KUALA LUMPUR: The Securities Commission Malaysia’s (SC) Audit Oversight Board (AOB) revealed that the number of enforcement cases from inspected engagements in 2024 had fallen significantly to eight per cent, compared with 16 per cent recorded in 2023.
In its Annual Inspection Report 2024, the AOB said the positive outcome reflects the continuous efforts of audit firms and individual auditors to enhance audit quality.
"The AOB’s inspection in 2024 covered assessments of 40 partners and 40 audit engagements across 13 audit firms, including the major firms that collectively audit 76 per cent of public-listed companies, representing 95 per cent of Malaysia's total market capitalisation.
"These firms also audit 1,319 schedule funds, accounting for 99 per cent of the total net asset value of schedule funds nationwide," the SC said in a statement today.
According to the SC, the report provides insights into Audit Quality Indicators of its registered audit firms, which include compiled statistics used by the AOB to assess audit firms’ performances.
These indicators show that both major and other audit firms are actively addressing challenges such as resource adequacy and high staff turnover, with efforts aimed at improving workforce stability and operational capacity, it noted.
The AOB also encouraged firms to build on these initiatives by ensuring consistent audit quality across all engagements and addressing the deficiencies and findings highlighted in the report.
It said improvements in firms’ quality management systems, specifically the monitoring and implementation of internal quality controls, are critical to supporting audit quality.
"In addition, the Annual Inspection Report highlighted AOB’s efforts to strengthen the monitoring and supervision of auditors, such as keeping a watch on auditor resignations and the effectiveness of the firm’s remediation measures.
"The AOB remains committed in its ongoing efforts to strengthen audit capacity and capability, audit quality and governance of its registered firms," it added. - Bernama
