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Audit Committee Leadership is Key to Effective Corporate Governance

 

20/03/2014

 


Johan addressing the audience in the first plenary session. Seated (L- R) Martin Giles Manen, Chairman, Audit Committee of two public listed companies; Wan Ahmad Ikram Wan Ahmad Lotfi, Chief Financial Officer, Perbadanan Insurans Deposit Malaysia (PIDM); Lee Tuck Heng, Chairman, Audit and Assurance Standard Board, MIA.

 

President of the Malaysian Institute of Accountants (MIA), Johan Idris urged audit committee members to improve their level of accountability as directors, and in management roles through leadership, especially so in these volatile and ever changing economic climate. He said this at the second Audit Committee Conference in Kuala Lumpur today, an event co-organised with the Institute of Internal Auditors (IIA) Malaysia.”Audit committee members are entrusted by stakeholders in identifying, addressing and managing risks in their respective organisations and companies. This can be effectively achieved by implementing good corporate governance standards and best practices which are instrumental in promoting values of integrity, transparency, and accountability within the organisation,” said Johan.

Johan added that, though the role of the auditors in upholding the integrity of the financial reporting system has received minimal scrutiny in these testing times, it would still be essential to have in place a vigilant and vigorous audit profession. He urged the audit committee to regularly monitor if there is a need to tighten internal controls and risk management in the organisations. The audit committee should also act as an independent first line of defence against any poor corporate governance and regular controls.

“Integrity and an ethics-based organisation culture would help instil confidence in our corporate financial reporting, and will be a strong deterrent to fraudulent and irregular practices. In that sense, I am confident that the audit committee is well positioned in addressing the increased challenges and expectations imposed on them,” he said.

Themed `Stepping Up For Better Governance’, the conference comes ahead of the much anticipated revamp of the auditor report standards set by the International Auditing and Assurance Standards Board (AASB) scheduled for the fourth-quarter 2014.

This year’s conference focussed on increasing director’s awareness of current developments and issues relating to the role of audit committee in assuring better corporate governance and enhancing the competencies of audit committees. The one-day conference attracted over 300 participants comprising mainly of senior audit committee members, company directors, governance professionals, business leaders, internal and external auditors and other audit and finance professionals.

Key speakers at the conference included Paul J. Sobel, Chairman of Board, IIA Global USA; Martin Giles Manen, Chairman, Audit Committee Chairman for several public linked companies; Megat Mizan Nicholas Denney, Member of Board of Governors, Malaysian Institute of Corporate Governance and Datuk Mohd Nasir Ahmad, Chairman of Audit Committee, SME Development Bank Malaysia Berhad.

 


Over 300 participants attended the conference

Read more at http://www.mia.org.my/new/news_details.asp?ID=3784#Rc3dJsXzcx5kyjcz.99