Individual Project

MS3254 Corporate Law Course coordinator: Haji Azhar Bin Sulaiman.

Auditor in the part of Brunei Certification for Halal Certificates and Halal Label.

Name: Siti Nurul Hazimah Binti Senudin. I.D no: 08B1737. Year: 3 Programme: B.A Accounting and Finance. Faculty of Business, Economics and Policy studies. University Brunei Darussalam.

Brunei Certification for Halal Certificates and Halal Label is administered by the Majlis Ugama Islam. Most businesses would obtained Halal Certification under Halal Certificate and Halal Order, 2005. Auditor plays an important role towards this part. It is because auditor is whom who verified that the Halal procedures and requirements is effectively maintained. According to Majlis Ugama Islam, one or two people will be appointed as auditor to carry out this matters. The Majlis may require the committee to have the place of business inspected and the food therein analysed. First of all, what is Halal Certificate and Halal Label? Halal Certificate and Halal Label is issued by the Majlis Ugama Islam. Halal Certificate and Halal Label, 2005, defines Halal Certificate and Halal Label as a) Neither is nor consists of or contains any part or matter of an animal that a muslim is prohibited by Hukum Syara to consume or that has not been slaughtered in accordance with Hukum Syara. b) Does not contain anything that is considered to be impure in accordance with Hukum Syara. c) Has been prepared using an instrument that is free from anything which is considered to be impure in accordance with Hukum Syara. d) Has not in the course of preparation or storage, been in contact with or close proximity to any food that fails to satisfy paragraph a), b) or c) and anything that is considered to be impure in accordance with Hukum Syara. The member of audit committee usually consists of the director of Syariah Affairs who shall be the chairman, the deputy mufti or his representative, the district officer of each district or his representative, the district-general of health services or his representative, the chairman of each municipal board or his representative, the director of agriculture or his representative, the secretary of the Majlis or his representative and not more than 2 other members to be appointed by the minister with the approval of His Majesty the Sultan and Yang Di Pertuan where notice of whose appointment shall be published in the Gazette. In fact, the minister shall appoint one of the members of the committee to be the secretary. In Islamic view, auditing is the process of inspection and evaluation of a company s in accordance with Shariah rules and principles. In other words, it is a systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled. As mentioned above, an audit will be carry out by auditor to determine the Halal procedures and requirements and also related results comply with agreement in accordance to Hukum Syara. Committee will then order the auditor to carry out inspection at the concerned places of business and to take sample of any foods therein

for analysis. In appointing an auditor, he or she must be competent in a particular food field and formally appointed by the minister with the approval of His Majesty the Sultan and Yang Di-pertuan as inspector under Halal Certificate and Halal Label Order, 2005. The auditor may enter, inspect and examine any place, equipment, operation, storage, materials, records, food and without payment take samples of food for analysis or any other purpose to ascertain whether or to ensure that any requirements of or any conditions imposed under Halal Certificate and Halal Label order 2005 are being complied with at any reasonable time. The qualification criteria for auditor to be appointed as inspector is prepared under Halal Certificate and Halal Label Order, 2005. According to Halal Certificate and Halal Label Order, 2005, the auditor should be qualified in a relevant scientific or technological discipline with either a candidate with secondary or equivalent qualification with a minimum 3 years full time experience in the relevant field or secondary education is that part of the national educational system that comes after primary stage, but that is completed prior to a university of similar educational institution. Other than that, the auditor must be technically competent in relevant specific field such as food science, veterinary science and etc with a minimum of 2 years full time working experience. Moreover, the auditors have to participate in at least 4 Halal audits under the leadership of a lead auditor. To become auditor in verifying Halal Certificates and Halal Label, the auditor must be familiar with and had knowledgeable in Halal audits, regulations, procedures, requirements and certification procedures. Most importantly is the auditor should be registered and appointed by the Minister. Other than qualification criteria , the auditor should also possess personal attributes such as ethical, open-minded, diplomatic, observant, perceptive, versatile, tenacious, decisive and self-reliant to enable them to act objectively and effectively. In order for the auditor to act, they must observe and comply with the code of ethics given by Halal Certificate and Halal Label order, 2005. The following are the code of ethics: a) To act professionally, accurately and in unbiased manner. b) Not to represent conflicting or competing interests and to disclose to any client or employer and relationships that may influence judgement. c) Not to discuss or disclose any information relating to an audit to other party unless required by law or authorized in writing by the auditee and auditing organization.

d) Not to accept any inducement, commission, gift or any other benefit from auditee organizations, their employees or any interested party or knowingly allow colleagues to do so. e) Not to intentionally communicate false or misleading information that may compromise the integrity of any audit or auditee s certification process. f) Not to act in any way that would prejudice the reputation of the Majlis Ugama Islam. g) Obtain and access objective evidence fairly. h) Remain true to the purpose of the audit without fear or favour. i) Perform the audit process without deviating due to distractions. j) Commit full attention and support to the audit process. k) React effectively in stressful situations. l) Remain true to a conclusion despite pressure to change that is not based on evidence. In addition, the auditor shall maintain independence, confidentiality and integrity as well as ensure that confidentiality is maintained for all records and documents related to the audited applicant. In fact, the auditor should also keep their knowledge and skills up-to-date and not retain or reproduce any records and documentation received and generated during the course of an audit. Moreover, every auditor are given the authority card where the auditor show the card to the person against whom the auditor is taking action on performing any duties or exercising any of powers under this Halal Certificate and Halal Label Order 2005. There is procedure that the auditor needs to follow to inspect for halal certificate and halal label in term of adequacy audit and on-site audit. Adequacy audit is a document audit to examine the contents of all supportive documents as required by the Majlis which consists of general requirements for Halal certification including halal certificates, records, list of ingredients and packaging materials are submitted to verify that all the requirements of the Halal Certificates and Halal Label order 2005. Here, auditor will conduct these type of audit on the Halal procedures and Halal pre-requisite programme within 1 week upon receipt of documents. Then, the lead auditor will comments the audit, prepares the report and submits to the committee within five(5) working days upon receipt of documents. Within 1 week after adequacy audit, the lead auditor makes on-site appointment with the applicant and sends out formal on-site audit programme to the applicant(s) and the auditor(s). As the Majlis appointed auditor to carry out surveillance audit, the surveillance auditor should confirm the time and date of surveillance audit with the

auditee s management. After that, a checklist that is according to the scope of the audit shall be prepare on activities such as entry meeting, record review, on-site observation, preparation of audit findings and exit meeting. Lastly, report on surveillance audit findings shall be submitted to the committee with a copy to the auditee where a preliminary report to be submitted immediately after the surveillance audit followed by a final report after all the Corrective Action Requests have been closed out. The surveillance audit usually carried out at least once in six (6) month, however it is vary according to circumstances. The committee will then prepare reports to the Majlis stating that they are satisfied with the applicants that has in complied with any requirement and upon payment of fees after studying the report of the auditor. After giving due consideration on the committee s report, the Majlis can issue Halal certificates to the applicants. Applicants approved by the Majlis would be charged $30 for every Halal certificates and $50 for every Halal permit. These certificates is valid for one year from the date of issue. If the certificates expired, the renewal of the Halal certificates should be done not less than 30 days prior to expiry date. The fee for renewal Halal certificates is $30. In the case of Halal Label, it should be used on every package of the relevant food after the Halal permit has been issued. In addition, the certificate holder should exhibit their certificates in conspicuous place of the place of business. If the certificate holder exhibit the expired Halal certificate in the place of business, they will be charge guilty of offence and liable on conviction to a fine not exceeding $4000, imprisonment for a term not exceeding one year or both. Therefore, any business who makes use of the expression Halal , Ditanggung Halal or Makanan Islam or any other expression in relate to Islam religion is guilty of an offence and liable on conviction to a fine not exceeding $8000, imprisonment for a term not exceeding 2 years or both.

Appendix 1

APPLICATION FORM FOR HALAL CERTIFICATE THE RELIGIOUS COUNCIL BRUNEI DARUSSALAM HALAL CERTIFICATE AND HALAL LABEL ORDER, 2005 APPLICATION FOR HALAL CERTIFICATE [This application includes business branch and franchise] 1. Name of Business : ...................................................................... ...................................................................... ...................................................................... 2. Business Mark (if any) : 3. Address of Business : ...................................................................... ...................................................................... ...................................................................... 4. Business License No. (if any) : ...................................................................... 5. Business Registration Certificate No. (if any) : ................................................ 6. Type of Business : ....................................................................... ....................................................................... .......................................................................

7. particular of owner Name Home Address I.C No and Colour

8. particular food/ brand name Name of food ingredients Manufacturer/supplier

9. business mark (if any)

10. Declaration I / We declare that all particulars and information stated in this form are true. Name and Signature of Owner / Group of Owner : NAME : SIGNATURE : 1. ..................................................................................................... 2. ..................................................................... ............................... 3. ..................................................................... ............................... 4. ..................................................................... ............................... 5. ..................................................................... ............................... If the space given is inadequate for the names, please add and attach names on a separate sheet of paper. Date : ........................................(Hijriah) ........................................(Masehi) Copies which have been verified for the following must be attached : i. Business License; ii. Business Registration Certificate; iii. Copy of Applicants Identity Card / Passport; iv. Company profile; v. Copy of Miscellaneous License of company (if any); vi. Halal status of ingredients and their Halal Certifications or product specifications for critical ingredients (as appropriate); vii. Type of packaging material (if any); viii. Processing and production procedures; ix. Product process flow; x. Other certificates or documents such as Hazard Analysis and Critical Control Point (HACCP) Plan, International Standard Organisation (ISO), Good Hygiene Practices (GHP), Good Manufacturing Practices (GMP), Total Quality Management (TQM), Veterinary Health Mark (VHM), Veterinary Inspection Logo (LPV) and other (if applicable); and xi. Map of the place or the place of business.

Appendix 2 HALAL CERTIFICATE MAJLIS UGAMA ISLAM RELIGIOUS COUNCIL NEGARA BRUNEI DARUSSALAM SIJIL HALAL HALAL CERTIFICATE

Sijil Halal yang dikeluarkan di bawah bab 6(1) dari Perintah Sijil Halal dan Label Halal, 2005 Halal Certificate issued under section 6(1) of Halal Certificate and Halal Label Order, 2005 Nama perniagaan Name of business Keterangan mengenai tempat perniagaan Details of place of business Alamat tempat berniaga Address of place of business Sijil Pendaftaran Perniagaan Certificate of Business Registration

Lesen Perniagaan Business licence

Dikeluarkan pada : .................................................. Issued on Sah sehingga : .................................................. Valid until Tarikh : ................................ (H) Date ................................ (M) Tandatangan dan meterai Signature and seal Setiausaha Majlis Ugama Islam Secretary of Religious Council Negara Brunei Darussalam

Appendix 3

PERMIT HALAL CERTIFICATE AND HALAL LABEL ORDER, 2005 PERMIT UNDER SECTIONS 12(1)/43(5) The person named above is authorised to use the Halal Label on packages of ............................................................... (name of food).

Date : ..............................

.................................................... Secretary of the Majlis

Bibliography
Council, T. R. (2007). Guideline for Halal Certification 1st edition. Brunei Darussalam. Council, T. R. (n.d.). Guideline for Halal Surveillance Audit 1st edition. Brunei Darussalam. Darussalam, C. o. (2005). Halal Certificate and Halal Label Order 2005. Brunei Darussalam. Darussalam, T. R. (n.d.). Guideline for Halal Compliance Audit 1st edition. Brunei Darussalam. Resources, M. o. (n.d.). Guideline for use of the Brunei Halal Brand . Brunei Darussalam.