Page 22 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

2018 KEY STAKEHOLDERS ENGAGEMENT AT-A-GLANCE

25 January 2018

The AOB-MIA-ACCA Joint Study
on Enhanced Auditors’ Report: A
Review of First-Year Implementation
Experience in Malaysia

The AOB, MIA and the ACCA jointly issued the
Enhanced Auditor’s Report (EAR) – A Review of First-
Year Implementation Experience in Malaysia. The
study explored the impact of the first generation
of EAR issued in Malaysia, focusing on auditors’
communication with audit committees and the
perceptions as well as behaviour of investors.

Results of the study were based on the review of the
EARs and annual reports of 190 companies listed on
Bursa Malaysia with financial periods ended
31 December 2016. It also included survey
and focus group feedback from over 170 audit
committee members and investors.

Key findings:

• Audit committee discussions on financial
reporting risks with auditors and • Management teams are taking greater efforts
management are more focused and robust, to improve disclosures in annual reports,
putting audit committees in a stronger following discussions on KAMs; and
position to ensure accountability on behalf of
the investors; • The EARs have improved the relevance and
value of the auditors’ report. Investors have
• The audit process has been strengthened gained insights into the financial reporting
through more visible audit partner risks of the companies invested in and the
involvement in discussions with audit audit process.
committees due to the need for in-depth
deliberation and discussion of Key Audit The full report is available on the SC website.
Matters (KAMs) in particular;

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

T_2018 AOB AR PART 1.indd 20 10/04/2019 5:03 PM