Page 32 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

STATEMENT ON

GOVERNANCE

About the Audit Oversight Board • Convicted of an offence under the law;
• Declared a bankrupt;
The AOB was established under Part IIIA of the • Fails to attend three consecutive Board
SCMA and its mandate is to assist the SC in meetings without leave; or
discharging its regulatory function by regulating • Not capable of discharging his or her duties.
auditors of PIEs and schedule funds to promote
confidence in the quality and reliability of the The SCMA requires a Board member to manage
audited financial statements. The AOB also exercises conflict of interest by disclosing his or her interest in
oversight over any person who prepares a report any matter under discussion by the Board. Once a
relating to financial information of PIEs and schedule disclosure is made, he or she:
funds, in relation to capital market activities.
• Shall neither take part nor be present in any
The AOB’s responsibilities, powers and authorities deliberation or decision of the Board or its
are defined in Part IIIA of the SCMA. committees; and

• Shall be disregarded for the purposes of
Board Members constituting quorum of the Board or its
committees, relating to the matter.
The SC appoints the Board members of the AOB.
The Board of the AOB comprises a Non-Executive
Chairman, an Executive Officer and five other Non- Responsibilities of the Board
Executive Members who are representatives from
the regulators, namely BNM and SSM, the legal The Board is responsible for assisting the SC in
profession and private sector. The Executive Officer is discharging its functions under the SCMA.
responsible for the day-to-day administration of the
AOB. The responsibilities of the Board include to:

Profiles of the Board Members of the AOB are set • Implement policies and programmes in
out on pages 26 to 29. ensuring an effective audit oversight system in
Malaysia;
The Non-Executive Chairman of the AOB is
appointed for a term of three years and is eligible • Register or recognise auditors of PIEs or
for reappointment upon completion of his term schedule funds for the purposes of the
whereas the Non-Executive members of the Board SCMA;
are appointed for a term of two years and are
eligible for reappointment. • Direct MIA to establish or adopt, or by way of
both, the auditing and ethical standards to be
A person is disqualified from holding the office of a applied by auditors;
Board member of the AOB if he or she is:

30 | PART TWO STATEMENTS

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