Enforcement on Audit Firms and Individual Auditors

The AOB’s enforcement actions are focused to achieve high level of compliance among the AOB’s registrants.

Responsibilities

Conduct inquiries into possible non-compliance with auditing and ethical standards
Assess non-compliance based on facts obtained from inquiries performed
Impose proportionate enforcement sanctions based on the nature and severity of the breach

Achieving a Fair and Balanced Decision

In determining the decision to be reached, there are several factors considered:

Highlights from the AOB’s 2023 Enforcement Activities

Enforcement Actions Taken in 2023

In 2023, three enforcement actions were taken for non-compliances with the relevant ISA, as shown above. Two audit
partners were prohibited from auditing and accepting PIEs and schedule funds as audit clients for a period of one year
and monetary fines totalling RM75,000 were imposed. One other audit partner was reprimanded.

Read more on the AOB’s Enforcement Actions at https://www.sc.com.my/aob/aobs-sanctions

Number of Cases Completed since 2021

The AOB’s Enforcement Observations