The AOB’s key oversight activities such as registration, inspection and enforcement are aimed at promoting high quality audit practices. The AOB encourages that audit firms build capacity and have in place quality framework which enables quality audits to be performed consistently.
The AOB registers and recognises 40 audit firms and 369 registered and recognised individual auditors.
In accordance with Section 31V(1) of Part IIIA of the SCMA, the AOB conducts inspections on auditors of PIEs and schedule funds with the objective to promote high quality audits and reliable audited financial statements.
In 2022, the AOB inspected 21 Audit Firms covering 52 individual auditors for 56 audit engagements.
Each year, the AOB conducts inspections on all firms that have more than 50 PIE audit clients with a total market capitalisation of the PIE audit clients of above RM15.0 billion.
The AOB continued to focus its efforts in taking enforcement actions that instil good behaviour and achieve high level of compliance among the AOB’s registrants.
In determining the type of actions to be imposed, the AOB ensures that enforcement actions are commensurate with the nature and severity of the breach. The AOB would impose stricter actions in cases of multiple instances of failures to perform audit procedures. Other considerations include the conduct of the auditors, previous regulatory record and impact on the capital market.
