IFAC-MIA Malaysia Code of Ethics workshop

1. Simon Tay Pit Eu
Executive Director, Professional Practices & Technical (PPT)
Malaysian Institute of Accountants
AFA IFAC SMO Workshop # 4
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2. SMO # 4: IESBA’s Code of Ethics for
Professional Accountants
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Promote, adopt and
implement the IESBA
Code (including
building awareness,
providing education
etc)
Notify members of
any new, proposed
& revised provisions
pertaining to the
Code
Timely
comment on
EDs issued
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3. Ethics Standard Board
Chairman
Dr. Mohd Nizam bin Mohd Ali (Academician)
Members
Prof. Dr. Aiman @ Nariman binti Mohd Sulaiman
(Academician)
Eulis Rachmatiah binti Iskandar Sastrawidjaja (Ex-
Compliance Officer)
Mohamed Hanif bin Abdul Hamid (PAIB)
Ng Yee Yee (PAPP)
Ravindran Navaratnam (PAIB)
Tan Khoon Yeow (PAPP)
Dr. Veerinderjeet Singh (PAIB)
Assoc. Prof. Dr. Zuraeda binti Ibrahim (Academician)
Observers (Regulators)
Ooi Thiam Poh, Alex
Tan Lay Khoon
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Objectives
• To serve the public interest and strengthen
the accounting profession by issuing high
quality professional and ethical standards
for the Institute’s members;
• To promote adherence to high quality
professional and ethical standards and
furtherance of international convergence of
standards, review exposure drafts issued by
IESBA and to submit comments thereon;
• To develop and issue guidance or
clarification to assist with the
implementation of the Institute’s By-Laws;
• To support the efforts of the Institute in
promoting greater awareness and
understanding of the Institute’s By Laws;
and
• To speak out on public interest issues
where professionalism and ethical conduct
of accountants is required and relevant.

4. Due Process on Adoption
of IESBA Code

5. 5
Due Process on
Adoption of
IESBA Code
5
IESBA
Development of proposed
International Pronouncement

6. 6
Due Process on
Adoption of
IESBA Code
(cont’d)
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7. 7
Awareness &
Education
Adoption &
Implementation
Submission of
Comments
Recent, On-Going and Upcoming
Initiatives
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8. Adoption & Implementations
Recently, coming into effect:
(a) Revision to Part 4B of the Code to
reflect terms and concepts used in
ISAE 3000 (Revised)
(b) Revision to the Code to promote
the role and mindset of all
Professional Accountants
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Coming soon (effective Dec 2022)
o Addressing the objectivity of an EQR
and other appropriate reviewers
o Revisions to the NAS Provisions of
the Code**
o Revisions to the Fees Related
Provisions of the Code**
** We also promoted the Youtube videos that provide
the explanation of this 2 projects and the final
outcomes as approved by the IESBA through
members’ circulars.

9. Awareness &
Education
9
Webinars
Dec
2020
Impact of COVID-19 and the ethical behaviour of PA
Salient features of the revised and restructured Code (poll on ethical
pressure was also conducted during the event)
Mar,
Apr,
June
2021
Town Hall sessions covering:
Implications of COVID-19 on ethics
IESBA work plan and updates
Dec
2021
Ethics Webinar (Conceptual Framework, Role and Mindset for all PA,
Independence) + Ethics Quiz (while promoting the 12 installments of
“Decoding the Code of Ethics” publications issued by IFAC as pre-
reading materials)
Dec
2021
2 webinars with students from 2 different universities covering topics on
fraud and independence (using examples of corporate failures such as
Enron) and the revised and restructured Code (building awareness at the
tertiary education level).
Jan/
Feb
2022
Practitioner’s Forum and Feb Town Hall session (sharing of the various
provisions of the Code that have come into effect and those being
effective end of 2022)

10. Awareness & Education
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Code of Ethics is also covered in:
Membership Induction
Programme
Public Practice
Programme
Interview for Approved
Company Auditors and
Approved Liquidators

11. 11
Featuring the Institute’s
ESB Member
• Video profiling and the
publication of the Board’s
annual report (creating
awareness of the Board’s
work; indirectly promoting
the work of IESBA)
Ethics webinar & quiz
• A repeat of the event of
Dec 2021 but covering
new topics (proposed) on
the concept of public
interest, PIEs and
NOCLAR
Outreach & webinar on
the upcoming ED
(engagement team +
group audit)
• Will also be promoting the
Youtube video on this
topic once it is available at
IESBA website
Awareness & Education
Upcoming initiatives in 2022

12. 12
Town Hall for PAIBs
(Mar 2022)
• Will be covering the
role and mindset
provisions in more
details
Promoting the eIS
• Better access to the
standard (but to inform
members to be
cautious that some
provisions may be
localized to fit into the
Malaysia’s legislative
provisions/ business
landscape) [This was
also shared at the
Townhall in Feb 2022]
Briefing on
Technology WG at
CFO Circle (Mar 2022)
• IESBA Board member
has been invited to
give a briefing on the
scope of work of the
WG and sharing of
some early findings by
this WG, leading to
some near-future
IESBA project
(possible changes to
the Code because of
the impact of
technology)
Ethics, Integrity &
trust Conference (Mar
2022)
• Among topics to be
covered are NOCLAR
and accountant’s
responsibility to act in
public interest (Section
100, 113, 260 and 360
of the By-Laws)
Awareness & Education
Upcoming initiatives in 2022

13. Recent Comments on EDs +
Other IESBA’s Projects
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Responded to the ED on
Revision to Part 4B of the Code
to reflect terms and concepts
used in ISAE 3000 (Revised)
Responded to the ED to
promote the role and mindset of
all PA
Responded to the ED on NAS
Provisions
Responded to the ED on Fees
related provisions in the Code
Responded to the ED on
definitions of Listed Entity and
PIEs
Other Projects:
• Questionnaire on IESBA’s definitions
of listed entity and PIEs, submitted in
Aug 2020
• Online survey on impact of technology
on auditors’ independence, available
technologies and complexities,
submitted in Nov 2020

14. 14
Input on ethical subject
(using the Code as a
basis) in university
accreditation exercises
(also, on periodic
review for continuing
accreditation)
Posting of our comment letters to IESBA for members’ knowledge &
information on the Institute’s website (newly created)
Responding to Technical Enquiries
Sharing of IESBA publications
through circulars and eNews (eg,
Exploring the IESBA Code; Navigating
the Heightened Risks of Fraud &
Other Illicit Activities during the
Covid-19 Pandemic; Ethical &
Auditing Implications Arising from
Government-Backed Covid-19
Business Support Schemes)
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Other Initiatives
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15. Questions?