PPC Meeting Highlights July 2, 2010
1. Concept paper on Audit / Liquidator Licensing Process
The meeting deliberated on the common reasons why candidates failed in the licence interview and the licensing framework in other countries such as in
Australia & Singapore. After deliberations, the meeting decided on the following: a) The PPC shall pro-actively pursue a change in the licensing framework (its processes and pre-requisite requirements) with the authorities. While waiting for a change to take place, the committee shall look into the measures on how to better prepare members for licence interview in this interim period; b) The Chair of APC and IPC shall look into the audit and liquidator licensing framework respectively. Once the proposals on revised licensing framework was accepted by its respective sub-committee members, it will then be compiled by the Secretary for an overall holistic deliberation at the next PPC meeting in
August. c) The proposal shall cover the de-coupling of audit & liquidator licence and the licensing renewal processes as well.
2. Revision of Practice Review Processes
The task force members from APC has agreed on certain framework, which the
Secretary is currently compiling before arranging for a meeting with Practice
Review Committee (PRC). It remained a target to finalise the PR framework jointly with PRC before the next AGM in Sept 2010.
3. Articles in Accountants Today and Newspaper
The meeting decided on the following: a) There will not be a permanent weekly column where PPC is committed to submit articles on a weekly basis; b) PPC shall identify topic of the month from time to time and then source for writer of the article for publication at newspaper / Accountants Today.
4.
Networking Trip to India
The networking trip has been postponed to Aug 30-31 and the circular has been sent to all MIA members inviting their participation.
5. MIA-ACCA Forum
The Secretary reported that the ‘ Audit Roundtable: Restating the Value of
Audit ’ is confirmed to be held on Sept 22. However, the number of invited guests

is limited to 50 instead of 100 as previously mentioned as there were budget constraints from the sponsor, i.e. the ACCA.
6. Capital Market Working Group (CMWG)
The meeting approved the proposed terms of reference for CMWG as follows: a) To serve as key liaison between the Institute and regulators (i.e. Securities
Commission and Bursa Malaysia) on capital market related matters; b) To consider practical problems faced by members relating to the application and compliance with the regulations of the capital market and made recommendations to the relevant authorities; c) To formulate and provide guidance notes on the application of auditing and accounting standards in various aspects of capital market practice ; d) To consider and recommend principles of good practice on issues not covered by AASB and FRSIC.
7. Revised Sample Template of Bank Confirmation Letter
The meeting was informed on the difference between the existing and revised sample template of bank confirmation letter and the addition items included are as follows: a) There will be a list of designated contact person(s) for bank confirmation letter from various banks (the contact person list will be provided by ABM as agreed in an earlier meeting); b) Company Number will be provided in the sample template for ease of reference; c) The sample template will be reformatted to make it more user-friendly and thus encourage the banks in using the reply template sent to them rather than typing the reply template again. Furthermore, a softcopy will also be uploaded to the web for bankers’ convenience just in case they need more space for providing the details; d) A deadline for bank confirmation letter will be stated in the letter rather than leaving it open-ended as per the existing template.
8. Resolutions Proposed during the Last MIA Annual General Meeting (AGM)
The meeting deliberated on the four resolutions proposed for adoption at the last
AGM on Sept 12, 2009. Three out of four resolutions was withdrawn after a meeting with the President of MIA and the then Chairman of PPC, Mr Billy Kang in September last year.
9. Report from Sub-committee Chairs
Audit Practice Sub-committee (APC) i. Updates on the benchmarking exercise

Currently there are two batches of Community of Practices (CoPs) in KL and one batch of CoP in Johor. The next target CoP is from Penang. ii. Audit Oversight Board (AOB)
Members’ concerns have been addressed in a recent dialogue with AOB in
April 2010. iii. No frill audit and taxation courses
There are two volunteers each for the taxation & audit courses, and the
MPDC is currently working on the programme. The Chairperson requested for separate recognition for these speakers where possible. iv. Professional Indemnity Insurance (PII)
PPC has decided to organise evening talk or publish article on PII rather than having a separate task force for PII. v. ISQC 1 Non-compliance counselling session
A counselling session with approximately 20 members who have indicated non-compliance of ISQC 1 in their Form M1(A), will be conducted after the audit peak season. vi. Proposed Guidance Notes to the Self-assessment Checklist for the purpose of audit licence renewal
The proposed Guidance Notes will be incorporated into the revised practice review framework. vii. Networking trip to Singapore to study the audit exemption impact
The PPC decided to KIV the suggestion from APC on the networking trip to
Singapore to study the audit exemption impact on the Singapore accountancy profession, until it has become an issue in Malaysia. viii. Letter by SSM to Company Director
The APC was not satisfied with the design of the questionnaire sent by SSM to Company Directors on reasons for resignation of their existing auditors.
APC has decided to bring this issue to the next Corporate Practice
Consultative Forum (CPCF) meeting with SSM in July. ix. Request for ISQC workshops
There were requests from members / branches for organising more ISQC workshops in Ipoh, Johor and Sabah. The MPDC has been duly informed on the requests. x. ISQC Certification
The APC has organised a presentation from ISO consultants who could assist member firms in obtaining the ISQC certification. The Chair of APC has decided not to pursue the ISQC certification at the Institute level, but rather member firm should pursue it on their individual basis if they see a merit in it.

xi. WCOA Grant from MATRADE
MATRADE has re-opened the application for the export service grant.
Applicants can use this grant to attend the WCOA at a 50% discount rate.
However, MATRADE has yet to give a black and white on the approval. xii. IFRS for SMEs
APC member reckoned that SMEs should embrace the IFRS for SMEs if this is to be introduced in Malaysia as the conversion to full IFRS at a later stage will be less painful when the SME is ready to go for listing. This matter will be further discussed in the next APC meeting.
Insolvency Practice Sub-committee (IPC) xiii. Proposed Membership, Objectives and Activities of the Insolvency
Practitioners Association of Malaysia (IPAM)
There will be a general meeting among the 20 protem members to elect the first batch of council members before the membership could be opened to others. The majority of council members will be the licensed members, i.e. practitioners with valid liquidator licence. After the first batch of council members have been elected, IPAM will make a formal request to MIA to provide the necessary support for its operations. xiv. Task Force for Decoupling of Audit and Liquidator Licence
A task force has been formed to look into the possible de-coupling of the audit and liquidator licence with representatives from Official Receiver, SSM and BNM. The Chair of the Task Force is Dato’ Gan.
There were request from PPC member to specify a representative from MIA.
Dato’ Gan should be able to double-up as the PPC’s representative in this
Task Force. xv. Dialogue with Authorities
A ‘Checklist on Submission of Application for Tax Clearance Letter’, as a result of the last meeting with authorities on ‘Closing of Business’, was distributed to PPC members, for their information.
Taxation Practice Sub-committee (TPC)
TPC has not met since the last meeting in Feb 2010.
The memorandum proposed to Council for submission to Ministry of Finance
(MOF) on recognition of post budget seminars organised by MIA, MICPA and
MAICSA has been rejected by the Council who is of the opinion that each professional body should pursue the recognition on their own. MAICSA and
MICPA have been duly informed of the status and they have agreed to submit the memorandum separately.

10. Members Engagement Sessions (MES) 2010
The Secretary reported that the dates for MES in 6 locations are confirmed and the secretariat is in the midst of finalising the venue for MES 2010.
11. Any other matters
Expansion of HRDF Scope – Mandatory Training Fund
The Government is proposing to change the existing law in order to expand the scope for Human Resource Development Fund (HRDF). After the expansion of scope, the accounting firms will be compelled to contribute 1% of their annual payroll to the fund again. There will be briefing on either 16 or 29 July by the authorities and member firms have been invited to attend the briefing.
The meeting decided that the Institute shall bring this matter to the attention of member firms in an urgent basis, seek their feedback (by creating a template) via email and have a meeting between 16 & 29 July (if necessary) to better strategise the position of MIA.