PETALING JAYA: The Securities Commission Audit Oversight Board (AOB) has announced measures to ease challenges faced in the auditing of financial reports of public interest entities (PIEs) during the period of Covid-19 pandemic.
In a circular to auditors and audit committees, the AOB has announced that the audit regulator would only commence inspection of audit firms of PIEs after May 15,2020.
Firms that are required to submit any remedial action plan to the AOB will be given an extended deadline till June 30,2020.
The AOB has also extended the payment of registration fees to July 1,2020.
Meanwhile, the implementation of Audit Transparency Report of large registered audit firms of the AOB shall be deferred to 2021.
SC chairman Datuk Syed Zaid Albar said: “We are cognisant of the difficulties faced by auditors who may need to conduct remote auditing and have limited access to clients’ books and records.
“Audit engagements could take a longer time, leading to delays in meeting reporting or regulatory deadlines, ” he said in a statement.
The AOB, which regulates auditors of PIEs, is closely monitoring the impact of the pandemic on the quality of financial reports of PIEs.
“We are aware that audit firms and PIEs’ immediate concern is to ensure the continuity of their business operations and ability to withstand market and industry volatility.
“Nevertheless, the SC’s AOB is of the view that the current situation should not undermine the delivery of high quality audits.
“Those charged with governance, in particular Audit Committees, should be extra vigilant and cautious to ensure reliable, audited financial information is provided to investors and shareholders for informed decision making, ” Syed Zaid added.
Currently, there are 40 audit firms and 330 auditors registered with the AOB to audit the financial reports of PIEs.
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