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Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia

The setting-up of the Malaysian Audit Oversight Board (AOB) in 2010 under the Securities Commission Amendment Act 2010 has extended the role of regulators into the statutory audit domain for public listed companies. Although the auditing profession in Malaysia has International Auditing Standards as...

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Main Authors: Ismail, Hashanah, Mustapha, Mazlina
Format: Article
Language:English
Published: David Publishing Company 2015
Online Access:http://psasir.upm.edu.my/id/eprint/43894/1/The%20audit%20oversight%20board%20and%20regulating%20audit%20quality%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/43894/
http://www.davidpublisher.com/Public/uploads/Contribute/553723d4681dc.pdf
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spelling my.upm.eprints.438942016-10-27T04:30:58Z http://psasir.upm.edu.my/id/eprint/43894/ Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia Ismail, Hashanah Mustapha, Mazlina The setting-up of the Malaysian Audit Oversight Board (AOB) in 2010 under the Securities Commission Amendment Act 2010 has extended the role of regulators into the statutory audit domain for public listed companies. Although the auditing profession in Malaysia has International Auditing Standards as prescribed minimum level of quality in the delivery of audit assurance services, self-regulation by the profession alone appears inadequate to ensure the delivery of quality audit services. With co-regulation, auditors now are monitored not just by the profession but also by a new statutory body with considerable regulatory powers to sanction auditors where quality of the audit process has been found wanting. This study solicits the opinions of auditors on their expectations of what the new regulator can achieve. Based on interviews with a sample of 30 auditors, the study finds that the majority believe that audit quality will be taken to a new level following AOB’s remit of registration of auditors, compliance inspection with International Standard on Quality Control (ISQC), monitoring of financial statement quality, and its power of sanctions. A review of AOB’s early years’ inspection confirms these expectations. David Publishing Company 2015 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/43894/1/The%20audit%20oversight%20board%20and%20regulating%20audit%20quality%20in%20Malaysia.pdf Ismail, Hashanah and Mustapha, Mazlina (2015) Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia. Journal of Modern Accounting and Auditing, 11 (3). pp. 138-142. ISSN 1548-6583 http://www.davidpublisher.com/Public/uploads/Contribute/553723d4681dc.pdf 10.17265/1548-6583/2015.03.002
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The setting-up of the Malaysian Audit Oversight Board (AOB) in 2010 under the Securities Commission Amendment Act 2010 has extended the role of regulators into the statutory audit domain for public listed companies. Although the auditing profession in Malaysia has International Auditing Standards as prescribed minimum level of quality in the delivery of audit assurance services, self-regulation by the profession alone appears inadequate to ensure the delivery of quality audit services. With co-regulation, auditors now are monitored not just by the profession but also by a new statutory body with considerable regulatory powers to sanction auditors where quality of the audit process has been found wanting. This study solicits the opinions of auditors on their expectations of what the new regulator can achieve. Based on interviews with a sample of 30 auditors, the study finds that the majority believe that audit quality will be taken to a new level following AOB’s remit of registration of auditors, compliance inspection with International Standard on Quality Control (ISQC), monitoring of financial statement quality, and its power of sanctions. A review of AOB’s early years’ inspection confirms these expectations.
format Article
author Ismail, Hashanah
Mustapha, Mazlina
spellingShingle Ismail, Hashanah
Mustapha, Mazlina
Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
author_facet Ismail, Hashanah
Mustapha, Mazlina
author_sort Ismail, Hashanah
title Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
title_short Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
title_full Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
title_fullStr Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
title_full_unstemmed Auditing the auditors: the audit oversight board and regulating audit quality in Malaysia
title_sort auditing the auditors: the audit oversight board and regulating audit quality in malaysia
publisher David Publishing Company
publishDate 2015
url http://psasir.upm.edu.my/id/eprint/43894/1/The%20audit%20oversight%20board%20and%20regulating%20audit%20quality%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/43894/
http://www.davidpublisher.com/Public/uploads/Contribute/553723d4681dc.pdf
_version_ 1643833700327096320
score 13.211869

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