SC URGES CONSISTENT HIGH-QUALITY AUDITS FOR PUBLIC INTEREST ENTITIES

KUALA LUMPUR, July 24 (Bernama) -- The Securities Commission Malaysia (SC) has urged audit firms to intensify efforts to achieve consistent performance across all public interest entities (PIEs) audit engagements.

In a statement, the SC emphasised the importance of talent development and addressing staff workload concerns to maintain high-quality audits.

"With audit quality being a shared responsibility, the Audit Oversight Board (AOB) continues to work with key stakeholders to drive improvements in the financial reporting ecosystem," the SC said.

The AOB's Annual Inspection Report 2023 noted a slight improvement in auditors' performance based on the year's inspection results.

The report highlighted a decrease in the percentage of inspected engagements referred for enforcement, dropping to 16 per cent in 2023 from 18 per cent in 2022.

However, there was an overall increase in engagements requiring specific remediation measures, a trend the AOB closely monitors.

"These measures, imposed on audit firms and engagement partners, are intended to drive improvements in auditors’ professional scepticism and technical expertise in relevant auditing and accounting standards," the report stated.

According to the statement, the 2023 AOB inspection included assessments of 50 partners and 50 audit engagements across 15 audit firms, including the nine major audit firms.

These firms collectively audit 78 per cent of the total number of public-listed companies (PLCs), representing 95 per cent of the total market capitalisation of PLCs in Malaysia.

The nine major audit firms also collectively audit 1,188 schedule funds (SF) with a net asset value (NAV) of RM675 billion, representing 97 per cent of the total NAV of SFs in Malaysia.

-- BERNAMA