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Current Issues in Auditing - Coggle Diagram
Current Issues in Auditing
Shariah Audit
Islamic perspective : Matters are audited to ensure compliance with Shariah rules and principles as decided by the Shariah regulatory councils
BNM’s Shariah Governance Framework (SGF)
2011
periodic assessment conducted from time to time, to provide an independent assessment and objective assurance designed to add value and improve the degree of compliance in relation to the business operations of Islamic Financial Institutions
Levels
Audit of IFIs financial statements
Compliance audit of organizational structure,
people and processes
Review of the adequacy of the Shariah governance process, providing recommendations to the Audit Committee and the Shariah Committee
Money Laundering
Definition : process by which the proceeds of crime are converted into assets which appear to have a legal rather than an illegal source
Legislation
regulated by Anti-Money Laundering, Anti- Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AKTA 613 –LAWS OF MALAYSIA)
Obligations require professionals to report money laundering to the authorities
Three distinct phases
placement - the initial disposal of the proceeds of criminal activity into an apparently legitimate business activity or property
layering - the transfer of money from business to business, or place to place, in order to conceal its initial source
integration - the culmination of the previous procedures through which the money takes on the appearance of coming from a legitimate source
Offence
Any person who - ACT 1467
(a)engages, directly or indirectly, in a transaction that involves proceeds of an unlawful activity or instrumentalities of an offence;
(b)acquires, receives, possesses, disguises, transfers, converts, exchanges, carries, disposes of or uses proceeds of an unlawful activity or instrumentalities of an offence;
(c)removes from or brings into Malaysia, proceeds of an unlawful activity or instrumentalities of an offence;
d)conceals, disguises or impedes the establishment of the true nature, origin, location, movement, disposition, title of, rights with respect to, or ownership of, proceeds of an unlawful activity or instrumentalities of an offence
TRANSNATIONAL
AUDIT
audit of financial statements which are or may be relied upon outside the audited entity's home jurisdiction for purposes of significant lending, investment or regulatory decisions
Even where an entity currently has no foreign shareholders there is a possibility that the financial statements may be relied on by a foreign investor or creditor at some future date in an actual or potential investment or lending decision