Statistics List

The FSR carried out the following activities during the financial year ended 30 June 2022.

Review of Financial Statements

To monitor compliance with statutory and other requirements, approved accounting standards and approved auditing standards in Malaysia in relation to financial reporting, the FSRC reviewed financial statements of listed companies selected on a random basis and cases of public interest.

For the financial year ended 30 June 2022, the FSRC conducted a total of 13 reviews, which included 7 new reviews of financial statements of public-listed companies and closed 9 of these reviews.

A summary of the categorisation of closed reviews is provided below:

Total
Cases b/f from the previous financial year 6
Cases initiated by referred to FSRC 7
Cases closed during the financial year (9)
Cases in progress as at 30 June 2022 4

Cases closed during the financial year

Click HERE for details of penalty tariff.

Monitoring of Public Interest Cases

The FSRC actively keeps track of cases of public interest reported in the media on financial reporting irregularities and ensures prompt action is taken to address the issues.

During the financial year ended 30 June 2022, cases originating from media reports and referrals from other regulators that prompted further analysis by the Institute were as follows:

Total
Cases b/f from the previous financial year 3
Cases initiated 19
Cases closed during the financial year (16)
Cases referred/to be referred to the Investigation Committee
Cases in progress as at 30 June 2022 6
Financial Statements Review
Financial Statements Review Committee
Common Findings by FRSC

* Financial Statements Review Committee imposes a penalty tariff, which came into effect in 2007. The tariff is divided into three categories. Categories of penalty differentiate the severity of non-compliances.

The categories of tariff are as follows:

Category 1 prescribes the minimum action. This category relates to housekeeping issues, which require tidying up of the financial statements. It requires members who are responsible for the preparation of the financial statements to take necessary action on the financial statements and members who are responsible for reporting on them to be informed of the action.

Category 2 applies when there are substantial numbers of non-compliances with disclosure requirements of the approved accounting standards. It requires members who are responsible for the preparation of the financial statements or for reporting on the financial statements to take the necessary corrective action. Members will be given a warning letter and will be informed that the financial statements of the company could be put under surveillance for up to two (2) consecutive years.

Category 3 applies when there are major non-compliances with the requirements of the approved accounting standards and auditing standards involving material reporting discrepancies and/or deficiencies, caused by the member’s failure to discharge his/her professional responsibilities with diligence and due care and/or the firm’s weaknesses in the system of quality control.

Under category 3, action to be taken on members who are responsible for the preparation or for reporting on the financial statements could Include referring the members to the Investigation Committee or Practice Review Committee of the institute and/or other regulatory bodies for appropriate action or serving the members with warning letters or reprimands, or other appropriate measures. The financial statements of the company concerned could be put under surveillance for up to four (4) consecutive years.