Page 8 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

Chairman’s

Message

recent years. The New Criteria for Registration with
the AOB was introduced in consultation with local
professional accountancy bodies.

With respect of its enforcement efforts, the AOB
took enforcement actions against 11 individual
auditors and three audit firms for failure to comply
with laws, regulations and auditing standards. The
AOB takes cognisance that the registration criteria
and inspections can only go so far in ensuring that
auditors comply with the existing requirements. The
AOB views its Enforcement function as a key aspect
in its role of overseeing the work of auditors. The
enforcement actions taken reinforces the AOB’s
commitment in upholding the integrity of the audit
profession.

Maintaining Standards and Further
Improvements
I am pleased to present the Annual Report of the
Audit Oversight Board (AOB) for the year ended The acknowledgement received from the Asian
31 December 2018. Corporate Governance Association (ACGA) in its
Corporate Governance Watch 2018 (CG Watch
As part of its mandate to assist the Securities 2018) is a recognition of the AOB’s recent efforts.
Commission Malaysia (SC) to promote confidence The CG Watch 2018 recognised the AOB as “one
in the quality and reliability of audited financial of the region’s most effective audit regulators and
statements, the AOB continues to reinforce probably the best communicator”.
regulatory expectations through its three key
functions – registration and recognition, inspection This global recognition is an impetus for the AOB to
as well as enforcement. continue its efforts in maintaining standards as an
audit regulator and to further improve audit quality.
Based on an analysis of its inspection findings in
prior years, the AOB initiated an in-depth review of
its existing registration criteria. The AOB felt that it Managing the Audit Expectation Gap
was timely that greater measures are introduced to
re-establish baseline quality that can better serve the Auditing continues to play a critical role in the
Malaysian capital market in view of developments in business environment and capital market by

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