FAQs


Surveillance and Enforcement

Practice Review

Q2 What is Practice Review?
A2 Practice Review is a process in which the audit practice of a member firm is reviewed by the practice review department of the Institute. It is a process where the standards and procedures of an audit practice are assessed to determine its compliance to international professional standards, legal and regulatory requirements. Practice Review is now an accepted form of self-regulation binding the accountancy profession. Systems of Practice Review are already a norm in countries such as Canada, Australia, New Zealand, United Kingdom, Hong Kong and Singapore.
Q3 Why should we have Practice Review?
A3 Practice Review is intended to provide quality assurance services and assist practitioners to maintain and improve their audit quality. The implementation of Practice Review will create awareness among practising members to the need to maintain a high level of professional standard in their work regardless of whether they are practising as sole practitioners or as partners of large firms.
Q4 Where can we find out more about the Practice Review Process?
A4 The practice review process can be found in Section 550 of the By-Laws (on Professional Conduct and Practice) of MIA. In addition, Appendix VI on Statement on Practice Review for Section 550 should be referred to for more details and information on review procedures and conduct of members.
Q5 Can I be exempted from the Practice Review?
A5 All members in public practice offering audit services and their firms so engaged, must submit to Practice Review.

A member may be exempted from Practice Review at the discretion of the Practice Review Committee if the member in public practice holding a practising certificate completes a declaration in the prescribed form certifying that he/she is not engaged in public practice services in so far as it pertains to audit engagements during the preceding twelve (12) months and does not intend to so practise for the foreseeable future, or that he/she will be discontinuing public practice in so far as it pertains to audit engagements in the immediate future (that is a maximum of three (3) months from the date of selection of the firm).

Q6 What is the potential report that I will receive after the field visit?
A6 Type 1 – Satisfactory
Where it considers that minimal significant weaknesses were observed and the member firm has adequately complied with applicable professional standards, legal and regulatory requirements in the performance of its work.

Type 2 – Assurance on compliance required
Where it considers that the member firm has some significant weaknesses which were not pervasive in complying with applicable professional standards, legal and regulatory requirements in carrying out the work in certain areas of the engagements reviewed.

Type 3 – Follow-up review
Where it considers that the member firm has some significant weaknesses which were pervasive in complying with applicable professional standards, legal and regulatory requirements during the course of carrying out the work of the engagements reviewed in which the work performed and evidence obtained thereon were inadequate and/or inappropriate. Thus the basis needed to form the opinions expressed on those engagements was not established.