eConfirm.my is an industry-wide Electronic Bank Confirmation Platform to facilitate the audit process for the auditors and banks operating in Malaysia as required under the International Standard on Auditing (ISA) 505 External Confirmations.
Under ISA 505, reliable audit evidence can be obtained in documentary form from a third party e.g. a bank, whether on paper, electronically or in another medium. Many bank confirmation request letters are sent to banks annually by auditors for confirmation of their clients’ bank balances and arrangements.
Traditionally, the confirmation documents are sent via normal mails or registered postage with an expensive cost. However, the auditors always experience big delays due to human errors or missing parcels. With the growing postage cost and potential risk of frauds, eConfirm.my platform provides an effective solution to solve these problems for the clients, auditors and banks.
To keep abreast of the latest market developments, Malaysian Institute of Accountants (MIA) championed this industry-wide Electronic Bank Confirmation Platform. Extol Corporation Sdn Bhd (Extol), was appointed to develop the Platform with a very economical usage fee compared to the current fee charged by an international service provider. Extol is an established IT Security company since more than 25 years ago. It is a fully owned subsidiary of AppAsia Berhad, which is a main IT solution company listed on Bursa Malaysia ACE Market.
Manual bank confirmations are inefficient and time consuming, with an average turnaround time of 4 to 8 weeks. Any delays affect clearance by auditors and could impact the timely approval of financial statements by the Board of Directors. The management of audit clients can conceal fraud by compromising the manual confirmation processes, making it difficult for even the most experienced auditors to detect financial fraud.
Today, there is a far more efficient and secure way to request bank confirmations without the risk of fraud going undetected, i.e. through electronic confirmation. This electronic platform enhances the security of the bank confirmation process through verifies organisations and users, ensures confirmations are only sent and received by registered auditors and banks, reduces risks of fraud related to the bank confirmation process, enhances efficiency in the bank confirmation process, saves valuable time and effort that can be diverted to other higher value-added work.
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.
|Processing time||Weeks||A Few Days|
|Postage cost||RM5 to RM10 per reply||Reduced|
|Lost of documents during delivery||Likely||No|
|Communication between auditors and banks||Slow – Fax/Post/Tel/Email||Easy – Online Platform|
|Time costs in following up the confirmations||High||Low|
|Risks of fraud||Possible (Information hijacked, interception, no trail)||Low (Interception is very unlikely with full audit trail)|
|Consolidated reports||Not Available||Available|
If you are a certified auditor, you can register your Audit Firm in just a few simple steps.
3. Start the Platform