In issuing the exposure draft, the taskforce is seeking feedback from public listed companies and relevant industry participants. For any other parties interested in giving feedback, the exposure draft is available through the KLSE website at http://www.klse.com.my/edg.htm.
The guidance was developed by the Taskforce on Internal Controls whose members are from professional bodies and directors of public listed companies.
The objective of the guidance is to guide directors of public listed companies to make disclosures on the state of internal controls in their annual reports, in accordance with the proposed revamped Listing Requirements of the KLSE.
In developing the guidance, members of the taskforce observed the recommendations of the Turnbull Report (the guidance issued to directors of companies listed on the London Stock Exchange), Committee of Sponsoring Organizations of the Treadway Commission (COSO), the Basle Committee on Banking Supervision and the International Standards on Auditing (ISA) as adopted by the Malaysian Institute of Accountants and the Malaysian Association of Certified Public Accountants
For ease of reference and to eliminate ambiguity, the guidance explains in clear and simple terms key areas that directors must focus on before making any statements about the state of the company's internal controls. The exposure draft sets out amongst others, guidance on:- the system of internal controls and the responsibilities of various parties in the maintenance of a sound system of internal controls; the process of review of the adequacy and integrity of a system of internal controls; and the minimum disclosures to be made by the board of directors on the state of internal controls.
KLSE and the Taskforce on Internal Controls would like to encourage public listed companies and industry participants consulted, to consider the exposure draft carefully and to provide feedback. Their feedback would be invaluable in finalising the guidance. The deadline for sending in comments and feedback is on Monday, 25 September 2000.
