Discuss the Role of Malaysian Aob

Discuss the role of Malaysian AOB ( size up superintendence Board) When was the AOB set up? The scrutinize supervising Board (AOB) is breaked under explode IIIA of the Securities centering Act 1993 (SCA) which came into force on 1 April 2010 to fire and develop an powerful scrutinize oversight textile and to promote trustingness in the quality and authenticness of analyseed fiscal statements in Malaysia. The chronology of events of establishing AOB in Malaysia is as follow September to October 2007 Budget 2008 resolution by YAB PM Government leave aloneing establish a Public Companies score Oversight Board under the aegis of the SC.Consultations held with industry groups and regulators. January to April 2008 Appropriate analyse oversight framework for Malaysia Securities Commission (Amendment) visiting card 2009 which contains the establishment and give-up the ghosts of the AOB passed in both Houses of Parliament. declination 2009 Securities Commission (Amendm ent) Bill 2009 which contains the establishment and functions of the AOB passed in both Houses of Parliament. 1 April 2010 dowery IIIA Securities Commission (Amendment) Act 2010 came into force. (Establish of Audit Oversight Board) What is it suppose AOB to do?Under Part IIIA of the SCA 1993, AOB is amenable to 5 major functions in locate to assist the Security Committee (SC), which listed as below (i)Standard setting AOB has the power to plow the Malaysian Institute of Accountants (MIA) to establish, adopt, amend, modify, alter or by all combined ways, the analyseing and estimable standards to be applied by ushered examineors. It is alike responsible to implement policies and programmes in ensuring an sound audit oversight system in Malaysia. (ii)Registration Auditors of public interest entities (PIEs) must biography and recognized by AOB to ensure the auditing operate is fit and proper.It is an offence for non-registration. (iii)Sanctions AOB has the power to con fab appropriate sanctions against registered tenders who fail to comply with auditing and ethical standards. (iv)Inspection In accordance with division 31V(1) of Part IIIA of the SCA, the registered audit firm and meeter impart be subject to inspections by the AOB to prise the degree of compliance withthe auditing and ethical standards by the auditor and the quality of the audit reports inclined(p) by the auditor relating to the audited financial statements of the PIEs. v)Inquiry Section 31W of the SCA on the other hand empowers AOB to give birth an inquiry if at that place is a causa to believe that any auditor has contravened any provisions of Part IIIA of the SCA, any figure enforce under section 31O(4) of the SCA or any written notice or guidelines issued by the SC. Why do we ingest an AOB? The need of audit oversight tabular array (AOB) is to make sure all audit procedure is follow probably by the auditor. By doing this it is means that AOB is the one who obstruct the work of audit.In other way it as act audit oversight framework in Malaysia. It is important to squander AOB is because by doing so, audit work ar more than(prenominal) sure. Besides that, AOB needed to promote confidence in the quality and reliability of audited financial statements in Malaysia. There atomic number 18 some(prenominal) cases which engage the quality of audited reported such(prenominal) as Enron, Parmalat, World Com, Transmile and etc. By having a more independent ships company the AOB, which promote more confidence and reliable report. Thus create interest for sendor to invest in Malaysia market.What is the AOB achieved so far? base on the news of AOB on The acuity magazine on 4 October 2012. AOB has organise an ex officio collaboration in audit oversight with the Japan Financial service Authority and the Certified Public Accountants Audit Oversight Board (CPAAOB). This collaboration would facilitate audit regulators to oversee cross boundary line audits towards enhancing the soundness of the securities markets and investor protection in the single countries, said by chairman Nik Mohd Hasyudeen YusoffThe SC said the collaboration was the AOBs stolon arrangement with other regulators outside the Asean region. The official cooperation give allow the audit regulators to treat information upon request, with respect to foreign audit firms that fall within the respective regulatory jurisdiction. This will, eventually, promote the confidence of overseas users in using the audited reports in Malaysia. What are the findings and consequences of AOB so far? After the establishment of AOB, on that point are a certain major change in the audit field.All audit firm are require to register their company with AOB in Malaysia. The register of audit firm is need for AOB to continue criterion the audit work of the firm. Based on AOB, either company partner will be measure their work every few category. Audit partner licenses will also be forfeit if name their work are not in tit he correct procedure. This action, have cause many auditor to do more work or more working paper. By doing so, much price will be incurred to the audited firm.The reason auditor doing so is to search for more audit evidence and also to avoid cosmos sack as an auditor. On 16 July 2012, there are partner being penalized by AOB after few year of establishment of AOB. The senior partner of a mid-tier account firm is the first auditor to be penalized for breaching a condition imposed when he registered with the board. Last Thursday, Alvin Tee Guan Pian of UHY Malaysia was reprimanded for harm to comply with the relevant requirements of the recognized auditing standards in Malaysia i. . the International Standards on Auditing. ( Enrol Oh, Starbiz, 2012) Audit oversight board is also disposed(p) the power to penalized a auditor if instal misstatement in audit report. By doing so, the auditor report are more reliable to external user due t o there is another independent body which is the AOB involve in the Malaysia audit field. In a whole, the establish of AOB had promote more wages to the audit firm compare to disadvantage. It is equivalent to what other countries have experienced?Malaysia are not the first rural area which establish AOB, but Malaysia are the 2nd country in ASEAN country and top tenth is Asian country which establish AOB. This has say that Malaysia auditing practices are following the improvement of foreign standard. Besides that, also show Malaysia is disturb about the change in accounting standard to other country. AOB in other countries which have already establish are similarly same in their function of standard setting, registration, sanctions, inspection and inquiry.