Categories: Exposure DraftPublished On: 21/07/2005
21 July 2005
Auditing – Exposure Draft ED 1012/2005




The Malaysian Institute of Accountants has approved the release of this exposure draft for distribution to members, professional accountancy bodies, regulators and other interested parties for comment only. The exposure draft may be modified in the light of comments received before being issued in the form of an Approved Standard on Auditing.

Comments should be submitted in writing so as to be received by 15 October 2005. Unless respondents request confidentiality, their comments are a matter of public record.

All comments are to be directed to:

The Chairman
Accounting and Auditing Committee
Dewan Akauntan
2, Jalan Tun Sambanthan 3
50470 Kuala Lumpur

Tel : 03 2279 9200
Fax : 03 2273 1016

E-mail :
Website address :

The purpose of this International Auditing Practice Statement (IAPS) is to provide guidance to the auditor in planning and performing auditing procedures for financial statement assertions related to derivative financial instruments.

The standard focuses on:
– Responsibilities of management and those charged with governance.
– The auditors’ responsibility related to derivative financial instruments.
– The need for special skill and knowledge to plan and perform auditing procedures.
– Matters to be considered in completing a risk assessment and with respects to internal control.
– Materiality in relation to derivatives and derivative transactions.
– Guidance on the additional considerations about hedging activities.
– Management representations and communication with respect to derivatives.

Description: IAPS1012-NEW

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