KUALA LUMPUR: The Securities Commission Malaysia’s (SC) Audit Oversight Board (AOB) has issued a circular to auditors and audit committees on the importance of high-quality audit of financial reports of public interest entities (PIEs) in light of the challenges posed by the Covid-19 pandemic.
In a circular to auditors and audit committees, the AOB, which regulates the auditors of PIEs, said the board is closely monitoring the impact of the pandemic on the quality of PIEs’ financial reports.
“We are cognisant of the difficulties faced by auditors who may need to conduct remote auditing and have limited access to clients’ books and records. Audit engagements could take a longer time, leading to delays in meeting reporting or regulatory deadlines,” said SC chairman Datuk Syed Zaid Albar.
To ease the challenges faced by the firms, the AOB has announced that the audit regulator will only commence inspection of audit firms of PIEs after May 15.
“Firms that are required to submit any remedial action plan to the AOB will be given an extended deadline till 30 June,” he said.
The circular by AOB also extended the deadline for payment of registration fees to July 1 and deferred the implementation of Audit Transparency Reports of large registered audit firms of the AOB to 2021, as the board is aware that audit firms’ and PIEs’ immediate concern is to ensure the continuity of their business operations and ability to withstand market and industry volatility.
“Nevertheless, the SC’s AOB is of the view that the current situation should not undermine the delivery of high-quality audits.
“Those charged with governance, in particular audit committees, should be extra vigilant and cautious to ensure reliable, audited financial information is provided to investors and shareholders for informed decision making,” he added.
The AOB is responsible for the registration of auditors of PIEs or scheduled funds defined in Schedule 1 of the Securities Commission Malaysia Act 1993.
There are currently 40 audit firms and 330 auditors registered with the AOB to audit the financial reports of PIEs. – April 7, 2020, Bernama
