Page 14 - Inspection Report 2018

GrowinG for a

Better future

Chart 7
Audit Landscape in 2010 vs 2018

Audit Landscape in 2010 Audit Landscape in 2018

Partnership with Partnership with
≥ 10 registered Partnership with ≤ 2 registered
partners ≥ 10 registered partners
7% partners
Partnership with 29%
3-9 registered 18%
partners
22%

Partnership with
≤ 2 registered
partners
71%

Partnership with
3-9 registered
partners
Source: AOB 53%

When the AOB was first established in 2010, PIE auditors in Malaysia predominantly comprised
partnerships with 2 or fewer registered partners. The AOB has continuously advocated for audit firms in
Malaysia to grow and build their capacity, either via mergers and acquisitions or through organic growth.

By 2018, a significant change in the composition can be seen in terms of the size of audit firms in
Malaysia auditing PIEs. The proportion of audit firms with 2 or fewer registered partners has reduced
from 71% of the audit market in 2010 to only 29% in 2018.

In August 2018, the New Criteria for Registration with the AOB was introduced, whereby one of the
criteria for audit firms is to have a minimum of 3 registered audit partners . This is impetus for smaller
audit firms to grow their capacity to audit PIEs and schedule funds.

AUDIT OVERSIGHT BOARD
12 ANNUAL INSPECTION REPORT 2018

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