURRENT ASSETS
Before the statement of comprehensive income and statement of financial posion of the Instute were made out, the Governors
took reasonable steps to ensure that any current assets, other than debts, which were unlikely to be realised in the ordinary course of
business, including their values as shown in the accounng records of the Instute had been wrien down to an amount that they
might be expected to be realised.
At the date of this report, the Governors are not aware of any circumstances that would render the values aributed to the current
assets in the financial statements of the Instute misleading.
VALUATION METHODS
At the date of this report, the Governors are not aware of any circumstances which have arisen, which render adherence to the
exisng methods of valuaon of assets or liabilies of the Instute misleading or inappropriate.
CONTINGENT AND OTHER LIABILITIES
At the date of this report, there does not exist:(i) any charge on the assets of the Instute that has arisen since the end of the financial year which secures the liabilies of any
other person, and
(ii) any conngent liabilies in respect of the Instute that have arisen since the end of the financial year.
No conngent liabilies or other liabilies of the Instute have become enforceable, or are likely to become enforceable within the
period of twelve months aer the end of the financial year which, in the opinion of the Governors, will or may substanally affect the
ability of the Instute to meet its obligaons as and when they fall due.
29
GOVERNORS’ REPORT
CHANGE OF CIRCUMSTANCES
At the date of this report, the Governors are not aware of any circumstances, not otherwise dealt with in this report or the financial
statements of the Instute that would render any amount stated in the financial statements misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operaons of the Instute for the financial year were not, in the opinion of the Governors, substanally affected by
any item, transacon or event of a material and unusual nature.
No item, transacon or event of a material and unusual nature has arisen in the interval between the end of the financial year and the
date of this report which is likely, in the opinion of the Governors, to affect substanally the results of the operaons of the Instute
for the financial year in which this report is made.
GOVERNORS
The Governors who served since the date of the last report are:1. Philip Sash Rao
10. Chrisne Ong May Ee
2. Dato’ Shabaruddin Bin Ibrahim
11. Nik Hasnan Nik Abd Kadir
3. Lucy Wong Kam Yang
12. Zahran Bin Tasliman
4. Mohd Khaidzir Bin Shahari
13. Leong David @ Leong Sze Khiong
Elected on 17 May 2014
5. Dr.Nurmazilah Dato’ Mahzan
14. Suhailah Bin Mohamed Abdulla
Elected on 17 May 2014
6. Ranjit Singh A/L Taram Singh
15. Zainal Akbar Bin S.K. Md. Abdul Kader
Elected on 17 May 2014
7. Devanesan A/L J.A. Evanson
16. Mohamed Farook Bin Nasar
Rered on 17 May 2014
8. Chang Kong Chong
9. Choo Wei Sin
BOARD OF GOVERNORS’ INTERESTS AND BENEFITS
Since the end of the previous financial year, no Governor of the Instute has received or become entled to receive any benefit (other
than as disclosed in Note 20 to the financial statements) by reason of a contract made by the Instute with the Governors or with
a firm in which the Governor is a member, or with a company in which the Governor has a substanal financial interest.
AUDITORS
The auditors, Messrs Baker Tilly Monteiro Heng, have expressed their willingness to connue in office.
On behalf of the Board of Governors,
......................................................................................
......................................................................................
PHILIP SATISH RAO
DATO’ SHABARUDDIN BIN IBRAHIM
Governor
Governor
Kuala Lumpur
Date : 30 April 2015
30
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014
Note
2014
RM
4
5,317,862
538,905
5.317,862
538,905
ASSETS
Non-Current Assets
Property, plant and equipment
Total Non-Current Assets
2013
RM
CURRENT ASSETS
Trade receivables
5
544,010
418,950
Other receivables, deposits and prepayments
6
129,110
120,391
Inventories
7
91,679
142,870
Cash and cash equivalents
8
1,289,347
5,038,000
2,054,146
5,720,211
7,372,008
6,259,116
5,900,528
5,276,706
112,993
106,757
6,013,521
5,383,463
10
12,428
15,891
Trade payables
11
19,414
8,892
Other payables and accruals
12
689,661
336,124
Advance exam and fees
503,222
458,184
Tax payable
133,762
56,562
1,346,059
859,762
1,358,487
875,653
7,372,008
6,259,116
Total Current Assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Accumulated funds
Research fund
9
Total Equity
Non-Current Liabilies
Deferred Tax Liabilies
CURRENT LIABILITIES
Total Current Liabilies
Total Liabilies
TOTAL EQUITY AND LIABILITIES
The accompanying notes set out on pages 35 to 49 form an integral part of these financial statements.
31
STATEMENT OF COMPREHENSIVE INCOME FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
Note
2014
RM
2013
RM
REVENUE
13
6,849,686
5,932,003
Costs
14
(3,884,086)
(3,423,756)
2,965,600
2,508,247
150,044
138,104
(2,396,284)
(2,104,779)
GROSS PROFIT
Other income
15
Administrave and other operang expenses
Finance income
16
135,214
125,794
PROFIT BEFORE TAXATION
17
854,574
667,366
Taxaon
18
(214,016)
(168,250)
640,558
499,116
(6,236)
(21,103)
634,322
478,013
NET PROFIT FOR THE FINANCIAL YEAR
Other comprehensive income
Net increase in research fund
TOTAL COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR
The accompanying notes set out on pages 35 to 49 form an integral part of these financial statements.
32
STATEMENT OF CHANGES IN EQUITY FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
Research
Funds
RM
Accumulated
Funds
RM
Total
Equity
RM
AT 1 JANUARY 2013
85,654
4,802,193
4,887,847
Ulised during the financial year
(3,500)
-
(3,500)
Transfer from accumulated funds
24,603
(24,603)
-
-
499,116
499,116
AT 31 DECEMBER 2013
106,757
5,276,706
5,383,463
Ulised during the financial year
(10,500)
-
(10,500)
Transfer from accumulated funds
16,736
(16,736)
-
-
640,558
640,558
112,993
5,900,528
6,013,521
Net profit for the financial year
Net profit for the financial year
AT 31 DECEMBER 2014
The accompanying notes set out on pages 35 to 49 form an integral part of these financial statements.
33
STATEMENT OF CASH FLOWS FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
Note
2014
RM
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit before taxaon
Adjustments for:
2013
RM
854,574
667,366
Bad debts wrien off
950
3,460
Inventories wrien off
850
1,144
56,382
42,548
(135,214)
(125,794)
25,204
29,345
802,746
618,069
Decrease/(Increase) in inventories
50,341
(84,255)
Decrease/(Increase) in receivables
(134,729)
31,096
Increase/(Decrease) in payables
(409,097)
(12,406)
1,127,455
552,504
(140,279)
(102,640)
987,176
449,864
(4,835,339)
(53,389)
(10,500)
(3,500)
(4,845,839)
(56,889)
Finance income received
135,214
98,540
Finance costs paid
(25,204)
(29,345)
110,010
69,195
(3,748,653)
462,170
4,988,000
4,525,830
1,239,347
4,988,000
Depreciaon
Finance income
Finance costs
Changes in Working Capital:
Tax paid
Net Operang Cash Flows
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Research fund ulised
Net Invesng Cash Flows
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Financing Cash Flows
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE FINANCIAL YEAR
CASH AND CASH EQUIVALENTS AT THE
END OF THE FINANCIAL YEAR
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at banks
8
466,365
467,642
Fixed deposits with licensed commercial banks
8
822,982
4,570,358
1,289,347
5,038,000
(50,000)
(50,000)
1,239,347
4,988,000
Less: Fixed deposits pledged with bank
The accompanying notes set out on pages 35 to 49 form an integral part of these financial statements.
34
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The principal acvies of the Instute are to promote and develop the pracce of internal auding in Malaysia and to provide training
and development facilies to its members.
There have been no significant changes to the nature of these principal acvies during the financial year.
The Instute is a company limited by guarantee, incorporated and domiciled in Malaysia.
The office of the Instute is located at No. 160-3-2 & 160-3-3, Kompleks Maluri, Jalan Jejaka, Taman Maluri, Cheras, 55100 Kuala Lumpur.
The total number of employees of the Instute as at the end of the financial year was 21 (2013 : 22).
The financial statements are expressed in Ringgit Malaysia.
The financial statements were authorised for issue by the Board of Governors in accordance with a resoluon of the Governors on
30 April 2015.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Preparaon
The financial statements of the Instute have been prepared in accordance with the Malaysian Financial Reporng Standards
(“MFRSs”), Internaonal Financial Reporng Standards and the requirements of the Companies Act, 1965 in Malaysia.
The financial statements of the Instute have been prepared under the historical cost basis, except as disclosed in the significant
accounng policies in Note 2.3.
The preparaon of financial statements in conformity with MFRSs requires the use of certain crical accounng esmates and
assumpons that affect the reported amounts of assets and liabilies and disclosures of conngent assets and liabilies at the date of
the financial statements, and the reported amounts of the revenue and expenses during the reporng period. It also requires the
Governors to exercise their judgment in the process of applying the accounng policies of the Instute. Although these esmates and
judgment are based on the Governors’ best knowledge of current events and acons, actual results may differ.
The areas involving a higher degree of judgement or complexity, or areas where assumpons and esmates are significant to the
financial statements are disclosed in Note 3.
2.2 New MFRSs, Amendments/Improvements to MFRSs and New IC Interpretaons (”IC Int”)
(a) Adopon of Amendments/Improvements to MFRSs and New IC Int
The Instute had adopted the following amendments/improvements to MFRSs and new IC Int that are mandatory for the current
financial year:
Amendments/Improvements to MFRSs
MFRS 10
MFRS 12
MFRS 127
MFRS 132
MFRS 136
MFRS 139
Consolidated Financial Statements
Disclosure of Interests in Other Enes
Separate Financial Statements
Financial Instruments: Presentaon
Impairment of Assets
Financial Instruments: Recognion and Measurement
New IC Int
IC Int 21
Levies
The adopon of the above amendments/improvements to MFRSs and new IC Int do not have any effect on the financial statements
of the Instute except for those as discussed below:-
Amendments to MFRS 132 Financial Instruments: Presentaon
Amendments to MFRS 132 does not change the current offseng model in MFRS 132. The amendments clarify the meaning of ‘currently
has a legally enforceable right of set-off’, that the right of set-off must be available today (not conngent on a future event) and legally
enforceable for all counterpares in the normal course of business. The amendments clarify that some gross selement mechanisms
with features that are effecvely equivalent to net selement will sasfy the MFRS 132 offseng criteria. This Amendments only
impacts the presentaon in the financial statements but has no impact on the financial results and posions of the Instute.
Amendments to MFRS 136 Impairment of Assets
Amendments to MFRS 136 clarifies that disclosure of the recoverable amount (based on fair value less costs of disposal) of an asset or
cash generang unit is required to be disclosed only when an impairment loss is recognised or reversed. In addion, there are new
disclosure requirements about fair value measurement when impairment or reversal of impairment is recognised.
35
NOTES TO THE FINANCIAL STATEMENTS
Amendments to MFRS 139 Financial Instruments: Recognion and Measurement
Amendments to MFRS 139 provides relief from disconnuing hedge accounng in a situaon where a derivave, which has been
designated as a hedging instrument, is novated to effect clearing with a central counterparty as a result of laws or regulaon, if specific
condions are met. As a result of the amendments, connuaon of hedge accounng is permied if as a consequence of laws or
regulaons, the pares to hedging instrument agree to have one or more clearing counterpares replace their original counterparty
and the changes to the terms arising from the novaon are consistent with the terms that would have existed if the novated derivave
were originally cleared with the central counterparty.
(b) New MFRSs and Amendments/Improvements to MFRSs that are issued, but not yet effecve and have not been
early adopted
The Instute have not adopted the following new MFRSs, and amendments/improvements to MFRSs that have been issued by the
Malaysian Accounng Standards Board (“MASB”) as at the date of authorisaon of these financial statements but are not yet effecve
for the Instute:-
Effecve for financial
periods beginning on or aer
New MFRSs
MFRS 9
MFRS 15
Financial Instruments
Revenue from Contracts with Customers
1 January 2018
1 January 2017
Amendments/Improvements to MFRSs
MFRS 1
MFRS 2
MFRS 3
MFRS 5
MFRS 7
MFRS 8
MFRS 10
MFRS 11
MFRS 12
MFRS 13
MFRS 101
MFRS 116
MFRS 119
MFRS 124
MFRS 127
MFRS 128
MFRS 138
MFRS 140
MFRS 141
First-me Adopon of Malaysian Financial Reporng Standards
Share-based Payment
Business Combinaons
Non-current Asset Held for Sale and Disconnued Operaons
Financial Instruments: Disclosures
Operang Segments
Consolidated Financial Statements
Joint Arrangements
Disclosures of Interests in Other Enes
Fair Value Measurement
Presentaon of Financial Statements
Property, Plant and Equipment
Employee Benefits
Related Party Disclosures
Separate financial statements
Investments in Associates and Joint Ventures
Intangible Assets
Investment Property
Agriculture
1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016
1 July 2014
1 January 2016
1 January 2016
1 January 2016
1 July 2014
1 January 2016
1 July 2014/1 January 2016
1 July 2014/1 January 2016
1 July 2014
1 January 2016
1 January 2016
1 July 2014/1 January 2016
1 July 2014
1 January 2016
on the above significant new MFRSs and amendments/improvements to MFRSs are summarised below. Due to the complexity of
these new standards, the financial effects of their adopon are currently sll being assessed by the Instute.
MFRS 9 Financial Instruments
MFRS 9 introduces a package of improvements which includes a classificaon and measurement model, a single forward-looking
expected loss’ impairment model and a substanally-reformed approach to hedge accounng.
Classificaon and measurement
MFRS 9 introduces an approach for classificaon of financial assets which is driven by cash flow characteriscs and the business model
in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments.
In essence, if a financial asset is a simple debt instrument and the objecve of the enty’s business model within which it is held is to
collect its contractual cash flows, the financial asset is measured at amorsed cost. In contrast, if that asset is held in a business model
the objecve of which is achieved by both collecng contractual cash flows and selling financial assets, then the financial asset is
measured at fair value in the statement of financial posion, and amorsed cost informaon is provided through profit or loss. If the
business model is neither of these, then fair value informaon is increasingly important, so it is provided both in the profit or loss and
in the statement of financial posion.
36
NOTES TO THE FINANCIAL STATEMENTS
Impairment
MFRS 9 introduces a new, expected-loss impairment model that will require more mely recognion of expected credit losses.
Specifically, this Standard requires enes to account for expected credit losses from when financial instruments are first recognised
and to recognise full lifeme expected losses on a more mely basis. The model requires an enty to recognise expected credit losses
at all mes and to update the amount of expected credit losses recognised at each reporng date to reflect changes in the credit risk
of financial instruments. This model eliminates the threshold for the recognion of expected credit losses, so that it is no longer
necessary for a trigger event to have occurred before credit losses are recognised.
Hedge accounng
MFRS 9 introduces a substanally-reformed model for hedge accounng, with enhanced disclosures about risk management acvity.
The new model represents a significant overhaul of hedge accounng that aligns the accounng treatment with risk management
acvies, enabling enes to beer reflect these acvies in their financial statements. In addion, as a result of these changes, users
of the financial statements will be provided with beer informaon about risk management and the effect of hedge accounng on the
financial statements.
Amendments to MFRS 13 Fair Value Measurement
Amendments to MFRS 13 relates to the IASB’s Basis for Conclusions which is not an integral part of the Standard. The Basis for
Conclusions clarifies that when IASB issued IFRS 13, it did not remove the praccal ability to measure short-term receivables and
payables with no stated interest rate at invoice amounts without discounng, if the effect of discounng is immaterial.
The Amendments also clarifies that the scope of the porolio excepon of MFRS 13 includes all contracts accounted for within the
scope of MFRS 139 Financial Instruments: Recognion and Measurement or MFRS 9 Financial Instruments, regardless of whether they
meet the definion of financial assets or financial liabilies as defined in MFRS 132 Financial Instruments: Presentaon.
Amendments to MFRS 101 Presentaon of Financial Statements
Amendments to MFRS 101 improves the effecveness of disclosures. The Amendments clarifies guidance on materiality and
aggregaon, the presentaon of subtotals, the structure of financial statements and the disclosure of accounng policies.
Amendments to MFRS 116 Property, Plant and Equipment
Amendments to MFRS 116 clarifies the accounng for the accumulated depreciaon/amorsaon when an asset is revalued.
It clarifies that:
• the gross carrying amount is adjusted in a manner that is consistent with the revaluaon of the carrying amount of the asset; and
• the accumulated depreciaon/amorsaon is calculated as the difference between the gross carrying amount and the carrying
amount of the asset aer taking into account accumulated impairment losses.
Amendments to MFRS 116 prohibits revenue-based depreciaon because revenue does not reflect the way in which an item of
property, plant and equipment is used or consumed.
Amendments to MFRS 119 Employee Benefits
Amendments to MFRS 119 provides a praccal expedient in accounng for contribuons from employees or third pares to defined
benefit plans.
If the amount of the contribuons is independent of the number of years of service, an enty is permied to recognise such
contribuons as a reducon in the service cost in the period in which the related service is rendered, instead of aribung the
contribuons to the periods of service.
However, if the amount of the contribuons is dependent on the number of years of service, an enty is required to aribute those
contribuons to periods of service using the same aribuon method required by MFRS 119 for the gross benefit (i.e. either based on
the plan’s contribuon formula or on a straight-line basis).
In addion, the Amendments clarifies that the high quality corporate bonds used to esmate the discount rate for post-employment
benefit obligaons should be denominated in the same currency as the liability and the depth of the market for high quality corporate
bonds should be assessed at a currency level.
Amendments to MFRS 124 Related Party Disclosures
Amendments to MFRS 124 clarifies that an enty providing key management personnel services to the reporng enty or to the
parent of the reporng enty is a related party of the reporng enty.
37
NOTES TO THE FINANCIAL STATEMENTS
2.3 Significant Accounng Policies
The following accounng policies have been used consistently in dealing with items which are considered material in relaon to the
financial statements.
(a) Property, Plant and Equipment and Depreciaon
Property, plant and equipment are stated at cost less accumulated depreciaon and impairment losses, if any. The policy for the
recognion and measurement of impairment losses is in accordance with Note 2.3 (j).
Depreciaon is calculated to write off the cost on a straight line basis over the expected useful lives of the assets concerned.
The annual rates used for this purpose are as follows:Leasehold premises
2%
Air condioners
20%
Computers and soware
20% - 33 1/3%
Furniture and fings
20%
Office equipment
20%
Office renovaon
20%
The residual values, useful lives and depreciaon method are reviewed at each financial year end to ensure that the amount,
method and period of depreciaon are consistent with previous esmates and the expected paern of consumpon of the
future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from
its use or disposal. The difference between the net disposal proceeds, if any, and the net carrying amount is recognised in the
statement of comprehensive income.
(b) Inventories
Inventories comprise mainly the publicaons and books from the Instute. Inventories are stated at the lower of cost and net
realisable value. Costs, which comprise the cost of purchase plus incidentals in bringing the inventories to their present locaon
and condion, are determined on the first-in, first-out basis.
Net realisable value is the esmate of the selling price in the ordinary course of business, less selling expenses.
(c) Receivables
Receivables are carried at ancipated realisable values. Bad debts are wrien off when idenfied. An esmate is made for doubul
debts based on a review of all outstanding amounts as at the reporng date.
(d) Payables
Payables are stated at cost which is the fair value of the consideraon to be paid in the future, whether or not billed to the Instute.
(e) Income Tax
The tax expense in the statement of comprehensive income represents the aggregate amount of current tax and deferred tax
included in the determinaon of net profit or loss for the year.
Deferred tax is provided for, using the liability method, on temporary differences at the reporng date arising between the tax
bases of assets and liabilies and their carrying amounts in the financial statements. In principle, deferred tax liabilies are
recognised for all taxable temporary differences and deferred tax assets are recognised for all deducble temporary differences,
unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the
deducble temporary differences, unused tax losses and unused tax credits can be ulised.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is seled,
based on tax rates that have been enacted or substanvely enacted at the reporng date. Deferred tax is recognised in the
statement of comprehensive income, except when it arises from a transacon which is recognised directly in equity, in which case
the deferred tax is also charged or credited directly in equity.
38
NOTES TO THE FINANCIAL STATEMENTS
(f) Revenue Recognion
(i) Revenue from operaons
Revenue from seminars, conferences, workshops, Quality Assurance Review (“QAR”) and Cerfied Internal Auditor (“CIA”)
examinaon income are recognised on an accrual basis. Entrance fees and membership subscripons are recognised as revenue
on a cash basis for the fees received in respect of the year. However, where the subscripons are received in advance for the
following year’s subscripon, they would be recorded as a current liability as the advance subscripons are not earned yet.
(ii) Interest income
Interest income is recognised on an accrual basis.
(g) Financial Assets
Financial assets are recognised in the statement of financial posion when, and only when, the Instute becomes a party to the
contractual provisions of the financial instrument.
When financial assets are recognised inially, they are measured at fair value, plus, in the case of financial assets not at fair value
through profit or loss, directly aributable transacon costs.
The Instute determines the classificaon of its financial assets at inial recognion, and the categories include financial assets
at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets.
(i) Loans and Receivables
Financial assets with fixed or determinable payments that are not quoted in an acve market are classified as loans and receivables.
Subsequent to inial recognion, loans and receivables are measured at amorsed cost using the effecve interest method.
Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through
the amorsaon process.
Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months aer the
reporng date which are classified as non-current.
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognion
of a financial asset in its enrety, the difference between the carrying amount and the sum of the consideraon received and
any cumulave gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.
(h) Financial Liabilies
Financial liabilies are classified according to the substance of the contractual arrangements entered into and the definions of
a financial liability.
Financial liabilies, within the scope of MFRS 139, are recognised in the statement of financial posion when, and only when, the
Instute becomes a party to the contractual provisions of the financial instrument. Financial liabilies are classified as either
financial liabilies at fair value through profit or loss or other financial liabilies.
(i) Other Financial Liabilies
The other financial liabilies of the Instute include trade payables and other payables.
Trade and other payables are recognised inially at fair value plus directly aributable transacon costs and subsequently
measured at amorsed cost using the effecve interest method.
For other financial liabilies, gains and losses are recognised in profit or loss when the liabilies are derecognised, and through
the amorsaon process.
A financial liability is derecognised when the obligaon under the liability is exnguished. When an exisng financial liability
is replaced by another from the same lender on substanally different terms, or the terms of an exisng liability are substanally
modified, such an exchange or modificaon is treated as a derecognion of the original liability and the recognion of a new
liability, and the difference in the respecve carrying amounts is recognised in profit or loss.
39
NOTES TO THE FINANCIAL STATEMENTS
(i) Foreign Currency Transacons
Transacons in foreign currencies are recorded in Ringgit Malaysia at rates of exchange ruling at the me of the transacons.
Foreign currency monetary assets and liabilies are translated at exchange rates ruling at reporng date.
Gains and losses from conversion of assets and liabilies, whether realised or unrealised are included in the statement of
comprehensive income as they arise.
All other foreign exchange differences are taken to the statement of comprehensive income in the financial year in which they arise.
The principal closing rate used is as follows:-
1 US Dollar
2014
RM
2013
RM
3.20
3.28
(j) Impairment of Assets
At each reporng date, the carrying values of assets, other than financial assets and deferred tax assets, are reviewed for impairment
to determine whether there is an indicaon that the assets might be impaired. Impairment is measured by comparing the carrying
values of the assets with their recoverable amounts. The recoverable amount is the higher of the net selling price and its value in
use of the asset, which is measured by reference to discounted future cash flows. Recoverable amounts are esmated for
individual assets.
An impairment loss is charged to the statement of comprehensive income immediately.
Subsequent increase in the recoverable amount of an asset is treated as reversal of the previous impairment loss and is recognised
to the extent of the carrying amount of the asset that would have been determined (net of depreciaon) had no impairment loss
been recognised. The reversal is recognised in the statement of comprehensive income immediately.
(k) Employee Benefits
(i) Short term benefits
Wages, salaries, bonuses and social security contribuons are recognised as an expense in the financial year in which the associated
services are rendered by employees of the Instute. Short term accumulang compensated absences such as paid annual leave
are recognised when services rendered by employees that increase their entlement to future compensated absences, and short
term non-accumulang compensated absences such as sick leave are recognised when the absences occur.
(ii)Defined contribuon plan
The Instute contributes to the Employees’ Provident Fund, the naonal defined contribuon plan. The contribuons are charged
to the profit or loss in the period to which they are related. Once the contribuons have been paid, the Instute has no further
payment obligaons.
(l) Cash and Cash Equivalents
For purpose of the statement of cash flows, cash and cash equivalents comprise cash at bank, demand deposits and other short
term, highly liquid investments that are readily converble to known amounts of cash and which are subject to an insignificant
risk of changes in value. Cash and cash equivalents are stated net of fixed deposits pledged with banks for banking facilies.
40
NOTES TO THE FINANCIAL STATEMENTS
3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparaon of the financial statements requires management of the Instute to make judgements, esmates and assumpons
that affect the reported amounts of revenues, expenses, assets and liabilies, and the disclosure of conngent liabilies at the
reporng date. However, uncertainty about these assumpons and esmates could result in outcomes that could require material
adjustments to the carrying amount of the assets or liabilies affected in the future.
3.1 Judgements made in applying accounng policies
There were no crical judgements made by the Governors in the process of applying the accounng policies of the Instute that have
significant effect on the amounts recognised in the financial statements.
3.2 Key sources of esmaon uncertainty
The key assumpons concerning the future and other key sources of esmaon uncertainty at the reporng date that have a risk of
causing a material adjustment to the carrying amounts of assets and liabilies within the next financial year are discussed below.
a) Useful lives of property, plant and equipment
The Instute esmates the useful lives of property, plant and equipment based on the period over which the assets are expected
to be available for use. The esmated useful lives of property, plant and equipment are reviewed periodically and are updated
if expectaons differ from previous esmates due to physical wear and tear, technical or commercial obsolescence and legal or
other limits on the use of the relevant assets. In addion, the esmaon of the useful lives of property, plant and equipment are
based on internal evaluaon and experience with similar assets. It is possible, however, that future results of operaons could be
materially affected by changes in the esmates brought about by changes in factors menoned above.
The amount and ming of recorded expenses for any period would be affected by changes in these factors and circumstances.
A reducon in the esmated useful lives of the property, plant and equipment would increase the recorded expenses and decrease
the non-current assets.
(b) Impairment of receivables
The Instute provides for impairment of receivables based on an assessment of the recoverability of receivables. Impairment loss
is recognised where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management
specifically analysed historical bad debts, current economic trends and changes in payment terms when making a judgement to
evaluate the adequacy of the impairment loss on receivables. Where the expectaon is different from the original esmate, such
difference will impact the carrying value of receivables.
41
NOTES TO THE FINANCIAL STATEMENTS
4. PROPERTY, PLANT AND EQUIPMENT
2014
Cost
Leasehold
Premises
RM
Air
Computers
Furniture
Condioners and Soware and Fings
RM
RM
RM
Office
Equipment
RM
Office
Renovaon
RM
Work-inprogress
RM
Total
RM
659,532
49,530
265,902
64,590
107,020
50,627
-
1,197,201
-
-
26,645
-
4,480
-
4,804,214
4,835,339
659,532
49,530
292,547
64,590
111,500
50,627
4,804,214
6,032,540
At 1 January 2014
204,933
48,904
192,584
63,451
97,797
50,627
-
658,296
Depreciaon for
the financial year
13,191
626
36,011
982
5,572
-
-
56,382
At 31 December 2014
218,124
49,530
228,595
64,433
103,369
50,627
-
714,678
Net Book Value at
31 December 2014
441,408
-
63,952
157
8,131
-
4,804,214
5,317,862
At 1 January 2014
Addions
At 31 December 2014
Accumulated Depreciaon
(a) During the financial year, the Instute entered into a Sale and Purchase Agreement to acquire 2 units of corporate office suites
amounng to RM4,804,214 of which RM465,831 remain payable. The office suites are currently under construcon and are expected
to be completed in 2015.
(b) Leasehold premises located at Kompleks Maluri, Taman Maluri, comprise of 2 units of office lots. The leases will expire in the year
2077 and are free from encumbrances.
2013
Cost
Leasehold
Premises
RM
Air
Computers
Furniture
Condioners and Soware and Fings
RM
RM
RM
Office
Equipment
RM
Office
Renovaon
RM
Total
RM
659,532
49,530
250,716
65,216
103,590
50,627
1,179,211
Addions
-
-
49,959
-
3,430
-
53,389
Disposals/wrien off
-
-
(34,773)
(626)
-
-
(35,399)
659,532
49,530
265,902
64,590
107,020
50,627
1,197,201
191,742
45,150
210,682
61,579
91,367
50,627
651,147
13,191
3,754
16,675
2,498
6,430
-
42,548
-
-
(34,773)
(626)
-
-
(35,399)
At 31 December 2013
204,933
48,904
192,584
63,451
97,797
50,627
658,296
Net Book Value at
31 December 2013
454,599
626
73,318
1,139
9,223
-
538,905
At 1 January 2013
At 31 December 2013
Accumulated Depreciaon
At 1 January 2013
Depreciaon for the financial year
Disposals/wrien off
42
NOTES TO THE FINANCIAL STATEMENTS
5. TRADE RECEIVABLES
The Instute maintains an ageing analysis in respect of trade receivables only. The ageing of trade receivables as at the end of the
reporng period was:-
Current - 3 months past due not impaired
4 - 6 months past due not impaired
2014
RM
2013
RM
502,432
416,550
40,028
1,450
-
-
1,550
950
544,010
418,950
7 - 12 months past due not impaired
More than 12 months past due not impaired
The Instute closely monitors the receivables and they are neither past due nor impaired.
An allowance account in respect of trade receivables is used to record impairment losses. Unless the Instute is sasfied that
recovery of the amount is possible, the amount considered irrecoverable is wrien off against the receivable directly. During the
year, an amount of RM950 (2013: RM3,460) has been wrien off.
As at the end of the reporng period, there was no indicaon that the trade receivables are not recoverable.
6. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS
2014
RM
2013
RM
Other receivables
33,689
72,700
Deposits
13,240
13,240
Prepayments
82,181
34,451
129,110
120,391
An allowance account in respect of other receivables, deposits and prepayments is used to record impairment losses. Unless the
Instute is sasfied that recovery of the amount is possible, the amount considered irrecoverable is wrien off against the other
receivable, deposits and prepayments directly.
As at the end of the reporng period, there was no indicaon that the other receivables, deposits and prepayments are not recoverable.
7. INVENTORIES
At cost
Books and journals
2014
RM
2013
RM
91,679
142,870
403,892
204,728
35,910
37,822
850
1,144
Recognised in profit or loss:
Inventories recognised as cost of sales
Inventories recognised as administrave and operang expenses
Wrien off during the financial year
Management tested the inventories for impairment and wrote off the related inventories, which resulted in a loss of RM850
(2013: RM1,144) due to expired stocks.
43
NOTES TO THE FINANCIAL STATEMENTS
8. CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the statement of cash flows comprise the following:-
Cash and bank balances
Fixed deposits with licensed commercial banks
2014
RM
2013
RM
466,365
467,642
822,982
4,570,358
1,289,347
5,038,000
The Instute has a bank overdra facility with a credit limit of RM50,000 (2013: RM50,000). Included in fixed deposits with licensed
commercial banks is an amount of RM50,000 (2013: RM50,000) held as collateral for the credit facility.
The currency profile of the cash and cash equivalents is as follows:-
Ringgit Malaysia
United States Dollar
2014
RM
2013
RM
1,189,506
5,037,862
99,841
138
1,289,347
5,038,000
9. RESEARCH FUND
The objecves of the research fund are:(i) To parcipate in research acvies in the area of internal auding with members, corporate bodies, the public, instuons
of higher learning and other professional bodies;
(ii) To avail to interested pares (members, the public, instuons of higher learning, etc.) resource materials for research at the
IIA Secretariat. These resources can be in the form of journals, arcles, audio-visual media, etc. and
(iii) To make available research grants or assistance to interested pares to carry out research to promote the internal audit profession.
10. DEFERRED TAX LIABILITIES
The components and movements of deferred tax liabilies during the financial year which arises due to ming difference between
accelerated capital allowance as compared to depreciaon are as follows:-
RM
At 1 January 2013
15,891
Recognised in profit or loss
-
At 31 December 2013
15,891
Recognised in profit or loss (Note 18)
(3,463)
At 31 December 2014
12,428
11. TRADE PAYABLES
The average trade credit term granted to the Instute is 60 days. (2013: 60 days)
The currency profile of the trade payables is as follows:-
2014
RM
Ringgit Malaysia
United States Dollar
44
2013
RM
19,414
6,735
-
2,157
19,414
8,892
NOTES TO THE FINANCIAL STATEMENTS
12. OTHER PAYABLES AND ACCRUALS
2014
RM
2013
RM
Other payables
491,741
38,842
Accruals
197,920
297,282
689,661
336,124
2014
RM
2013
RM
Entrance fees and subscripons
904,026
867,359
Seminar and conference income
4,769,318
4,031,418
Cerficaon income
549,130
697,351
Quality Assessment Review fees
627,212
335,875
6,849,686
5,932,003
2014
RM
2013
RM
500,647
499,009
2,924,563
2,486,196
395,217
398,996
13. REVENUE
14. COSTS
Members' acvies
Seminars and conferences
Cerficaon expense
Quality Assessment Review
63,659
39,555
3,884,086
3,423,756
2014
RM
2013
RM
15. OTHER INCOME
Income from sales of Instute's publicaons and books, etc
MITI grant
Miscellaneous
114,253
69,214
-
48,000
35,791
20,890
150,044
138,104
16. FINANCE INCOME
The finance income wholly relates to interest income arising from fixed deposits.
45
NOTES TO THE FINANCIAL STATEMENTS
17. PROFIT BEFORE TAXATION
Profit before taxaon has been determined aer charging amongst other items the following:-
2014
RM
2013
RM
Audit fees
- Current
- Prior year
Bad debts wrien off
Depreciaon
20,000
15,000
3,000
-
950
3,460
56,382
42,548
850
1,144
-
104,130
Finance charges
25,204
293,245
Office rental
33,600
32,100
1,734,200
1,559,143
19,038
8,864
Inventories wrien off
Legal fees
Personnel expenses (including key management personnel):
- Staff costs
Realised loss on foreign exchange
18. TAXATION
2014
RM
2013
RM
Profit before taxaon
854,574
667,366
Tax at Malaysian statutory tax rate of 25%
213,644
166,842
3,188
3,298
-
(13,464)
(3,022)
11,574
206
-
214,016
168,250
Expenses not deducble for tax purpose
Income not subject to tax
Under/(Over) provision in prior year
Effect in reducon in tax rate
Tax expense for the financial year
A reconciliaon of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at
the effecve income tax rate of the Instute is as follows:-
2014
RM
Unulised tax losses
(Taxable)/deducble temporary differences
Potenal deferred tax assets not recognised at 24%
(2013: 25%)
46
2013
RM
51,777
72,294
-
-
51,777
72,294
12,426
17,351
NOTES TO THE FINANCIAL STATEMENTS
19. FINANCIAL INSTRUMENTS
(a) Classificaon of financial instruments
Financial assets and financial liabilies are measured on an ongoing basis either at fair value or at amorsed cost. The
significant accounng policies in Note 2.3 describe how the classes of financial instruments are measured, and how income
and expense, including fair value gains and losses, are recognised. The following table analyses the financial assets and
liabilies in the statement of financial posion by the class of financial instruments to which they are assigned, and therefore
by the measurement basis:
At 31 December 2014
Note
Financial Assets
Loans and
Receivables
RM
Trade receivables
5
544,010
Other receivables, deposits and prepayments
6
129,110
Cash and cash equivalents
8
1,289,347
Total financial assets
1,962,467
Financial Liabilies
at amorsed cost
RM
Financial Liabilies
Trade payables
11
19,414
Other payables and accruals
12
689,661
503,222
Advance subscripons and fees
Total financial liabilies
1,212,297
At 31 December 2013
Note
Financial Assets
Loans and
Receivables
RM
Trade receivables
5
418,950
Other receivables, deposits and prepayments
6
120,391
Cash and cash equivalents
8
5,038,000
Total financial assets
5,577,341
Financial Liabilies
at amorsed cost
RM
Financial Liabilies
Trade payables
11
8,892
Other payables and accruals
12
336,124
Advance subscripons and fees
458,184
Total financial liabilies
803,200
47
NOTES TO THE FINANCIAL STATEMENTS
19. FINANCIAL INSTRUMENTS (Connued)
(b) Financial Risk Management
The Instute seeks to manage effecvely the various risks namely credit, interest rate, liquidity and foreign exchange risks, to
which the Instute is exposed to in its daily operaons.
(i) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counter party default on its
obligaons. The exposure to credit risk arises primarily from trade and other receivables. Trade and other receivables
presented in the statement of financial posion are net of allowances for impairment losses, esmated by management
based on prior experience and the current economic environment.
The exposure to credit risk is monitored by the management on an ongoing basis and the management does not expect
any counterparty to fail to meet its obligaons. The carrying amounts of the financial assets recorded on the statement
of financial posion at the end of the reporng period represent the maximum exposure of the Instute to credit risk in
relaon to financial assets. No financial assets carry a significant exposure to credit risk other than those disclosed in the
notes to the financial statements.
There are no concentraons of credit risk for the financial assets.
(ii) Liquidity risk
The Instute acvely manages its debt maturity profile, operang cash flows and the availability of funding so as to
ensure that all funding needs are met. As part of this overall prudent liquidity management, the Instute maintains sufficient
levels of cash and cash equivalents to meet its working capital requirements.
(iii) Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.
The Instute has transaconal currency exposures arising from fees payable to The Instute of Internal Auditors Inc. that
are denominated in a currency other than the funconal currency of the Instute.
The risk is migated by a US dollar denominated account held by the Instute at one of the commercial banks.
Exposure to foreign currency
The following table details the exposure of the Instute at the reporng date to currency risk arising from recognised
financial assets and liabilies denominated in a currency other than the funconal currency of the Instute. For presentaon
purposes, the amounts of the exposure are shown in Ringgit Malaysia, translated using the spot rate at reporng date:
2014
RM
US Dollar
Cash
Trade payables
2013
RM
99,841
138
-
(2,157)
Sensivity Analysis
The following table indicates the approximate change in the net profit and equity of the Instute in response to reasonable
possible changes in the foreign exchange rates to which the Instute has significant exposure at the reporng date,
assuming all other variable risk variables remained constant. Other components of the equity would not be affected by
changes in the foreign exchange rate:Increase/(Decrease)
RM Weakens (10%)
RM Strengthens (10%)
Net profit for the financial year
2014
RM
2013
RM
2014
RM
2013
RM
(9,984)
202
9,984
(202)
The sensivity analysis assumes that the change in foreign exchange rates had been applied to re-measure those financial
instruments held by the Instute which expose the Instute to foreign currency risk at the reporng date.
(c) Fair Values
(i) Recognised financial instruments
The carrying amounts of financial assets and financial liabilies of the Instute reasonably approximate their fair values due
to the relavely short term nature of these financial instruments.
(ii) Unrecognised financial instruments
There were no unrecognised financial instruments as at 31 December 2014.
48
NOTES TO THE FINANCIAL STATEMENTS
20. RELATED PARTIES
For the purposes of these financial statements, pares are considered to be related to the Instute if the Instute has the ability,
directly or indirectly, to control the party or exercise significant influence over the party in making financial and operang decisions,
or vice versa, or where the Instute and the party are subject to common control or common significant influence. Related pares
may be individuals or other enes.
Related pares also include key management personnel defined as those persons having authority and responsibility for planning,
direcng and controlling the acvies of the Instute either directly or indirectly. The key management personnel include all the
Governors of the Instute, and certain members of senior management of the Instute.
The Instute has related party relaonship with its Governors.
Significant related party transacons
Related party transacons have been entered into in the normal course of business under negoated terms. The significant related
party transacons of the Instute are shown below:
Fees paid to Governors for services rendered in income generang projects
2014
RM
2013
RM
94,114
25,920
49
STATEMENT BY THE GOVERNORS
We, PHILIP SATISH RAO and DATO’ SHABARUDDIN BIN IBRAHIM, being two of the Governors of THE INSTITUTE OF INTERNAL
AUDITORS MALAYSIA (the “Instute”), do hereby state that in the opinion of the Governors, the accompanying financial
statements are drawn up so as to give a true and fair view of the financial posion of the Instute as at 31 December 2014 and of
the results of the operaons, changes in equity and cash flows of the Instute for the financial year ended on that date in
accordance with the Malaysian Financial Reporng Standards, Internaonal Financial Reporng Standards and the provisions of the
Companies Act, 1965 in Malaysia.
Signed on behalf of the Board of Governors in accordance with a resoluon of the Governors on 30 April 2015.
......................................................................................
......................................................................................
PHILIP SATISH RAO
DATO’ SHABARUDDIN BIN IBRAHIM
Governor
Governor
Kuala Lumpur
Date : 30 April 2015
50
STATUTORY DECLARATION
I, DR. NURMAZILAH DATO’ MAHZAN, being the Governor primarily responsible for the financial management of THE INSTITUTE OF
INTERNAL AUDITORS MALAYSIA, do solemnly and sincerely declare that the accompanying financial statements are to the best of my
knowledge and belief, correct, and I make this solemn declaraon conscienously believing the same to be true, and by virtue of the
provisions of the Statutory Declaraons Act, l960.
......................................................................................
DR. NURMAZILAH DATO’ MAHZAN
Governor
Subscribed and solemnly declared by the abovenamed at Kuala Lumpur in the Federal Territory on 30 April 2015.
Before me,
......................................................................................
Commissioner for Oaths
51
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF
THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA
Report on the Financial Statements
We have audited the financial statements of The Instute of Internal Auditors Malaysia (the “Instute”), which comprise the
statement of financial posion as at 31 December 2014 of the Instute, the statement of comprehensive income, statement of
changes in equity and statement of cash flows of the Instute for the financial year then ended, and a summary of significant
accounng policies and other explanatory informaon, as set out on pages 35 to 49.
Governors’ Responsibility for the Financial Statements
The Governors of the Instute are responsible for the preparaon of financial statements so as to give a true and fair view in
accordance with the Malaysian Financial Reporng Standards, Internaonal Financial Reporng Standards and the requirements of
the Companies Act, 1965 in Malaysia. The Governors are also responsible for such internal controls as the Governors determine are
necessary to enable the preparaon of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with approved standards on auding in Malaysia. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the Instute’s
preparaon of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effecveness of the Instute’s internal controls. An audit also
includes evaluang the appropriateness of accounng policies used and the reasonableness of accounng esmates made by the
Governors, as well as evaluang the overall presentaon of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial posion of the Instute as at 31 December 2014 and
of its financial performance and cash flows for the financial year then ended in accordance with the Malaysian Financial Reporng
Standards, Internaonal Financial Reporng Standards and the requirements of the Companies Act, 1965 in Malaysia.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that in our opinion, the accounng and
other records and the registers required by the Companies Act, 1965 in Malaysia to be kept by the Instute have been properly kept
in accordance with the provisions of the Companies Act, 1965 in Malaysia.
Other Maers
This report is made solely to the members of the Instute, as a body, in accordance with Secon 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the contents of this report.
......................................................................................
......................................................................................
Baker Tilly Monteiro Heng
Tan Ban Ta
No. AF 0117
Chartered Accountants
No 3099/03/16(J)
Chartered Accountants
Kuala Lumpur
Date: 30 April 2015
52
PAST PRESIDENTS, HONORARY & FELLOW MEMBERS
PAST PRESIDENTS
1978/1979
1979/1980
1980/1981
1981/1982
1982/1983
1983/1984
1984/1985
1985/1986
1986/1987
1987/1988
1988/1990
1990/1992
1992/1993
Peter Chieng Ing Mui
Louis Loh Kam Choon
Lum Seng Yip
Cheng See
Lee Siew Kuan
Richard Chieng Ing Ku
Rick Siew
Kay Yew Chye
Margaret Chin Cheng Soon
Jeyaratnam Velupillai
Lynn T Kulasingham
Azhari Mohamed
Abdul Razak Abu Bakar
1993/1994
1994/1996
1996/1997
1997/1998
1998/2000
2000/2002
2002/2004
2004/2006
2006/2008
2008/2009
2009/2011
2011/2013
2013/2014
Stanley Yap Onn Nam
Lim Kien Chai
Vijayam Nadarajah
Mathuraiveran Marimuthu
Wong Yew Sen
Devanesan Evanson
The late Abd Razak Haron
Wee Hock Kee
Famah Abu Bakar
Walter Sandosam
The late Hashim Mohammed
Dan Josephine Low Suet Moi
Ranjit Singh A/L Taram Singh
HONORARY MEMBERS
Tan Sri Datuk Dr. Hadenan A. Jalil
Dato’ Mohammed Azlan Hashim
Dato’ Yusli Mohamed Yusoff
Tan Sri Dato’ Sea Haji Ambrin Buang
FELLOW MEMBERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Jeyaratnam Velupillai
Stanley Yap Onn Nam
Lim Kien Chai
Margaret Chan Cheng Soon
Kanason Pothiniker
Peter Chieng Ing Mui
Mathuraiveran Marimuthu
David McNamee
Ho Chai Suan
Lee Siew Kuan
Farid Chia Abdullah
Vijayam Nadarajah
Wong Yew Sen
Famah Abu Bakar
Young Tat Yong
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
Nesarajah A/L Chelliah
Barry Leithhead
Devanesan Evanson
Edmund Low Ying Leong
Stanley Y Chang
Lou Swee You
Suresh Maria Alexander
Jean-Pierre Garie
Dato’ Shabaruddin Ibrahim
Wee Hock Kee
Woo Yoke Meng
Walter Sandosam
Prof Dan Dr Hasnah Haron
Puan Sri Dan Dr Mary Lee Siew Cheng
53
NATIONAL CONFERENCE 2014
INNOVATE TO VALUE ADD
For a profession to remain relevant, it has to embrace changes in a dynamic environment.
Constant innovation and adaptation will be the factor in adding value to the key stakeholders.
Innovation starts with the right people and engaging them to explore and implement creative new ideas
to enhance customer value. Practitioners are therefore called to continuously adopt this innovation culture
to keep up on the evolving arena of governance, risk management and control.
Address: 160-3-3, Kompleks Maluri, Jalan Jejaka, Taman Maluri, 55100 Kuala Lumpur, Malaysia.
Tel: (603) 9282 1148
Fax: (603) 9282 1241
E-mail: ijdm@po.jaring.my
Website: www.iiam.com.my