Registration of Audit Firm and Individual Auditors

The AOB is responsible for the registration of auditors of public interest entities or schedule funds under Part IIIA of the Securities Commission Malaysia Act 1993 (SCMA). The public interest entities and schedule funds are defined in Schedule 1 of the SCMA.

The registration of auditors of public interest entities or schedule funds would ensure that only fit and proper auditors are involved in auditing the financial statements of public interest entities or schedule funds. This is in line with one the AOB strategic themes under the strategic framework which is to promote high quality audit practices.

As such, audit firms and individual auditors who are seeking registration with the AOB are required to make a declaration in the Registration Form 1 and Form 2 of the Auditor Registration Application System (ARAS) relating to their fit and proper status. Apart from that, the audit firms are required to submit information on their compliance with the International Standards on Quality Management (ISQM) and Clarified ISAs. ARAS can be accessed at https://esubmissions.seccom.com.my/aras.

An AOB registration is valid until and unless it is revoked or suspended by the AOB, or withdrawn. As long as the registration remains valid, the audit firm must ensure that the firm and the individual auditor(s) registered with AOB remain fit and proper at all times as required by the SCMA. The audit firm is also responsible to ensure timely update of information in ARAS, and is required to submit the Annual Declaration form via ARAS to AOB within seven (7) working days after 30 June of each calendar year.

Register of Auditors
Register of Auditors as at 31 August 2023
Download here (pdf)
Handbook for Registration
Audit Oversight Board Handbook for Registration (pdf)
FAQ - Registrant of AOB
1. Who must be registered with the AOB?
Section 31N(1) of the SCMA provides that no person shall, unless he is registered as registered auditor with the AOB -

(a) Hold himself out or act as an auditor of a public interest entity or schedule fund;
(b) Knowingly consents to be appointed and knowingly acts as an auditor of a public interest entity or schedule fund; or
(c) Prepare for or on behalf of a public interest entity or schedule fund any report required by the Companies Act 2016 to be prepared by an auditor.

Any person who is an approved company auditor under section 263 of the Companies Act 2016 and who is a signing partner or who performs the function of an engagement quality control reviewer in respect of the preparation of the audited financial statements of a public interest entity or schedule fund must be registered as an individual auditor with the AOB.

2. If I register with the AOB, do I still need to be an approved auditor under section 263 of the Companies Act 2016?
Yes, because one of the criteria for registration with the AOB is to be an approved auditor under section 263 of the Companies Act 2016.

3. What will AOB take into consideration in order to register an individual auditor or audit firm?
In registering, the AOB will take into consideration whether– The auditors have met the fit and proper criteria as set out under section 31P of the SCMA; and The auditors have completed and submitted the relevant online registration forms in ARAS together with the required list of documents and registration fees payable to AOB. For further information as to the registration criteria, process and forms, you are advised to refer to the AOB Handbook for Registration.

4. Do I need to renew my application annually?
No. However, you are still required to pay your registration fee by each anniversary of the effective date of registration as determined by AOB.

5. What are the standards that I would have to observe when registering with AOB?
You are required to observe all auditing, ethical and other assurance standards that may be adopted by the AOB from time to time. These include all auditing, ethical and other assurance standards adopted and related by-laws and circulars published by the Malaysian Institute of Accountants (MIA), including ISQM.

6. Can I be appointed at a general meeting as an auditor of a public interest entity or schedule fund while the AOB is processing my application?
No, you are not allowed to be appointed at a general meeting as an auditor of a public interest entity or schedule fund while AOB is processing your application. Section 31N(1)(b) of the SCMA provides that only an auditor who is registered with the AOB may knowingly consent to be appointed and knowingly act as an auditor of a public interest entity or schedule fund.
FAQ - Public Interest Entities And Schedule Funds
1. What are public interest entities?
Public interest entities refer to those entities that are currently specified under Part 1 of Schedule 1 of the SCMA. They include–
A public listed company or corporation listed on the stock exchange;
A bank licensed under the Financial Services Act 2013;
An insurer licensed under the Financial Services Act 2013;
A takaful operator licensed under the Islamic Financial Services Act 2013;
An Islamic bank licensed under the Islamic Financial Services Act 2013;
A financial institution prescribed under section 212 of the Financial Services Act 2013 or section 223 of the Islamic Financial Services Act 2013;
A development financial institution prescribed under the Development Financial Institutions Act 2002;
A holder of a Capital Markets and Services Licence for the carrying on of the regulated activities of dealing in securities, dealing in derivatives or fund management;
An exchange holding company approved under the securities laws;
An exchange approved under the securities laws;
A central depository approved under the securities laws;
A clearing house approved under the securities laws;
A self-regulatory organisation recognised under the securities laws;
A private retirement scheme administrator approved under the securities laws;
A trade repository approved under the securities laws; and
The Capital Market Compensation Fund Corporation.

Schedule 1 of the SCMA also provides that the Minister of Finance may prescribe any other person to be a public interest entity.

2. Are private companies (Sdn Bhd), partnerships and sole proprietorships public interest entities?
No, they are not unless they fall within any of the 16 entities that are specified under Part 1 of Schedule 1 of the SCMA. Hence, for example, if the private company (Sdn Bhd) is a holder of a Capital Markets and Services Licence who carries on the business of fund management, the private company will be regarded as a public interest entity.

3. What are schedule funds?
Part 2 of Schedule 1 of the SCMA currently specified two (2) types of schedule funds. They are–
Approved private retirement scheme; and
Approved unit trust scheme.

Part 2 of Schedule 1 of the SCMA also provides that SC may specify any other capital market funds as a schedule fund.
FAQ - Auditor Registration Application System (ARAS)
1. What is the Auditor Registration Application System (ARAS)?
The Auditor Registration Application System (ARAS) is the online system used by AOB to facilitate the registration process.ARAS can be accessed at https://esubmissions.seccom.com.my/aras. Please contact the ARAS helpline at [email protected] or call 03-6204 8900 for assistance.

2. How do I obtain a username and password for ARAS?
For first time registration, you would need to fill a request form which is downloadable here (pdf) or from the ARAS website and send it to AOB either by post or email at [email protected], after which your username and password will be sent to you. Each audit firm will be given two (2) usernames and passwords.

3. What do I do if I forget my username and/or password?
Please call AOB General Line at 03-6204 8900 or email us at [email protected] for assistance on this matter.

4. Who can be the lodgement officer and what is the role of the lodgement officer?
The lodgement officer need not be a registered auditor and can be any staff of the firm. The username and password to the system will be given to the designated lodgement officer. The lodgement officer will be in charge of all matters related to registration and be the main point of communication between the firm and AOB relating to ARAS.

5. How would I know when you have received my electronic application?
You will receive a notification via your ARAS inbox and your registered email once your electronic application has been submitted. You may also check the status of your application through the “Check Status” tab.

6. When will AOB process my registration application?
The AOB will only begin processing your application once your application submission is complete. An application submission is considered complete once the application has been submitted through ARAS and payment of registration fee has been made.You are advised to check your application status on the online system. All related notices, news, updates and emails will be available through the ARAS. All successful registrations will trigger an email notification which will be sent to your registered email address and ARAS inbox. AOB will also issue you a notification letter confirming your registration. For further information as to the registration criteria, process and forms, you are advised to refer to the AOB Handbook for Registration.

7. How long will AOB take to process the registration submission?
The online registration process will only begin after you have submitted a complete application AND payment of registration fee has been made. Once BOTH conditions are met, the registration process will take up to 14 working days.

8. Under what circumstances will the registration process take longer than 14 working days?
These circumstances include but are not limited to–
Online forms submitted are incomplete or lack sufficient information / documents.
Although forms have been submitted, payments of registration fees have not physically been received by AOB.
You request to make amendments or updates to your submitted application.

Note: The 14 working days exclude the times when any of the above situations arise.

9. How secured and confidential are my personal information with the online registration system?
In AOB, we are fully guided by the requirements of the Personal Data Protection Act 2010 and our internal Confidential Policy. As such, we appreciate the trust you place in AOB, and we are committed to respecting your privacy and the security of your personal information. We will not share, sell or distribute your personal information to any third party, unless we are required to do so by a government entity or court.

10. Is there a deadline as to when the forms have to be submitted upon creating a lodgement profile?
There is no deadline.

11. Can I make any changes to the forms that I have submitted?
You are only allowed to make changes to your forms once you are successfully registered by using the ARAS “Update” function. Therefore, please ensure that all information is correct before submitting through ARAS.In the case where you need to amend the submitted application when the application is still in process (by AOB), you may request AOB to return your submission. Please note that, in this situation, the 14 working days will exclude the days where the returned application is with the ARAS external user. The processing days will resume once you return the application back to the AOB.

12. What format can my attached documents be in?
PDF, Microsoft Word and Excel, JPG.

13. Why the system will not allow me to submit only Form 1 or Form 2?
You will not be able to submit Form 2 if you have not completed at least one Form 1. Similarly, you will not be able to submit the first Form 1 application if Form 2 has not been completed.

14. I would like to submit an application for registration with the AOB for the first time. Am I able to do it manually?
No, you are not able to submit your registration manually. All applications for registration must be submitted online via ARAS at https://esubmissions.seccom.com.my/aras.

15. How do I withdraw the application which I have submitted?
You may use the “Withdrawal” function in ARAS and you are required to declare the reason for the withdrawal. At the same time, you need to notify AOB in writing. AOB will send a notification email to acknowledge your withdrawal once your withdrawal application has been assessed.

16. I would like to withdraw my submitted application, why does the system not return my forms immediately?
For application or registration withdrawals, you need to notify AOB in writing. Please refer to the AOB Handbook for Registration for more information on Withdrawals.

17. Who do I contact if ARAS is down, or if I have technical enquiries regarding my online application such as being unable to save my form, proceed to next tab, etc.?
For all enquiries relating to ARAS, please call AOB General Line at 03-6204 8900 or email us at [email protected].

18. Will I still be registered if my audit firm does not complete Part 2 of Form 2, i.e. Compliance with ISQM?
For a new registration, your firm is required to complete all parts of the Form 2 and make the necessary payment of registration fee before AOB will begin to process your application submission. Your firm is also required to present to the AOB about your firm and how it has complied with ISQM. For an existing registration, you may choose not to fill in this section if there is no change from your earlier submission.

19. How often do I need to update the information in ARAS?
As long as your registration remains valid, your firm is responsible to ensure timely update of information in ARAS. In this respect, you are required to inform AOB within 10 working days when there are any changes in particulars submitted in Form 1 (individual auditor) and Form 2 (firm) in ARAS. Your firm is also required to submit the Annual Declaration form via ARAS to AOB within seven (7) working days after 30 June of each calendar year.
FAQ - Registration Fees
1. How much is the registration fee?
RM8,000, payable at the point of submitting your application for registration of individual auditor and by each anniversary of the effective date of registration as determined by AOB thereafter.

2. How do I pay my registration fee?
Payment of AOB registration fee of RM8,000 per individual auditor must be made in the form of a bank draft made payable to the “Audit Oversight Board”. Payment must be addressed to–
Audit Oversight Board
Securities Commission Malaysia
3, Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur

3. If I am a partner registered under more than one audit firm which operates as a single audit entity, do I need to pay the registration fee for each audit firm in which I am a partner?
If you are an individual auditor who is registered as an auditor of more than one audit firm, you are required to pay the annual registration fee for each audit firm with which you are registered.
FAQ - Refusal, Withdrawal, Revocation Or Suspension Of Registration
1. Will I be informed if my application for registration is refused? Will I also be informed if my registration status is revoked or suspended by AOB?
Yes, you will be informed and given an opportunity to be heard. AOB will consider your response and you will be notified of the AOB’s decision accordingly. In the event that you are not satisfied with the decision of the AOB, you may appeal to the SC within 30 days of the decision.

2. In the case where my application is refused, will my registration fee be refunded?
In the event that your application is refused for whatever reason, AOB will refund any payment made for the registration.

3. Can I withdraw my registered status with the AOB?
Yes, you can withdraw your registered status by notifying AOB in writing the reasons for doing so. You are also required to initiate the withdrawal process by clicking the “Withdraw” button in ARAS. Please note that the withdrawal is subject to AOB’s approval and the registration fee will not be refunded. Once you have withdrawn your registered status, you are no longer permitted to hold yourself out as a registered auditor under the AOB.

4. Can AOB revoke or suspend my registration even after I have been registered?
Yes, section 31Q of the SCMA provides that the AOB may revoke or suspend the registration accorded to an auditor if–
The auditor is not fit and proper during the tenure of the registration;
The auditor contravenes any terms or conditions imposed by the AOB in respect of his registration; or
The auditor fails to pay any fee as specified by the AOB.