Ahmad Shahrul Mohamed Cheong Thoong Farn Hooi Kok Mun
Josephine Phan Su Han Lee Tuck Heng Lock Peng Kuan Mohamed
Raslan Abdul Rahman Norazman Hashim Quay Chew Soon Sukanta
Kumar Dutt Prof. Takiah Mohd Iskandar Tang Seng Choon Thong
Foo Vung Walter Sandosam
1. Structure of the Board
1.1
The Auditing and Assurance Standards Board (AASB) is a
functionally independent standard-setting body designated by,
and operating under the auspices of the Malaysian Institute of
Accountants (MIA).
2. Objectives
2.1
To serve the public interest and strengthen the accountancy
profession in Malaysia.
2.2
To promote adherence to high quality professional standards and
furtherance of international convergence of standards.
2.3
To support the accountancy profession in continuously developing
and disseminating guidance for auditing and assurance services.
2.4
To consider new or revised International Auditing and Assurance
Standards and other pronouncements issued by the International
Auditing and Assurance Standards Board (IAASB) for adoption.
2.5
To review exposure drafts and other consultative documents
issued by IAASB and to submit comments thereon.
2.6
To consider practice guides on issues not covered by auditing
standards for the application of members in the performance of
their respective duties.
2.7
To review and consider any other issues and developments in
other jurisdictions which relate to auditing practices in
Malaysia.
2.8
Contributing to efforts to advance public understanding of the
roles and responsibilities of external auditors and the
providers of assurance services including the sponsorship of
research.
2.9
To speak on public interest issues where the
profession’s expertise is most relevant.
3. Responsibilities
3.1
To develop and submit to the Council of MIA an annual plan that
specifies AASB’s strategic direction, priorities and agenda
including a report on how projects were selected and priorities
set.
3.2
To implement an effective working process for all projects and
commission task forces, advisory groups or other groups, as
appropriate, to aid in the development of auditing and assurance
standards, guidelines or other materials.
3.3
To communicate with and seek input from stakeholders on a timely
basis.
3.4
To advise MIA as to the adequacy of human and financial
resources to accomplish the AASB’s objectives.
3.5
To recommend and sponsor auditing and assurance research in
Malaysia, particularly on issues that may be of relevance to the
Malaysia environment.
3.6
To have the MIA Council review the effectiveness of the AASB’s
process at least once every 3 years.
4.
Composition of
Members
4.1
Selection criteria
4.1.1
The best person for the job;
4.1.2
A balance between the personal and professional qualifications
of a nominee and representational needs;
4.1.3
Members should be represented by the sector of the accountancy
profession, size of organisation and level of economic
development;
4.1.4
Candidates for appointment as public members may be put forward
by any individual or organisation; and
4.1.5
For the first board, however, the public members will be
nominated by the MIA’s Nominating Committee.
4.2
Composition of Members
Composition
1 Voting Chairman
Nominated by AASB members and appointed by MIA Council (First
Chairman appointed by MIA Council)
14 Voting Members
Recommended by MIA’s Nominating Committee and appointed by MIA
Council
5 Non-voting Observers
By invitation determined by MIA Council
4.3
14 Voting Members
4.3.1
There should be no less than 14 voting members with:
a)
7 representatives from the accounting firms;
b)
3 public members; and
c)
4 other nominated members.
4.3.2
The 3 public members could include amongst others,
representatives from the:-
a)
Minority Shareholders Watchdog Group;
b)
Federation of Public Listed Companies Berhad;
c)
The General Council of the Bar (generally known as The Bar
Council);
d)
Malaysian Investors Association;
e)
Malaysian Institute of Directors;
f)
The Institute of Internal Auditors Malaysia; and
g)
Malaysian Institute of Management.
4.3.3
All members are subject to rotation.
4.4
Non-Voting Observers
a)
Bursa Malaysia Berhad;
b)
Companies Commission of Malaysia;
c)
Jabatan Audit Negara;
d)
Bank Negara Malaysia; and
e)
Audit Oversight Board.
4.4.1
Observers may attend the AASB meetings, have privilege of the
floor, and participate in projects, but have no vote.
4.4.2
The observers would be expected to possess the technical skills
to participate fully in the AASB meetings regularly to maintain
an understanding of current issues.
4.5
Subject Matter Experts
4.5.1
Subject Matter Experts, if necessary, may be invited at specific meetings, to provide their view to the AASB.
5. Terms of members
5.1
One third of the AASB membership subject to retirement every
year. The retiring AASB member shall be eligible and may offer
himself/herself for re-appointment by MIA Council.
5.2
Continuous service on the AASB is limited to six consecutive
years, unless that member is appointed to serve as Chair for a
further period of not more than three years.
5.3
Notwithstanding subsection 5.1, the first members referred to in
section 4 shall serve as AASB members from the date of their
appointments until the third year of the establishment of the
AASB, thereafter one third of the AASB members be subject to
retirement in accordance with subsection 5.1.
6. Members'
Code of Conduct
6.1
AASB members are required to sign a Code of Conduct on appointment/re-appointment declaring that they will act in the public interest and with integrity in discharging their roles.
7. Meeting
Procedures
7.1
Quorum for a meeting requires the presence, in person or by
simultaneous telecommunications link of at least 10 appointed
members.
7.2
The meeting shall be chaired by the Chairman. In the event of
his absence; the members present shall elect one of their
members to take the chair for the duration of the meeting.
7.3
Meeting of AASB shall be held at least 5 times a year.
Additional meetings and conference calls maybe convened to
achieve AASB’s tasks.
7.4
Each member of AASB has one (1) vote.
7.5
The affirmative vote of at least two-thirds of members present
at a meeting in person or by simultaneous telecommunications
link is required to approve or withdraw Standards and Practice
Statements as well as Exposure Drafts.
7.6
Any voting member of AASB who fails to attend in any 12 month
period from the appointed date, at least 50% of all the meetings
of AASB shall, in the absence of circumstances that in the
opinion of the Chair are extenuating, automatically ceases to be
a member of the AASB at the end of the year which he or she was
in default.
7.7
The AASB meetings and agenda papers are to be in English, which
is the official working language of MIA.
8.
Reporting
8.1
AASB shall publish an annual report outlining its work program,
activities and progress made in achieving its objectives during
the year.
8.2
MIA Council shall review AASB’s membership and Terms of
Reference annually/when appropriate to ensure that they continue
to meet the needs of the AASB and the public.
9. Amendments to
the Terms of Reference
9.1
The AASB members may propose amendments of the Terms of
Reference for the consideration of the MIA Council. In the event
of MIA Council wishes to amend the Terms of Reference other than
on the recommendation of the AASB, the AASB members shall be
given the opportunity to discuss such changes and to represent
their views to the MIA Council before any changes are approved.
