CREATING VALUE FOR MIA MEMBERS


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The last few months leading up to the AGM has been very eventful.

On top of the normal running of the functions of MIA, we moved our home to our new office in Bangsar South City and to finally grapple with the process of adopting the CSAP recommendations. In today's dynamic and disruptive landscape, these are wise words to reflect on.

Our new headquarters is in Bangsar South City, an MSC Malaysia Cybercentre which targets IT investment. This gives us access to talent in a conducive environment for growth, and will help as we consider how to respond to our members’ wishes in the MIA survey to be better adopters of digital channels.

With regards to the CSAP process, as of June 2016, the CSAP Implementation Committee has been formed and is currently seeking views and feedback on how to operationalise the recommendations. The proposed timeline to issue the Operational Model to the relevant authorities is by the end of the year and hopefully the Accountants Act will be amended in 2017.

While we sort out the CSAP details, we have already embarked on some key CSAP-compliant initiatives which are also in line with our 3R strategy of Repositioning, Rebranding and Recruiting. One is to expand, diversify and enhance the talent pipeline i.e. build quantity or capacity.

Two is to build quality or competency, in order to be more relevant to stakeholders, rebuild public trust, support nation-building and sharpen international competitiveness.

As CSAP has recommended, we are working hard to strengthen the quality of SMPs which are a critical segment of our practitioners and membership. SMP robustness will in turn elevate the profession’s quality and reputation. MIA Vice- President Datuk Zaiton Mohd Hassan personally chairs our dedicated SMP unit and MIA has prepared a fiveyear roadmap to provide guidance for SMP development. We pledge to engage more proactively with SMP members on their concerns, including advocating for audit exemptions to be applied to only dormant companies and delaying any further extensions, while promoting services diversification and the value of audit as a specialised value-added service.

CSAP also wants MIA to enhance the overall quality and good governance. As the regulator of accountants, MIA is tasked to ensure that our members are doing a good job in servicing the public. However, CSAP and an earlier World Bank report indicated we aren’t regulating our members effectively.

Our own Practice Review statistics for the 12 years ending 30 June 2016 showed that 48% of firms reviewed are in the Type 3 bracket – failed practice review or requiring follow-up reviews. This means that many in the profession today appear to be failing to deliver quality services.

This is why we have to transform and reform urgently. MIA is working to strengthen our governance structures and our monitoring and enforcement mechanisms to provide effective remedial actions, but members have to do their part to change as well by behaving ethically and professionally in line with global standards, in order to protect the public interest. We must never forget that we all have roles in protecting the public interest. Positive change will benefit all of us in the profession.

So let us all dedicate ourselves to being perfect.

Dato' Mohammad Faiz Azmi
President
Malaysian Institute of Accountants