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    M R.   M A R C E L L I N U S   A N D R E A S
 
marcel[at]skm[dot]gov[dot]my
    DIRECTOR OF INTERNAL AUDIT
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STAFF DIRECTORY
     
 

 

Introduction
The Internal Audit Division of the Malaysia Co-operative Societies Commission (SKM) was established on 1 January 2008. The establishment of this Division is in tandem with the General Circular No. 3/1998 which makes it obligatory for Federal Statutory Bodies to establish an Internal Audit Unit.

The Internal Audit Division is under the purview of the SKM Audit Committee for operations and reporting matters, and under the Executive Chairman for administrative matters.

The SKM Audit Committee comprises of five (5) members, led by Y. Bhg Dato' Raihan bin Sharif while the Internal Audit Unit is comprises of a total of six (6) officers and staff headed by En. Mohd Rejab bin Yusoff (W48 Grade Auditor).
Terms Of Reference for Internal Audit Division
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Objectives
i. To assist SKM in achieving its objectives through a systematic and disciplined approach to ensure of the effectiveness of all the internal control and governance processes;

ii. To assist the management of SKM in carrying out the management processes 4P's, which are, planning, organising, directing and controlling of the organisation;

iii. To assist the management in the enhancement process of the divisional and unit operational systems for SKM; and

iv. To assist the management in ensuring the course of work of the divisions and units within SKM to comply with policies, regulations and standards set by the government, the management and other regulatory bodies.
Functions
The scope of duties and responsibilities of the Internal Audit Division stipulated under paragraph 7.1.4, General Circular No. 3 of 1998 are as follows:

4.1 Review the organisation over a certain period to see if the functions of planning, supervision, giving direction and control, based on policies, directives and regulations are implemented with effective management in line with the objectives and good management practices;

4.2 Determine the reliability and effectiveness of internal controls and operational controls systems;

4.3 Study the accuracy and validity of financial information and identify ways to measure, classify and report such information;

4.4 Review the existing system to ensure that it is consistent with the policies and regulations, particularly areas that affect the operations and determine if it is complied by the organisation. If necessary, to propose suitable policies;

4.5 Review appropriate ways to protect assets and verify their existence;

4.6 Assess the benefits and effectiveness of the utilisation of available resources, identify opportunities to improve use of resources and suggest ways to overcome associated problems;

4.7 Review how the organisation is run and programmes are implemented to determine if the results are in accordance with the specified objectives and if they have been implemented as planned;

4.8 Coordinate Internal Audit and External Audit duties;

4.9 Participate in planning, designing, developing and implementing computer-based management system, especially from the aspects of: (a) Control; (b) Accuracy, (c) Ability to record documentation, so that the developed system can help Statutory Bodies meet their objectives;

4.10 Submit an annual audit schedule to the Chief Executive and Audit Committee for consideration and approval;

4.11 Report to the management on who should take action on the audit comments;

4.12 Report staffs who are found guilty of corruption;

4.13 Ensure that every plan and action made by the relevant Statutory Bodies consider the views of the previous audit;

4.14 Evaluate all plans and actions that have been taken in accordance with the audit comments;

4.15 Submit reports quarterly to the audit committee which includes the following:

4.15.1 follow-up actions taken on internal audit findings are important;

4.15.2 Increase efficiency and smoothness of operation, as a result of the audit action;

4.15.3 Coordination of Internal Audit and External Audit to avoid duplication;

4.15.4 Planning audit work;

4.15.5 Obstacles faced in carrying out its audit work; and

4.16 Chief BAD shall be Meeting Secretary JAD.
Jurisdiction of the UAD
5.1 the purview of BAD created through the Audit Committee of MGS (JAD) which was authorized by the Board of Directors of SKM. BAD in its function reports to the JAD, and report to the Executive Chairman of SKM (PE) for managing its administration;

5.2 BAD have full access, free and not limited to any information, records, systems, assets, functions, operations and employees in MGS, branches and subsidiaries MGS;

5.3 BAD also has full and free access to information-information on the co-operative society registered under the MGS and is limited to the scope of internal audit or investigation undertaken;

5.4 BAD is responsible for conducting internal audits or investigations independently, efficiently, with integrity and quality evidence-based authentic and issuing reports true and fair view of the internal audit activities carried out;

5.5 BAD has authority to recommend corrective actions or improvement of processes or activities audited; and

5.6 BAD need to maintain the confidentiality of the information obtained.
Freedom of Internal Audit Division
The Internal Audit Division freedom is essential to prevent unfair judgments and bias. It can be assured via the following methods:

6.1 Internal Audit Division status in the structure of SKM as a whole must be sufficiently clear to allow auditors to complete the audit objectives;

6.2 The position and status of Director of Internal Audit Division must be commensurate with the position and status of divisional, state and other unit directors to enable him to deal effectively with peers and his superiors in the course of his duties and responsibilities;

6.3 Avoid conflicts of interest that may arise from professional or personal relationships between auditors and staff or the entity audited;

6.4 Freedom to plan, investigate and report from any elements of control, influence, pressure or external restrictions in selecting the techniques to obtain information and provide real statement of audit findings; and

6.5 Internal Audit Division shall not design and set procedures, prepare records or engage in other activities that are usually liable to be studied and reviewed and usually assumed to be able to compromise independence and objectivity. However, freedom of Internal Audit Division will not be affected by proposing a level of control to be adopted in developing a system or procedure.
Internal Audit Division Customer Charter
Internal Audit Division freedom is essential to prevent unfair judgments and bias. It can be assured via following methods:

7.1 Audit Planning

7.1.1 To prepare the Annual Audit Plan for the coming year and present it in the Fourth Quarter of SKM Audit Committee Meeting (October to December) to obtain approval from the Commitee.

7.2 Implementation of the Audit Review

7.2.1 Prepare and submit overall audit reports to the client within fourteen (14) days after the exit-meeting held with the client; and

7.2.2 Ensure that the audit report is prepared truthfully and fairly.

7.3 Audit Follow-up Review

7.3.1 Make follow-up audit visit to on the client to ensure improvement actions are implemented within six (6) months after the audit report is presented in Internal Audit Commitee Meeting

7.4 Internal Audit Commitee Meeting

7.4.1 Issue the minutes of the meeting draft within seven (7) days after the meeting, and

7.4.2 Distribute minutes of meetings and meeting minutes extract to the relevant parties within seven (7) days after the minutes of the meeting is confirmed by the Chairman of Internal Audit Commitee.