Page 15 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

Following the review, which incorporated input from the audit profession, the AOB announced the New
Criteria for Registration at the annual AOB Conversation with Auditors of PIEs and Schedule Funds on
16 August 2018. To address the above concerns, the criteria below are designed to enable audit firms in
Malaysia to further grow and increase their capacity for the purpose of strengthening audit quality and
achieving the desired outcomes:

Improvement of the audit firms’ internal capacity

A minimum of three audit partners in the audit firm must be registered with
the AOB for audits of PIEs and schedule funds

Strengthening audit firms’ governance over their audit partners

An audit firm registered with the AOB shall ensure that all its audit partners
registered with the AOB are attached to only one audit firm at all times. A
person who applies for registration with the AOB must be an audit partner attached
only to one audit firm unless otherwise exempted by the AOB

Greater accountability among audit firms over the EQCR process

The EQCRs of PIE and schedule fund audits must be carried out by an AOB-
registered partner of the same audit firm appointed as the auditor of the PIE or
schedule fund

Continued involvement in PIE or schedule fund audit clients

The continued registration of an audit firm with the AOB is subject to the audit
firm having at least one PIE or schedule fund audit client in the last 24
months

PART ONE FOSTERING HIGH QUALITY INDEPENDENT AUDITING IN THE CAPITAL MARKET | 13

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