Page 20 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

Strategic Enforcement

The AOB’s enforcement function is a vital component of its mission to promote confidence in the
quality and reliability of audited financial statements of PIEs and schedule funds in Malaysia. Its
enforcement actions are not just about taking registrants to task for non-compliances but also used to
deter others from engaging in similar behaviour.

Diagram 6
The AOB’s Regulatory Principles

Proportionality
Enforcement Goals
The AOB does not take any action that exceeds
what is required to achieve the objective of strategic
enforcement • Mitigate the risk of future
failures
Efficiency • Send a strong signal that
non-compliance with
The AOB is mindful that to have the necessary auditing standards, ethical
impact, the matter has to be dealt with in a timely standards, laws and
manner regulation will be taken
seriously
• Positively influence
Achieving the desired outcome
behaviour of the firm
and individual auditor in
The AOB focuses on identifying and prioritising
efforts in taking enforcement actions that breach
will effectively steer the AOB registered and • Ensure consistency in the
recognised auditors’ behaviour towards its regulatory actions taken
expectations of behaviour and conduct by the AOB

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

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