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.

Registration and recognition criteria and conditions are set to make sure that only competent, qualified, and independent auditors are allowed to audit PIEs and schedule funds. Major Audit Firms are inspected annually, while Other Audit Firms are reviewed at least once every five years, reflecting a risk-based approach to supervision. These inspections assess both firm-level quality management systems and engagement-level audit engagements, to ensure compliance with the International Standards on Quality Management (ISQM), International Standards on Auditing (ISAs) and ethical standards as adopted by the Malaysian Institute of Accountants. Non-compliances with these professional standards, depending on the nature and severity, would result in enforcement actions on the auditors.