Firms To Gain From Tighter Auditing Regulations
By Sobrina Rosli

Bandar Seri Begawan - Tightening regulations on company auditing will not only benefit the government but at the same time, it allows business operations to run effectively.

Experienced auditor Jerald Tan Chin Phang, general manager of Kuala Lumpur-based WMK Resources Management Services, considers company auditing regulations in Brunei still "pretty loose" as compared to other neighbouring countries.

"In neighbouring countries it does not matter whether you are a private limited company or an enterprise you have to submit your accounts to the government. Even small businesses are required to present at least their final accounts," he said in an interview with The Brunei Times.

Under Brunei's Company Act, auditing regulations are only imposed on private limited companies or companies established with bank loans, Tan said. The submission of accounts is a requirement for the government's income tax purposes.

Auditing, he said, involves the thorough checking of the company's accounts, ensuring all transactions are being keyed in, meeting a standard set by the government.

"To tighten up (auditing regulations) or to make it effective, it is the government that has to be the one to put in this initiative," he added.

Proper auditing would benefit the company's management, allowing managers an overview of the company's health.

"They would have an up-to-date view of the health of the company. Has sales been increasing or stagnant, has expenses increased? Accounting will help gather such statistics that would be helpful to them," he said.

WMK Resources Management Services is offering the User Business System (UBS), which is widely used in Brunei. It helps customers manage a full set of their accounts while meeting government requirements.

Tan who is also a supporter of and speaker at LiveWire Brunei encourages locals to pick up accounting practices by offering LiveWire participants the UBS at a price lower than the market rate.

"It is just to encourage locals to pick up basic accounting practices because it is crucial for every business to keep up with basic accounts. Some have very limited expertise, this would help them." he added.

The UBS is a licensed software costing companies less than $1,000. It is useful for trading and construction companies and service companies.

UBS was developed in Malaysia. WMK said it is widely used in like Singapore, Thailand, Vietnam, China and Indonesia.  -- Courtesy of The Brunei Times

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