Board reminds audit firms of their duties

PETALING JAYA: Audit firms have been reminded to perform the necessary procedures to check whether the overall presentation of financial statements is in accordance with the applicable financial reporting framework.

The Audit Oversight Board (AOB), in its fourth annual report, noted that inspections stressed on key elements like the tone set by the leadership of audit firms, the performance consistency of partners within an audit network, and the effectiveness of their internal monitoring systems.

“Based on our findings, we believe audit firms need to enhance this component of their quality control procedures to ensure better effectiveness,” AOB executive chairman Nik Mohd Hasyudeen Yusoff said in a statement.

The annual report captured its oversight focus in the past year on activities that reinforced the quality control system of audit firms in Malaysia and encouraged best practices which enhanced the quality of their audit work.

The AOB was set up by the Securities Commission in 2010.