Decision of the Disciplinary Committee of the Malaysian Institute of

NOTICE TO MEMBERS
Decision of the Disciplinary
Committee of the Malaysian
Institute of Accountants
NOTICE 1
The Council of the Malaysian Institute of
Accountants hereby gives notice that on 5
November 2008, after due inquiry by the
Disciplinary Committee of the Institute,
Low Cheng Kong (Membership No: 1124)
was found to have contravened:
1 By-Law A-1.2 of the Institute’s By-Laws
(On Professional Conduct and Ethics)
[Revised January 2002] dealing with
Fundamental Principles which states
that: “A member shall carry out his professional work with proper regard for the
technical and professional standards expected of him as a member and shall not
undertake or continue any professional
assignment that the member is not professionally competent to perform unless
he obtains such advice and assistance as
will enable the member to complete the
assignment in a competent, efficient and
timely manner.”
which states that: “A member shall not
commit any acts discreditable to the
profession which shall include but is not
confined to the following…”
The Disciplinary Committee has found
that Low Cheng Kong (Membership
No: 1124) has thereby committed an act
amounting to “unprofessional conduct”
within the meaning provided under Rule
2 of the Malaysian Institute of Accountants (Disciplinary) Rules 2002 [P.U.(A)
229/2002] (“the MIA (Disciplinary)
Rules”).
The Disciplinary Committee in exercise
of its powers under Rule 18(3) of the MIA
(Disciplinary) Rules has imposed upon the
member a fine of RM2,000 and ordered
the member to pay the Institute the sum of
RM2,000 in respect of costs and expenses
of and incidental to the disciplinary hearing before the Disciplinary Committee and
the investigation conducted by the Investigation Committee.
The decision of the Disciplinary Committee took effect on 3 December 2008. AT
and/or;
NOTICE 2
2 By-Law A-2.3 of the Institute’s By-Laws
(On Professional Conduct and Ethics)
[Revised January 2002] dealing with
Integrity and Objectivity which states
that: “No member shall make, prepare,
attest to or certify any statement which
he knows to be:
(a) false, incorrect or misleading; or
(b) open to misconstruction by reason
of any error, omission or suppression a
material fact or otherwise”
The Council of the Malaysian Institute of
Accountants hereby gives notice that on 5
November 2008, after due inquiry by the
Disciplinary Committee of the Institute,
Au Tai Wee (Membership No: 4302) was
found to have contravened:
and/or;
3 By-Law A-3.1 of the Institute’s By-Laws
(On Professional Conduct and Ethics) [Revised January 2002] dealing with
Professional Competence and Due
Care which states that: “Every member
shall continually improve his professional services, keep his professional knowledge up-to-date, and bring due care and
diligence to bear upon the discharge of
his duties to clients or employers”
and/or;
4 By-Law A-8.2 of the Institute’s By-Laws
(On Professional Conduct and Ethics)
[Revised January 2002] dealing with
Acts Discreditable to the Profession
36
1 Paragraph 30 of MASB 11 [FRS
1272004], Consolidated Financial Statements and Investments in Subsidiaries,
with effect from 1 January 2000 and
applicable at the relevant time, which
states: “The results of operations of a
subsidiary disposed of are included in
the consolidated income statement until
the date of disposal which is the date on
which the parent ceases to have control
of the subsidiary. A subsidiary should
continue to be consolidated even if its
net assets are negative or the parent has
the intention to either liquidate or dispose of the subsidiary in the foreseeable
future. The difference between the proceeds from the disposal of the subsidiary
and the carrying amount of its assets less
liabilities, together with any goodwill, as
of the date of disposal is recognised in
the consolidated income statement as
the gain or loss on the disposal of the
subsidiary”
and/or;
2 By-Law 18-1 of the Institute’s By-Laws on
Professional Conduct and Ethics [prior
to 2002] dealing with Acts Discreditable to the Profession which states that:
“Acts discreditable to the profession or
“unprofessional conduct” includes gross
carelessness, neglect and incapacity in
the performance of professional duties
and impropriety in professional conduct.
A member shall not commit any acts discreditable to the profession …”
The Disciplinary Committee has found
that Au Tai Wee (Membership No: 4302),
has thereby committed an act amounting
to “unprofessional conduct” within the
meaning provided under Rule 43 of the Accountants Rules 1972.
The Disciplinary Committee in the exercise of its power under Rule 47 of the
Accountants Rules 1972, by writing under
the hand of its Chairman has imposed
upon the member a penalty of RM500 and
ordered the member to pay to the Institute
the sum of RM2,000 in respect of costs and
expenses of and incidental to the inquiry
held by the Disciplinary Committee and
the investigation held by the Investigation
Committee.
The decision of the Disciplinary Committee took effect on 28 November 2008. AT
ROSLI BIN ABDULLAH
Registrar
On behalf of the Council of the MIA
MASB proposes amendment
in measuring investments in
subsidiaries
The Malaysian Accounting Standards
Board (MASB) has released a proposed
amendment to FRS 1 First-time Adoption
of Financial Reporting Standards and FRS
127 Consolidated and Separate Financial
Statements for public comments. The proposed amendments contained in MASB
ED 60 are virtually identical to the International Accounting Standards Board amendments that were issued in May 2008.
The amendment to FRS 1 proposes to allow first-time adopters of the Financial Reporting Standards (FRS) framework to use
ACCOUNTANTS TODAY • March 2009
Notice to Members’
either the fair value or the carrying amount
under previous accounting practice to
measure the initial cost of investments in
subsidiaries, jointly controlled entities and
associates in the separate financial statements. Under the existing FRS 127, these
costs of investments have to be measured
either at cost or in accordance with FRS
139 Financial Instruments: Recognition
and Measurement. These aspects of FRS
127 had led to practical difficulties on transition to the FRS framework.
In-line with the proposed amendment
to FRS 1, MASB ED 60 also proposes to
remove the definition of ‘cost method’ in
FRS 127. The investor ie the parent would
present dividends as income without having to separate the retained earnings of the
subsidiary into pre-acquisition and post acquisition components but at the same time
test the related investment for impairment
to reduce the risk of overstatement.
In a statement issued recently, MASB’s
Executive Director Dr. Nordin Mohd Zain
said, “The proposed amendment to FRS 1
would provide welcomed relief to private
entities in Malaysia in determining the cost
of investments in subsidiaries, jointly controlled entities and associates when they
migrate from the Private Entity Reporting
Standards (PERS) framework to the FRS
framework. It is the Board’s aspiration that
when private entities migrate to the FRS
framework, they are able to do so without
undue cost and effort.”
MASB ED 60 also includes new requirements and guidance in measuring the cost
of investment of a new parent formed as
the result of a specific type of reorganisation. The proposals require the new parent
to measure the cost of its investment in the
previous parent at the carrying amount of
its share of the equity items of the previous
parent at the date of the reorganisation.
Interested parties, including the business
communities, are encouraged to study the
proposed amendments and provide feedback to MASB. The exposure period expires on 2 March 2009. The exposure draft is
available on MASB’s website at www.masb.
org.my. The public is encouraged to provide
their comments electronically through ED
Online on our website. Alternatively, copies
of MASB ED 60 are available free of charge
from the MASB office. AT
ACCOUNTANTS TODAY • March 2009
Scope of Interview for Audit/Liquidator Licence Application
1 Panel Members 2009/2010
The newly appointed MIA representatives in the Audit/Liquidator Licensing Interview
Panel 2009/2010 are:
n Sam Soh Siong Hoon
n Peter Lim Thiam Kee
n Chen Voon Hann
n Steven Lim Hoo Teck
n Mohd Afrizan Husain
n Abdul Halim Husin
n Datuk Gan Ah Tee
n Ken Puspanathan
The new Interview Panel 2009/2010 met on 5 November 2008 to revise the scope of
interview in light of the changing environment.
2 Core & Non-Core Areas
Following the latest developments in the accounting industry, the scope of interview
has been revised and divided into core and non-core areas, with core areas to carry more
weight in the overall assessment marks.
n Core areas — these are the knowledge and skills generally applicable to all auditors/
liquidators across a broad set of functionalities.
n Non-core areas — these are the more in-depth coverage of knowledge and skills in a
specific function or a particular role.
The number of interview questions from MIA representatives in the Panel is expected
to be in a range of 5 – 10 with an emphasis on core areas. Questions will be asked in English and candidates have the option to answer either in English or Malay.
3 Revised Scope of Interview
The revised scope of interview is as follows:
Audit Licence
Areas
Coverage
Core
By-Laws of the MIA
Section 110: Integrity
Section 120: Objectivity
Section 130: Professional Competence and Due Care
Section 140: Confidentiality
Section 150: Professional Behaviour
Section 210: Professional Appointment
Section 220: Conflict of Interest
Section 230: Second Opinion
Section 280: Objectivity – all services
Section 290: Independence
Auditing Standards (ISAs)
• different types of audit opinions under ISA 700 (Revised) and audit documentation
• including the latest on International Standards on Quality Control (ISQC)
FRS and the Private Entities Reporting Standards
Recommended Practice Guides (RPGs)
Companies Act provision (dealing with auditors and preparation of financial statements)
37
Notice to Members’
Areas
Non-Core
Coverage
Other By-Laws of the MIA (except for the By-Laws covered under core areas above) and aspects of the International Standards on Auditing, Review other Assurance and Related Services
Developments in the area of Anti-Money Laundering
International Educational Standards (IES) No. 8
Taxation — Self Assessment Framework including the appeal process
Public Rulings in tax matters of a general type
Unclaimed Monies Act provision
Current Developments of Interest in Malaysia
Liquidator Licence
Areas
Coverage
Core
By-Laws of the MIA
Section 110: Integrity
Section 120: Objectivity
Section 130: Professional Competence and Due Care
Section 140: Confidentiality
Section 150: Professional Behaviour
Section 210: Professional Appointment
Section 220: Conflict of Interest
Section 230: Second Opinion
Section 280: Objectivity – all services
Section 290: Independence
(d)Eligibility, appointment and resignation of approved company auditors
(Part VI, Division 1 and 2, Accounts
and Audit, e.g. Section 172);
(e) Duties and responsibilities of the directors and company secretaries (Part V,
Division 1 and 2, Management and Administration, e.g. Section 121, Section
122, Section 139 etc);
(f) Any related provisions as stated in the
Companies Act 1965 and Companies
Rules & Regulations 1966:
i) Part V, Division 3, Meetings and
Proceedings
ii) Part V, Division 4, Register of
Members
iii) Part V, Division 5, Annual Return
iv) Part VIII, Receivers and Managers
v) Part X, Winding Up and Liquidators
Securities Commission (SC)
Role of special administrators under various Acts applicable from time to time
(a)Various Acts and guidelines administered by the SC, together with the Malaysian Code on Corporate Governance
and the Capital Market Master Plan;
(b)Roles and responsibilities of the SC
and the Bursa Malaysia;
(c)Various licensing requirements under
the SC and latest developments involving Bursa Malaysia;
(d)Duties and responsibilities of Auditors
pursuant to Section 320 of the Capital
Market Services Act 2007;
(e)Current auditing and accounting issues, including fraud cases involving
financial irregularities.
Consultative paper issued by MIA or SSM dealing with insolvency practices or the general accounting landscape
Bank Negara Malaysia (BNM)
Non-Core
Technical knowledge of insolvency practices including Insolvency Guidance Notes (IGN) and winding up rules
Recent case laws with landmark decisions
Methods and precautions in asset disposal (fair pricing) and asset protection etc
Recommended Practice Guides (RPGs)
Note:
(a) This is the position as at October 2008. It is expected that these areas will evolve over time.
(b) It is not expected that you have to cover all these areas in each interview session.
(c) Same standards should apply for all interviewees without regard to their experience profile.
4 Interview Scope of SSM, SC & BNM
The Chairman of the panel is currently the Deputy Accountant General. The other panel members comprise representatives from Companies Commission of Malaysia (SSM),
Securities Commission (SC) and Bank Negara Malaysia (BNM).
Their scopes of interview have also been revised as follows:
Companies Commission of Malaysia (SSM)
(a)Qualifications of company auditors/liquidators under the Companies Act 1965 (Part
2, Administration of Act, e.g. Section 8, Section 9);
(b)Duties and responsibilities of auditors under the Companies Act 1965 (Part VI, Division 1 and 2, Accounts and Audit, e.g. Section 167, Section 172A, Section 174 etc);
(c)Reporting Framework under the Companies Act 1965 (Part VI, Division 1 and 2, Accounts and Audit, e.g. Section 166A, Section 169 etc);
38
(a) Roles and responsibilities of BNM;
(b) Duties and responsibilities of the auditors under Banking and Financial Institutions Act (BAFIA), Islamic Banking
Act, Takaful Act, Anti-Money Laundering Act, Insurance Act 1996 and Development of Financial Institutions Act
2002;
(c) Basic understanding of the financial
statements and the main risks of banking and insurance business;
(d) Basic understanding of the Garis Panduan governing banking and the insurance business issued by BNM. AT
For more information, please download the
complete Application Guideline from www.mia.
org.my/mia/firm/audit_licence.asp
ACCOUNTANTS TODAY • March 2009
Notice to Members’
Notice to Members
The Institute would like to contact the
following members. However as of 19
February 2009, we have not been able to
do so. We would be grateful if members
whose names are listed below or any
member who is able to provide us with
the contact numbers of the said members could contact Susan (03-2279 9200
extn. 149) or Vera (extn. 148) or Ruzlina
(extn. 398) of the Institute.
Mem. No
87
951
1159
1339
1369
1600
1722
1756
1938
1968
2111
2241
2661
3208
3484
3504
3576
3803
3837
4237
4324
4648
4696
4759
4904
4919
5162
5448
5468
5471
5543
5544
5622
5773
5910
6011
6098
6482
6487
6529
6544
6582
6698
6758
6842
6850
Member
Goh Choon Keng
Fadzilah Bt. Saad
Azian Zainal Abidin
Loh Yoong Fook
Mustapha Bin Hamat
Brodie James Harold
Foo Chee Nun
Little Robert Mcgill
Abdul Jalil Bin Abu Bakar
Lim Peng Leong
Low Hong Keng
Lai Kim Yan
Norhana Abu Bakar
Kee Lian Yong
Chong Kan Ming @ Liew Kan Ming
Ramahamirtam Karupaiah
Wong Kok Yee
Yip Soo San
Lee Siew Wei
Chew Hoy Ping
Khor Han Kong
Sothilingam A/L K. Subramaniam
Tan Huat Ngo
Sum Siew Fong
Fang Ai Lian
Wong Ting Hock
Ng Eng Hock
Kan Poh Yee
Kuan Chew Heng
Wong King Kheng
Chew Yuit Yoo
Chan Kwok Yin
Woo Kok Wah
Soo Cheng
Goh Swee Lee
Vanaja Muniappan
Lau Lay Har
Yeo Siew Moi
Sing Chui Boon
Badariah Bt Aziz
Lui Yoke Chew
Sri Nathan A/L Valemurugu
Young Sook Fun
Tan Keat Beng
Chai Wai Teck
Zainab Ali
ACCOUNTANTS TODAY • March 2009
6987
7082
7149
7166
7312
7381
7408
7472
7618
7825
7829
7859
8132
8173
8214
8290
8293
8311
8614
8623
8927
9226
9327
9394
9538
9717
10313
10321
10377
10455
10884
10899
11036
11198
11377
11392
11539
11604
11817
11919
12260
12298
12408
12415
12592
12746
12755
12838
13135
13261
13357
14240
14350
14431
14463
14632
14668
14724
Panir Selvam A/L Kannan
Viji George Ninan
Zulkhariah Bte Aman
Wan Rahimi Bin Wan Ab. Razak
Phai Yew Mun
Sivalingam A/L A. Balasingam
Abu Zaharoff Bin Abu Bakar
Fauziah Bt Md. Hasan
Raja Shahreen B Raja Othman
Hamizah Bte Hussein
Ruslina Bte Mamat
Lai Chee Chong
Norman Yap Pian Ming
Ng Chien Li
Lau Ping Jin
Azhar Bin Haji Abdul Samad
Ho Foong Peng @ Hoe Foong Peng
Ahmad Mustaffa Bin Abdul Manaf
Marina Bt Mohd Kassim
Lum Siew Keong
Tan Soon Kok
Anita Thomas A/P M.K. Thomas
Mangan Ak Ngandok
Soo Chong Yew
Lai Teck Voon
Hue Kok Kee
Teh Khuan Ying
Zolkifli Bin Ruslan
Abdul Hadi Bin Dato’ Hj Ibrahim
Manjit Singh A/L Hajander Singh
Zaidi Bin Ibrahim
Chong Chew Mun
Lock Wai Choong
Zarina Ab. Hamid
Mohd Azaman Bin Mohamad Tulis
Ahmad Sopian Bin Mohd Nor
Suhail Salim
Subramaniam A/L Sokayah
Gan Huoy Ching
Misni Bin Maskan
Yap Tai Teong
Hoon Choon Yen
Gan Hoon Lian
Yap Kok Ching
Logeswary Narayanasamy
Tan Meng Cheung
Menezes Andre James
Wan Azmi Bin Wan Abd Rahman
Nor Aniza Bte Hj. Sharif
Krishanan Attiappan
Loong Yeow Boon
Zaitun Binti Yahya
Arnizah Binti Hashim
Noor Azlina Binti Maon
Seah Leong Uoon
Lau Siew Cheng
Chow Wai Harn
Siau Kok Kiew
15225
15251
15902
15990
16201
16473
17059
17060
17578
17994
18014
18530
18575
18666
18726
18763
18773
18787
18950
19261
19347
19418
19723
19905
20245
20334
20658
20985
21018
21162
21167
22137
22348
23153
27125
27235
27430
27464
27484
27761
27833
27932
27950
27969
27985
28050
28107
28141
28163
28172
28192
28245
28379
28491
28526
28627
28645
28963
Nor Hairiah Binti Md. Top
Lee Ha Ping
Munir Bin Sheik Abdul Tawab
Law Shue Lin
Karenina Binti Syed Abdullah
Wang Soew Fong
Noorafidahwati Binti Mohamed Noh
Mazuan Bin Moaajam
Thong En You
Noor Haslina Binti Yusoff
Teoh Ban Chong
Rohaida Binti Kaharuddin
Teoh Hun Siang
Ahmad Rithauddin Bin Abdul Manaf
Nor Hafizah Binti Daud
Zubaidah Ani Binti Mohd Noor
Mazlizawati Binti Zulkipli
Nik Nazri Bin Nik Ismail
Zakiah Bt Yunus
Samir Bin Abu Bakar
Mazlina Binti Mohammad
Siti Atiqah Binti Mohd Yasin
Lee Huei Ping
Badrul Hisham Bin Sulaiman
Jaginder Singh A/L Gurcharan Singh
Murniyati Bt Ramli
Natasha H. Isaacs
Baharuddin Amin Bin Abu Bakar
Roslina Binti Abd Wahid
Shamsul Akmal Bin Abd. Aziz
Intan Shafinaz Binti Mohd Shariff
Norleda Binti Sapei
Khoo Chin Leng
Siaw Mo Wai
Nor Fadhilah Binti Mhd Khalili
Wong Cheah Ling
Noor Hadi Bin Mamat
Suziana Binti Zainal Abidin
Nazahiyah Binti Yaakob
Zahirudin Bin Mohammad Hanif
Hairul Fazilah Binti Mohd Ali
Ros Aniza Binti Mohd Shariff
Roslie Bin Rustam
Mohamad Najib Bin Othman
Norzaimie Bin Abdul Motalib @ Ismail
Lim Swee Aun
Surida Binti Shaharuddin
Noor Aza Bt Zainol Abidin @ Ab Hamid
Mohd.Noor Hamam Bin Saeman
Nor Hasnida Binti Hashim
Salwany Binti Abdol Rahaman
Adi Asmiza Binti Ab Somad
Ng Huey Har
Sabrina Binti Abdul Halim
Nor Hasliza Binti Mat Zin
Ida Aryatti Binti Basri
Nurul Aiman Binti Ahmad Ropie
Fatimah Azleena Binti Mohamad
39