Hear from Dato’ Lock Peng Kuan, Managing Partner, Audit & Assurance of Baker Tilly Malaysia about his experience in using eConfirm.my.
Hear from Chris Tan Chin Sik, Audit Director of Deloitte South East Asia, Malaysia about his experience of using eConfirm.my.
eConfirm.my is a great platform that improves the efficiency and effectiveness of auditors in obtaining bank confirmations by providing us with a secured and guaranteed delivery of said bank confirmations within a faster turnaround time of 1 to 2 working days. Through the platform, we are also able to monitor the status of the bank confirmations with just a click.
A great initiative by MIA to connect banks and auditors, breaking away from the conventional confirmation process which may take weeks or months. With the online platform, it just takes a few days to get a reply, saving invaluable time and effort along the audit process.
Several fraud cases have revealed the inherent weaknesses in paper-based confirmations, which can be prevented using eConfirm.my.
Reduce Fraud Risk
Highly secure communication channel between the auditor and the responder protects the transfer of information through controls.
Minimise Human Error
By using eConfirm.my, the possibility of human error will be much minimalised.
Reduce time and effort for printing, mailing and following up. The confirmations that take weeks now only take days with eConfirm.my.
Traditional bank confirmations are costly because physical confirmations need to be posted using courier. eConfirm.my will very much eliminate this process.
eConfirm.my guarantees a smooth and successful annual audit without potential problems arising from bank confirmation fraud. It also provides real-time tracking on the confirmation status.
eConfirm.my are targeted to be used by all the registered auditors with MIA and banks operating in Malaysia, including all the Commercial Banks, Islamic Banks, Investment Banks and Development Financial Institutions. They shall use the eConfirm.my to process the bank audit confirmation for about 1.3 million companies in Malaysia according to the statistic published by Companies Commission of Malaysia (“CCM”) as on 31st Dec 2019.
Besides various benefits to the clients, auditors and banks, eConfirm.my also provides a highly secured environment, especially with the implementation of the secured end-to-end encryption technology with the use of private/public key, to ensure the confidentiality, secrecy and integrity of the electronic bank confirmation documents. All sensitive data are encrypted with the latest AES-256 and/or RSA-2048 algorithm where ever applicable. All data transmission from the user to the Platform via the internet is encrypted with HTTPS (TLS 1.2 and above).
Since this is an industry-wide initiative, MIA will be the governing body to oversee compliance with regulations, data security and committed service level. An independent external auditor will be appointed by MIA to conduct a service organisation risk and controls assessment over the Platform, through the issuance of a Service Organisation Control (SOC) 3 Report.
Many bank confirmation letters are sent to banks annually by auditors to request for confirmation of audit clients’ bank balances and arrangements. The conventional process is slow and time-consuming. Such delays could impact the timeliness of financial statements being approved and signed off by auditors.
Online confirmations are now the preferred method for confirming client information in jurisdictions such as the United States of America, the United Kingdom and Australia. In Malaysia, online confirmations are being used in a limited manner for confirmations with some foreign banks.
To facilitate industry-wide electronic confirmations by Malaysian auditors and bankers for the purpose of enhancing the efficiency and security of the external confirmation process, the MIA engaged a local vendor, Extol Corporation Sdn Bhd (Extol), to develop an industry-wide electronic bank confirmation platform (the Platform), with a much lower usage fee as compared to the current fee charged by an international service provider.
The usage fee of the eConfirm.my is RM15 per online submission of confirmation request and will only be charged upon the successful receipt of the confirmation.
You should not submit the confirmation requests twice i.e. send manually via mail and electronically via eConfirm.my, as this will result in client being charged twice for the same confirmation request.