MAREF NEWSMAY 2008 The Malaysian Accountancy Research and Education Foundation www.maref.org.my

Chairman, Board of Trustees YBhg Datuk Dr. Abdul Samad Haji Alias

Board of Trustees

YM Raja Dato' Seri Abdul Aziz Raja Salim ;

YBhg Dato' Syed Amin Aljeffri ;

YBhg Dato' Raymond Liew Lee Leong ;

En. Neoh Chin Wah ;

En. Damanhuri Mahmod ;

Associate Professor Dr. Noorhayati Mansor ;

En. Chow Kee Kan

The MAREF Secretariat can be contacted at:

26A Jalan Padang BeliaOff Jalan Tun Sambanthan, Brickfields, 50470 Kuala Lumpur Malaysia Tel no : 603 - 2274 9911Fax no: 603 - 2273 7804 Email: admin@maref.org.my maref@streamxy.com

or direct to our secretariat:

Chief Operating Officer Shahrizal Muhaiyarshahrizal@maref.org.my

Administration and Finance Department Faizah Yahyafaizah@maref.org.my

Research Department

Hariri Zahariharirizahari@maref.org.my

“FUNDING RESEARCH TODAY TO IMPROVE THE PRACTICE TOMORROW”

www.mia.org.my

MAREF NEWSBackground

The Malaysian Accountancy Research and Education Foun-dation (MAREF), a corporate body established under the Trustee (Incorporation) Act 1952, was formed by the Malaysian Institute of Accountants (MIA) in 1990 for the promotion, encour-agement and advancement of accountancy research and education in Malaysia. Since its inception, MAREF has funded more than 35 research projects on various topics related to the accountancy industry.

Objectives

The objectives of MAREF are:

To encourage and promote the advancement and develop-ment of accountancy in Malaysia.

To carry out legally charitable activities for the advancement of education and training in the profession.

To carry out research and to promote the development of accounting and auditing standards.

To publish and disseminate literature for the advancement of the accounting profession.

COMMISSIONED RESEARCH PROJECT BETWEEN MAREF, MIA & UM

The Board Of Trustees (BOT) on 7 March 2008 approved a research grant to conduct a study entitled “Current Usage Patterns of Business and Professional Services Among SMEs in the Manufacturing and Distributive Trade Sectors” based on a proposal submitted by MIA. The study will be conducted by members of the Faculty of Business and Accountancy, Univer-sity of Malaya, led by Associate Professor Dr Ong Fon Sim. The first preliminary report is expected to be presented during the MIA CPA Australia Public Accountants’ Conference scheduled to be held in August 2008.

The study is expected to :

Gain an understanding of the needs of SMEs for business support services

Identify support services (accredited and non-accredited professional services) that will assist SMEs in defining and building competitive advantage

Assess the extent of the demand for such services

Identify the types and extent of use of services that SMEs currently obtain from public accountants

Gauge the level of satisfaction among SMEs regarding the current types and scope of services provided by public accountants

identify the opportunities that could be tapped by public accountants based on a gap analysis of demand for services and the current level of services provided by public accountants

ON-GOING RESEARCH PROJECT 2007-2008

“An Investigation of Malaysian Auditors’ Self-Perceived Information Technologies Knowledge Level: An Empiri-cal Assessment” by Assoc. Prof. Dr Noor Azizi, University Utara Malaysia. The research will identify the relevant information technologies from the perspective of auditors in Malaysia; it will examine the actual level of knowledge of information technologies held by auditors in Malaysia, and it will examine the fit between the relevant technologies and the actual levels of knowledge of these technologies among auditors in Malaysia.

“Determinants of Accounting Students’ Intention Towards Malaysian Institute of Accountants (MIA) Mem-bership” by En. Zainol b Bidin, University Utara Malaysia. The general objective of the study is to investigate the factors that influence accounting graduates’ intention to take up MIA membership by using the Theory of Planned Behaviour (TPB) model. This study is designed with two specific objec-tives: to identify variables that significantly predict the inten-tion to become a MIA member and to investigate the strength of factors that are related to the intention to become a MIA member.

“Corporate Environmental Reporting by Companies listed on Bursa Saham Malaysia an Assessment of Companies Attitude” by Assoc. Prof. Dr Nik Nazli Nik Ahmad, International Islamic University Malaysia. The overall objective of the study is to examine the attitudes of companies listed on the Main Board of Bursa Malaysia with regard to Corporate Environmental Reporting (CER) and environmental governance. Specifically, the proposed research has the following objectives: to assess the current status of CER practices of these companies; to examine managers’ opinions on CER relating to proposed contents, format and target audience; to understand corporate incen-tives and motives for CER.

“Audit Qualifications and Corporate Governance Char-acteristics of Private Companies in Malaysia” by Dr Zakiah Muhammaddun Mohamed, University Kebangsaan Malaysia. The research aims to provide new insights into the financial reporting quality of private companies in Malaysia. In addition, this study examines the relationship between the different types of audit qualification and the corporate gover-nance characteristics of companies.

“Financial Reporting Delay and Key Performance Indica-tors of Malaysian Co-operatives” ” by Assoc. Prof. Dr. Noorhayati Mansor, University Malaysia Sabah. This research will examine the pattern and determinants of delay in reporting among Malaysian cooperative and to propose key performance indicators (KPIs) as ‘headline KPIs” for the purpose of systematic monitoring and performance manage-ment of Malaysian cooperatives.

“Cooperatives’ Ratings and Audit Report : A Preliminary Study of Current Practices in Sabah and Sarawak” by Assoc. Prof. Dr. Noorhayati Mansor, University Malaysia Sabah. This research will assess the pattern of capital

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The Malaysian Accountancy Research and Education Foundation www.maref.org.my

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expenditures among Malaysian listed companies, examine the roles of internal cash flows, insiders’ ownership and investment opportunities on capital expenditures decisions, and also examine the relationship between capital expendi-tures and the performance of public listed companies .

“Improving Audit Committee Diligence in Malaysia Com-panies” by Dr. Md Saaid Sailan, UNITEN. The study aims to examine how diligence can be enhanced in order to achieve audit committee effectiveness. This study is also designed with three specific objectives: to identify the significant factors that influence audit committee diligence; to develop a tool to measure audit committee diligence; to measure the level of diligence of the audit committee.

“Directors’ Remuneration and Ownership Structure : The Case of Bursa Malaysia Companies” by Assoc. Prof. Dr Azham Md Ali, University Utara Malaysia. The objectives of the research are to examine the remuneration component and disclosure practices of directors’ remuneration in Malay-sia Public Listed Companies in relation to the concentration of corporate control based on the identity of the owner (eg. Government-linked companies, founder-linked companies, institutional-linked companies, foreign-owned companies); and to examine the rationale and process of setting of direc-tors’ remuneration implemented by Malaysian PLCs.

MAREF PUBLICATION

Corporate Integrity Framework Research Monographs.

MAREF and the Institute of Integrity Malaysia signed a MOU in May 2006 to conduct a joint Research and Development project entitled “Strengthening Good Corporate Governance and Ethical Business Practices within the Malaysian Private Sectors”. The research was completed in June 2007 and six research papers have been published as monographs. The complete monograph set, priced at RM40, is available from the MAREF office.

Malaysian Accounting Review

The Malaysian Accounting Review is an international referred journal jointly published by the Faculty of Accountancy, Universiti Teknologi MARA, Malaysia, and the Malaysian Accountancy Research & Education Foundation of the Malay-sian Institute of Accountants.

This journal is launched in the hope of stimulating quality research into accounting and accounting-related areas. Researchers are strongly encouraged to use this publication as a platform for disseminating their research findings to members of academia and the community at large.

There are currently six volumes of this publication, which can be purchased for RM40 per volume. For further information please visit our website or contact our office.

Contents

Earnings Management and Deferred Tax

Corporate Social Reporting in Malaysia: A Political Theory Perspective

The Implication of Tax Rates on Corporate Capital Investment

Corporate Governance, Professional Regulation and Audit Quality

Professional Student’s Technology Readiness, Prior Computing Experience and Acceptance of an E-Learning System

Accounting Students’ Perceptions of Effective Teaching Methods and Instructor Characteristics: Some Malaysian Evidence

Voluntary Annual Report Disclosures by Malaysian Multinational Corporations

1st Prize “Service Quality, Client Satisfaction and Loyalty Towards Audit Firm”. Researcher : Professor Dr. Hasnah Haron University : Universiti Sains Malaysia 2nd Prize “A Note on Market Competition, Advance Manufacturing Technology and Management Accounting and Control Systems Change”. Researcher : Dr. Che Ruhana Isa University : Universiti Malaya 3rd Prize “An Examination of the Random Walk Model and Technical Trading Rules”. Researcher : Lai Ming Ming University : Malaysia Multimedia University 4th Prize “A Review of Takaful Accounting Regulations and Prac-tices in Malaysia”. Researcher : Dr. Shahul Hameed Mohamed Ibrahim University : International Islamic University Malaysia 5th Prize “The Utilisation of Tax Investment Incentives on Enviro-mental Protection Activities among Malaysian Company”. Researcher : Mohmad Sakarnor Bin Deris University : Universiti Tenaga Nasional

6th Prize “The Reliance of External Auditors on Internal Auditors”. Researcher : Professor Dr. Hasnah Haron University : Universiti Sains Malaysia 7th Prize “Do Online Stock Recommendations Add Values to Malay-sian Stock Brockerage”. Researcher : Lai Ming Ming University : Malaysia Multimedia University 8th Prize “Adaptation of Corporate Social Responsibility Private Sector Guidelines. Pilot Case Study in a Local Govern-ment Practices”. Researcher : Fathilatul Zakimi Abdul Hamid University : University Utara Malaysia 9th Prize “Examining the Reporting Behaviour of Malaysian Public Listed Companies in 1993 and 2003: A Case of Environ-mental Reporting”. Researcher : Bakhtiar Bin Alrazi University : Universiti Tenaga Nasional 10th Prize “Accruals Accounting in Government – Developments in Malaysia”. Researcher : Dr. Zakiah Saleh University : Universiti Malaya

We wish to congratulate the winners for MIA-MAREF Outstanding Research Paper Award 2007.

RESEARCH PARTNERS

MULTIMEDIA UNIVERSITI

http://www.maref.org.my Distributed by Malaysian Institute of Accountants

The Trustees would like to record their appreciation to all members of MIA who

have generously donated to the Foundation since its inception. The Trustees

would like to appeal to the members of MIA to continue their support for the

Foundation. MAREF is an approved tax exempt non-profit foundation as defined

under Section 44(6) Income Tax Act 1967. All donation made toward the funds of

this foundation is exempted from income tax. Donors will be issued a receipt to

claim for deduction for tax purposes.

Contribution to The Foundation