Page 21 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

EFFECTIVE COMMUNICATION AND COLLABORATION WITH

STAKEHOLDERS

The quality of financial reporting is a shared responsibility among directors, management, auditors, and
regulators. In 2018, the AOB continued to reach out to a wide cross section of stakeholders.

The AOB’s ongoing involvement and contribution at global and regional levels through the International
Forum of Independent Audit Regulators (IFIAR) and the ASEAN Audit Regulators Group (AARG) facilitated
mutual sharing of valuable insights into audit regulatory best practices. The AOB shared the Malaysian trends
and good practices observed from the AOB, MIA and ACCA joint study on the Enhanced Auditors’ Report: A
Review of First-Year Implementation Experience in Malaysia launched in January 2018. The AOB also
subsequently shared its experience with fellow regulators interested to conduct similar studies in their
respective jurisdictions.

Diagram 7
The AOB’s capacity building and collaborative efforts in 2018

Directors and management

• Worked closely with the SC’s Corporate Surveillance Department and Bursa Malaysia to engage
directors and management of PLCs as well as share key concerns and findings noted during the
AOB’s inspections

Auditors

• Continued to share the AOB’s regulatory expectations and common inspection findings through
speaking engagements and at the annual AOB Conversation with Auditors of PIEs and Schedule
Funds
• Engaged with the audit profession to identify solutions to address common inspection findings,
e.g. through Dialogue with Professional Bodies

Regulators

• Increased co-operation with the Accountant General’s Office to strengthen Malaysia’s audit
licensing process
• Participated in a regional roundtable discussion to contribute views and regulatory concerns from
the AOB’s experiences in relation to the consultation paper, Strengthening the Governance and
Oversight on the International Audit-Related Standard Setting Boards in the Public Interest, issued
by the Monitoring Group 1
• Shared key audit oversight and regulatory experiences with other foreign authorities such as the
Ministry of Finance of the People’s Republic of China, the Audit Oversight Board of Pakistan and
the Capital Markets Authority of Saudi Arabia

1 The Monitoring Group consists of the International Organization of Securities Commissions (IOSCO), the Basel Committee on
Banking Supervision (BCBS), the European Commission (EC), the Financial Stability Board (FSB), the International Association of
Insurance Supervisors (IAIS), the World Bank Group (WBG) and IFIAR.

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