Page 56 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL INDEPENDENT AUDITORS' REPORT TO THE AUDIT OVERSIGHT
REPORT
2018 BOARD, SECURITIES COMMISSION MALAYSIA

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the Audit Oversight Board (AOB), which comprise the statement
of financial position as at 31 December 2018, and the statement of profit or loss and other comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies, as set out on pages 34 to 52.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the AOB as at 31 December 2018, and of its financial performance and its cash flows for the year then ended
in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our auditors’ report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the AOB in accordance with the By-Laws (On Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (By-Laws), and the International Ethics Standards Board
for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other
ethical responsibilities in accordance with the By-Laws and the IESBA Code.

Responsibilities of Board Members of the Securities Commission Malaysia for the
Financial Statements

The Board Members of the Securities Commission Malaysia (SC) are responsible for the preparation of
financial statements of the AOB that give a true and fair view in accordance with Malaysian Financial
Reporting Standards and International Financial Reporting Standards. The Board Members are also
responsible for such internal control as the Board Members determine is necessary to enable the preparation
of financial statements of the AOB that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the AOB, the Board Members of the SC are responsible for assessing
the AOB’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Board Members of the SC either intend to
liquidate the AOB or to cease operations, or have no realistic alternative but to do so.

54 | PART TWO STATEMENTS