Page 13 - Inspection Report 2018

The AOB notes that the Top 10 Audit Firms continued to manage the increase in attrition rates over the years
by intensifying recruitment activities. As illustrated in Chart 4, the Staff to Partner (Managerial) ratios remained
fairly constant over the past three years. This is a key mitigating point as it shows that supervision of staff is not
compromised despite the attrition challenge faced.

Further illustrated in Chart 5 is the increasing trend
Chart 4
Staff to Partner and Staff to manager of the overall staff headcount from 2016 to 2018 in
anticipation of future attrition challenges.
ratio

Staff/Partner ratio Given the continuous increase in headcount from
40 Staff/Manager ratio the recent years, salary costs have also increased as
illustrated in Chart 6.

30 29 29 28 Based on the analysis of growth in audit fees as

compared to growth in salary costs in Chart 6, audit
Ratio 20 fees appeared to increase over the years in tandem
with the increase in salary costs.

10
6 6 6

0
2016 2017 2018

Source: AOB Analysis – Top 10 Audit Firms in Malaysia

Chart 5 Chart 6
Audit Staff Headcount Growth in Audit Fees vs Growth in

Managerial Salary Costs
Non-Managerial
8,000 Overall Audit Fees
1,200
6,572 Salary Costs
6,280 6,389 1,042
6,000 5,400 1,000
5,221 5,254 917 966
Headcount number 4,000 Amount (RM million) 800

600
2,000 467 496 519

849 925 942 400
0 200
2016 2017 2018 2016 2017 2018
Source: AOB Analysis – Top 10 Audit Firms in Malaysia Source: AOB Analysis – Top 10 Audit Firms in Malaysia

AUDIT OVERSIGHT BOARD
ANNUAL INSPECTION REPORT 2018 11

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