Audit Oversight Board Annual Report 2025
Fostering high quality independent auditing to promote confidence in the quality and reliability of audited financial statements of public-interestentities and schedule funds in Malaysia.
It is my privilege to present the Audit Oversight Board’s (AOB) Annual Report for the financial year ended 31 December 2025. Having served as a Board member since the year 2020 and being redesignated as Executive Chairman on 5 January 2026, this is my first year of reporting on the AOB’s oversight activities and key highlights.
Highlights
2025 KEY HIGHLIGHTS OF THE AOB’S CORE FUNCTIONS
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REGISTRATION
REINFORCING REGULATORY EXPECTATIONS
INSPECTION
STRENGTHENING THE FOCUS ON RISK-BASED INSPECTIONS
ENFORCEMENT
FOCUSED AND IMPACTFUL ENFORCEMENT OUTCOMES
RM905.5
billion
RM519.5
billion
RM4.8
billion
RM39.3
billion
16
Net asset value (NAV)
Monitoring and Supervision of Public-Interest Entities and Schedule Funds Auditors
The AOB undertakes a range of monitoring and supervision initiatives to uphold the integrity and quality of audits performed on public-interest entities (PIEs) and schedule funds. Its oversight framework consists of registration/ recognition of audit firms and individual auditors, regular inspections, and enforcement actions to ensure compliance with international auditing and ethical standards.
Stakeholder Engagement and Capacity-Building Initiatives
The development and implementation of regulatory policies and actions require careful assessment of their impact on relevant stakeholders. AOB strives to balance diverse viewpoints in its decision-making process with a focus on public interest. It is therefore essential that the AOB regularly engages in discussions, fosters collaborations, and seeks constructive feedback to effectively discharge its responsibilities. Feedback from past engagement activities has consistently highlighted that such sessions provide valuable insights and a deeper appreciation of the importance of the AOB’s role in safeguarding audit quality.
Statements
The Board of the AOB comprises a Non-Executive Chairman, an Executive Officer, and five other Non-Executive Members who are appointed by the SC. The Non-Executive Members are representatives from the regulators, namely BNM and SSM, the legal profession, auditing profession and the private sector. The Executive Officer is responsible for the day-to-day administration of the AOB.
The Non-Executive Chairman of the AOB is appointed for a term of two to three years and the Non-Executive Members of the Board are appointed for a term of two years. The Non-Executive Chairman and Non-Executive Members are eligible for reappointment upon the completion of their terms respectively.
