SoAReach

Home | Students & Alumni | Faculty | School | Industry

Issue No. 8, June 2010


		Learning from the Industry

			An Eye for an Eye

			IFRS 9 Financial Instruments

			The Relevance of Management Accounting

			Why do PeopleTurn to the Dark Side?

		Collaborating with the Industry

			KPMG-SMU Survey

		Industry Insights

			Singapore – A Global Accountancy Hub

			Directors Playing Musical Chairs?

Industry

Learning from the Industry Why do People Turn to the Dark Side?

To equip students with a competitive edge, the School of Accountancy (SoA) regularly organises talks by renowned industry practitioners to augment student learning in class. On 26 March 2010, SoA was pleased to welcome Mr Uantchern Loh, President of the Institute of Internal Auditors Singapore, to present a talk on the topic, "Why do People Turn to the Dark Side?" Final year student, Mark Ooi Yit Min (Accountancy and Business 2006) shares his key takeaways from the session.

Mark Ooi Yit Min Accountancy and Business 2006

"Why do people turn to the dark side?" Taken out of context, you would be forgiven for expecting to see something about Star Wars. The talk by Mr Loh, however, largely centred on the Internal Auditing profession. While the talk was not about Star Wars per se, one could arguably draw parallels between the role of auditors and role of the Jedi with respect to those who have turned to the 'dark side'. Mr Loh describes an auditor as someone who seeks the truth. Thus, an auditor's job is to look at a set of circumstances and come to a conclusion based on those circumstances. In particular, an internal auditor can be likened to the eyes and ears, and trusted advisors of the CEO and the board to find out whether anything has gone wrong in the company. To be an effective internal auditor, one must be inquisitive and thick skinned enough to ask the tough (though sometimes simple) questions. The hallmark of a good auditor is one who understands how people think, work, and are motivated. Mr Loh said, "You start with a clean slate and you have to piece everything together. Have basic knowledge of the processes. Take a critical view of things. And don't believe everything you see." Due to the nature of the work internal auditors do, Mr Loh suggests that internal auditors are in a good position to become a CEO because they interact with many people, have access to information, and understand the business and processes that take place in the company.
Mr Loh giving his talk at SR 2.3 Student posing a question from the floor
In addition, Mr Loh spoke about recent and future developments in the internal auditing profession. The ISO31000, for example, has given auditors a common language for risk management. There is also a shift towards continuous rather than periodic auditing because of the high speed of business today. An insight he shared was that simple frauds happen all the time. Just because we do not hear of that many large-scale fraud cases in Singapore as compared to the US, does not mean that it does not happen. Auditors and managers must not be lulled into a false sense of complacency by the mistaken belief that all internal controls are working and that fraud will never occur.
Mr Loh receiving a token of appreciation from Practice Associate Professor Themin Suwardy Mr Loh's insights left deep impressions on other students as well: "Sparked my interest in the internal auditing profession." - Lim Xin Yi Cheryl, Accountancy 2008 "The talk was enriching as it provided an opportunity for students to gain greater insights on the area of internal audit and the skills that internal auditors should possess to cope with the changing risk landscape." - Yang Chengkai, Accountancy and Business 2006 "In the words of Mark Twain, 'The past does not repeat itself, but it rhymes.' The prevalence of 'simple' frauds, as mentioned by Mr. Loh, serves as a reminder to us that seemingly routine controls are important and should not be underestimated." - Wong Jia Liang, Accountancy 2006 So, to all aspiring (and current) auditors, "May the Force be with You."

Last updated on 22 June, 2010 by School of Accountancy.