The Malaysian Institute of Accountants (MIA) wishes to reiterate that the role of the approved statutory auditors is to provide reasonable assurance on whether the financial statements prepared by reporting entities are true and fair. Through the external audit, auditors play an important role in promoting confidence in the quality and reliability of audited financial statements in Malaysia.
In carrying out their statutory duties, auditors as members of the MIA are bound by the International Standards on Auditing (ISAs) and the profession’s code of ethics. Furthermore, the auditors of public interest entities (PIEs) are required to comply with Capital Market and Securities regulations and are subject to oversight by the Audit Oversight Board (AOB).
As such, auditors are required to comply with the requirements of the ISAs as adopted by the MIA and exercise professional scepticism in the conduct of their audits. The objective of audits can be achieved when auditors can perform their audits within a good corporate governance ecosystem and render their independent opinion without fear or favour.
Any issues that arise in the course of an audit should be resolved to the satisfaction of the auditors. Where the relationship between the reporting entity and its auditor is strained, the auditor may need to reconsider its role. That is part of the role of a professional, taking into account all circumstances and issues which impact the role.
The MIA demands the highest standards of ethical behaviour from accountants and auditors through adherence to the fundamental principles as enshrined in the ethics rules. The MIA appreciates that accountants and auditors continually strive to uphold the integrity of the accountancy profession.