Corporate Governance, Internal Audit Services, & Risk Management Advisory Malaysia
The Malaysian Code on Corporate Governance (“MCCG”) is issued by the Securities Commission Malaysia on 26 April 2017 with immediate effect and listed issuers are required to report their application of their corporate governance (“CG”) practices in their annual reports.
Consequent to the issuance of the MCCG, Bursa Malaysia reviewed its Listing Requirements to reflect the new CG disclosure and reporting requirements under the Comprehend, Apply and Report (“CARE”) approach as well as the enhancement to the oversight role of audit committee in respect of their internal audit functions.
It can be seen that in the recent years, authorities and regulators are emphasising on the importance of a sound CG structure in order to mitigate major financial scandals and move forward for the economics of Malaysia. As one of the leading internal audit firm in Malaysia, we offer various services revolving around CG to assist your business as follow:
Core of Corporate Governance – Internal Audit
Internal audit is always a key component in corporate governance. In recent years, there is even a rising opportunity to enhance the process by incorporating AI elements with internal audit. However, as the idea is still an emerging concept, professional chartered accountants at IBDC are still your preferred choice. Our core competence in corporate governance has enabled us to go straight to the root of the issues affecting your organisation. Our risk-based approach will focus on identifying the inherent risks within the control environment, and assess the operating effectiveness of the client’s internal controls in accordance with the relevant guidelines stated in International Professional Practices Framework 2017.
Our team members will work closely with you to provide sound improvement advises that are genuine value-added, and closely follow-up with you on the implementation to ensure you gain the competitive edge.
Enterprise Risk Management (“ERM”)
Risk-taking is never a bad thing, but a good approach is you should always take calculated risks, and having a structured risk management framework is crucial to the improvement of your enterprise and shareholder’s value.
Our Enterprise Risk Management (ERM) framework will assists you with risk identification, assessment, mitigation and monitoring measures that would assist you to reduce the risk down to an acceptable and reasonable level. In addition, we provide recommendations of improvement via fostering risk awareness and its consequences among your team members in order to enhance your business performance and efficiency.
Corporate Governance Reporting
In conjunction to the introduction of MCCG by the Securities Commission Malaysia, Bursa Malaysia has also introduced the CARE approach of CG reporting requirement under their Listing Requirements.
Our team of professional consultants are able to assist you in appraising your company’s CG framework in accordance to the prescribed format as set out by the Bursa Malaysia, based on the MCCG’s 3 principles, 12 intended outcome and 36 practices.
Our approach are guided by the Corporate Governance Guide issued by the Bursa Malaysia, and ensuring your CG reporting complies to the Bursa Malaysia’s Listing Requirements.
Corporate Governance Review
Our corporate governance review will be unique and customised to each and every client’s needs depending on factors such as the organisation’s ownership, legal structure, regulatory environment, culture and the outcomes sought in undertaking a review.
Areas of focus in a corporate governance review may include but not limited to:
- Determining if the current corporate governance system adds value or burdens the organisation;
- Addressing specific issues of concern with the current corporate governance structure such as number or type of board committees;
- Alignment of the corporate governance system with an existing or new strategic direction;
- Adoption of leading practice governance in terms of policies and procedures (documentation review);
- Compliance with national and international codes and standards.
Our review will also provide recommended measures to ensure that a sound corporate structure and practices are in place.
Internal Control Review (“ICR”)
Often confused with Internal Audit, ICR is an overall assessment of the internal control system and its adequacy of each business area in an organisation to address the relevant risks. Through control review, an organisation’s resources are directed, monitored, and measured in an effective manner.
The Committee of Sponsoring Organisations of the Treadway Commission (“COSO”) framework defines internal control as “a process effected by an entity’s Board of Directors (“Board”), management and other personnel, designed to provide reasonable assurance of achieving effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.
ICR assumes greater importance in the light of current economic downturn. Monitoring and assessment of internal controls across various functions is performed through continuous evaluations to ensure the implemented internal control system is effective as intended by the Board. The assessment facilitates identification of internal control deficiencies for further corrective actions.
马来西亚企业治理准则（“Malaysian Code on Corporate Governance”或“MCCG”）是由马来西亚证券委员会（“Securities Commission Malaysia”）于2017年4月26日发布且即日生效，上市集团须在其年度报告中公布它们所采纳的企业治理方案。
其次，马来西亚证券交易所（“Bursa Malaysia”）也修改了其上市需求条文，以响应新的马来西亚企业治理准则，按照“理解、践行、公布”（“Comprehend, Apply and Report”或“CARE”）方式而成立了一个新的公布需求，以及提升了审计委员会在内部审计职能方面所执行的监督任务。
内部审计是IBDC在企业治理方面的核心竞争领域之一。因此，我们能够快速并准确地对症下药。我们采用基于风险的方式，侧重于识别内部控制环境中的固有风险，并根据2017年国际专业实践框架（“International Professional Practices Framework 2017”）中所述的相关指南为客户评估他们的内部控制系统的运营有效性。
我们的评估方式将根据马来西亚证券交易所发布的“公司治理指南”（“Corporate Governance Guide”）为指导，以确保您的企业治理报告将会符合马来西亚证券交易所的上市需求。
特雷德韦委托赞助组织委员会（“Committee of Sponsoring Organisations of the Treadway Commission”或“COSO”）框架将内部控制定义为 “由一个组织的董事会，管理层以及其他相关人员所影响的一个流程，旨在为运作的有效性和效率，财务报告的可靠性，以及为适用法律法规的遵守情况提供合理的保障。”