Stakeholder Engagements - Audit Oversight Annual Report 2025

Stakeholder Engagements

STRENGTHENING AUDIT QUALITY THROUGH STAKEHOLDER ENGAGEMENT

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.

Throughout 2025, the AOB organised a series of sessions with key stakeholders, including:

STRENGTHENING AUDIT OVERSIGHT THROUGH GLOBAL AND REGIONAL COOPERATION

Leveraging its membership in the International Forum of Independent Audit Regulators (IFIAR) and the ASEAN Audit Regulators Group (AARG), the AOB gains access to global and regional developments while contributing to the continual enhancement of audit quality. These platforms also provide an avenue for the AOB to connect with the global and regional leadership of the six Global Public Policy Committee (GPPC) firms to discuss matters related to the network and emerging issues. The AOB’s involvement in the IFIAR working groups, including the Investor and Other Stakeholders Working Group (IOSWG) and the Sustainability Assurance Taskforce (SATF) provides the AOB with the opportunities to contribute the Malaysian perspectives to international discussions and ensuring local relevance in global standards. Participation in SATF allows the AOB to shape practices around sustainability reporting and assurance, a growing area of importance for capital markets. Through IOSWG, the AOB engages with investors and other stakeholders to better understand expectations and enhance transparency in financial reporting.

In 2025, the AOB participated in the annual IFIAR plenary meetings and workshops, where regulators from around the globe convened to exchange views on audit oversight best practices and common challenges. Discussions focused on critical topics such as quality management systems, sustainability assurance, and audit approaches involving technology, reinforcing the importance of global collaboration in advancing audit oversight.

IFIAR Plenary Meeting 2025
The plenary meeting was held in Berlin, Germany from 8-10 April 2025 and was attended by
representatives from 49 IFIAR member jurisdictions. Panel discussions were focused on the
following:
Regulatory approaches to smaller audit firms in their jurisdictions, whose significance in PIE audits continues to grow.
Assurance over sustainability reporting, and how regulators can contribute to the quality of the reporting in a context where experiences and skills still need to be built in companies and audit firms.
Approaches to utilising artificial intelligence in regulatory activities to keep pace with the technological developments surrounding the audit markets.
IFIAR 19th Inspection Workshop
In March 2025, the AOB attended a three-day workshop organised by IFIAR in collaboration with the Financial Reporting Council of Mauritius. Close to 100 participants from various jurisdictions were also present to exchange knowledge regarding the evolving audit environment, share practical oversight experiences, foster collaboration and regulatory consistency, and offer a platform for dialogue with other international organisations concerned with audit quality.
IFIAR’s Task Force and Working Group Webinars
In addition to the inspection workshops, the IFIAR held webinar sessions throughout the year discussing emerging issues and ongoing developments within the audit and inspection space, including:
Inspections of crypto-related audits.
Setting up Sustainability Reporting Assurance Oversight.
Introduction to artificial intelligence (AI) in audit and oversight.

IFIAR is a global forum for independent audit regulators to collaborate and share knowledge and experiences, with a focus on inspection of auditors and audit firms, towards promoting consistency in audit regulatory activities globally. Today, the IFIAR has 56 member audit regulators from Africa, North and South America, Asia-Pacific, Europe and the Middle East.