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This preface
has been approved by the Council of the Malaysian Institute of
Accountants (MIA).
The Council has determined that Approved Standards on Auditing for
members comprise:
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a. |
International Standards on Auditing (ISA) designated as AI and
approved by the MIA |
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b. |
Malaysian Standards on Auditing (MSA) designated as AM issued by
the MIA. |
In addition
to these promulgated standards, all statements issued by the Council
relating to recommended practices, including guidelines on auditing are
to be regarded as opinions on best current practice and thus form part
of Generally Accepted Auditing Principles (GAAP).
The Council may inquire into apparent failure by members to observe
Approved Standards on Auditing and Generally Accepted Auditing
Principles recommended by MIA or to disclose departures there from.
Guidance on the application and the compliance procedures in respect of
the approved Standards on Auditing is set out in the following sections:
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1. |
INTERNATIONAL STANDARDS ON AUDITING |
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2. |
MALAYSIAN STANDARDS ON AUDITING |
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3. |
COMPLIANCE WITH APPROVED STANDARDS ON AUDITING |
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4. |
DATE
FROM WHICH APPROVED STANDARDS ON AUDITING ARE EFFECTIVE |
I -
INTERNATIONAL STANDARDS ON AUDITING
The MIA as a member of the International Federation of Accountants (IFAC)
is committed to the Federation’s broad mission for the development and
enhancement of an accountancy profession able to provide services of
consistently high quality in the public interest. In working toward this
mission, the Council of IFAC has established the International Auditing
Practices Committee (IAPC) to develop and issue, on behalf of the IFAC
Council, standards and statements on auditing and related services. IAPC
believes that the issue of such standards and statements will help to
improve the degree of uniformity of auditing practices and related
services throughout the world.
As a condition of its membership, the MIA is obliged to support the work
of IFAC by informing its members of every pronouncement issued by IFAC,
to work towards implementation, when and to the extent possible under
local circumstances, of those pronouncements and specifically to
incorporate IFAC’s International Standards on Auditing (ISA’s) in
national auditing pronouncements.
The MIA has determined to adopt the ISAs as the basis for approved
standards on auditing and related services in Malaysia. Council will
prepare an explanatory foreword on the status on each approved ISA that
is adopted.
In the event that an ISA contains guidance which is significantly
different from Malaysian law or practice, the explanatory foreword to an
approved ISA will provide guidance on such differences.
Where the Council deems it necessary, additional standards may be
developed on matters of relevance in Malaysia not covered by ISAs.
Members of MIA are expected to comply with the standards on auditing and
related services issued by MIA. Apparent failure to do so may lead to an
investigation into the member’ or members’ conduct by MIA.
It is impractical to establish standards on auditing and related
services which universally apply to all situations and circumstances an
auditor may encounter. Therefore an auditor should consider the adopted
standards as the basic principles which he should follow in performing
his work. The precise procedures required to apply these standards are
left to the professional judgement of the individual auditor and will
depend on the circumstances of each case.
II
- MALAYSIAN STANDARDS ON AUDITING
MSA are produced and issued by the MIA as part of its efforts to define
standards of auditing and harmonise auditing practices in Malaysia.
MSA are issued to augment ISA approved by the MIA. MSA are intended to
cover topics not dealt with in an ISA or topics where particular
circumstances of the Malaysian environment warrant a domestic standard
written specifically to address those circumstances. When necessary,
further guidance will be issued to members.
III - COMPLIANCE WITH APPROVED STANDARDS ON AUDITING
The Council expects members who assume responsibilities as independent
auditors to observe approved Standards on Auditing in the conduct of
their audits under all reporting frameworks. Reporting frameworks are
determined by legislation, regulation and promulgations of the Malaysian
Institute of Accountants and where appropriate mutually agreed upon
terms of reporting.
The onus will be on members to use their best endeavours to ensure that
such standards are also observed by those persons who assist them in
their work.
An audit report should contain a positive statement to the effect that
the audit has been conducted in accordance with Approved Standards on
Auditing issued by the Malaysian Institute of Accountants.
The Council has determined that the principles and spirit of the
standards must be observed and the application of the standards
including the attached appendices in totality is recommended.
Approved Standards on Auditing apply to material matters. However, an
applicable reporting framework may require that materiality be
disregarded. Under such circumstances the non-compliance should be
reported when observed during the course of the audit.
The Council may inquire into apparent failures by members and those
persons under their supervision to observe approved Standards on
Auditing and generally accepted auditing principles. Any failure to
observe approved Standards on Auditing could be regarded as conduct
discreditable to the profession of an accountant and might lead to
disciplinary action being taken against the member or members concerned.
Members are also advised that a court of law may, when considering the
adequacy of the work of an auditor, take into account any pronouncements
or publications which it thinks may be indicative of good auditing
practice. Approved Standards on Auditing are likely to be so regarded.
IV
- DATE FROM WHICH APPROVED STANDARDS ON AUDITING ARE EFFECTIVE
The effective date from which members are expected to observe approved
Standards on Auditing is set out in the ‘Contents’ page of the ‘Approved
Standards on Auditing’ section of the members’ handbook and on each
standard. |
