Page 9 - Inspection Report 2018
P. 9
WHAT SHOuLd PIE
dIrECTOrS dO
WITH FINdINGS?
an audit engagement of the PIE, Given the AOB’s targeted and risk-based
including relevant matters for the Audit approach to inspection, the AOB’s inspection
Committee’s consideration in their reports should not be taken to provide an
appointment of their auditors; and assurance that the quality control of the audit
firm inspected, its audits or its audit clients’
(iv) Imposing additional registration financial statements are free from any
conditions on audit firms. deficiencies not specifically raised by the AOB.
In yet another first step for the AOB, Directors and in particular Audit Committees
while enforcement proceedings were are responsible for overseeing the PIEs’ financial
ongoing, additional registration reporting process. This oversight function can
conditions were imposed on individual be enhanced through increased engagement
auditors and the audit firm to curb the with their auditors. In 2018, the AOB issued its
auditors from signing the auditor’s inaugural AOB Annual Inspection Report which
reports of its PIE clients. This was due to was distributed to all PLCs. This is to facilitate
the severity and pervasiveness of and enhance the communication and
findings on several inspected audit engagement between the Boards of Directors
engagements. Such action on and/or the Audit Committees and their
registration conditions were imposed auditors.
with a view to safeguard the interest of
the capital market. The AOB strongly encourages directors and
Audit Committee members to understand and
In instances where there are breaches of laws discuss the findings and firm-level statistics
and regulations, the AOB will not hesitate to shared in this report with their auditors to
take action against individual auditors and ensure that risk areas specific to their entities
audit firms which can range from issuing are adequately addressed and to gauge the
public reprimands to revoking the registration audit firms’ commitment and approach to audit
of audit firms and its individual auditors with quality. Common inspection finding themes
the AOB. from the report should be considered by Audit
Committees in conducting their oversight
responsibilities.
AudIT OVErSIGHT BOArd
ANNUAL INSPECTION REPORT 2018 7
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