Surveillance
Financial Statements Review (FSR) is one of the Institute’s surveillance functions, set up to monitor the practice and quality of financial reporting.
By advocating for high quality financial reporting, the Institute supports the transparency, accountability and competitiveness of business and the capital market, thereby strengthening the credibility of the accountancy profession in Malaysia and protecting the public interest.
The review of financial statements is carried out by the Financial Statements Review Committee (FSRC), a committee established by the Council of the Institute under the Accountants Act 1967.
The primary objective of the FSRC is to monitor the quality of financial statements and reports that are prepared by or within the responsibility of members of the Institute, for the purpose of determining compliance with statutory and other requirements, approved accounting standards and approved auditing standards in Malaysia.
Common findings arising from the reviews are shared with members with a view to improve the quality of financial reporting.
The FSRC works closely with other regulators with an aim to promote high quality standards in financial reporting. The FSRC also looks into matters referred to it by other regulators and may review those financial statements where there are public interest issues.
In addition, the FSRC monitors the media as part of a proactive surveillance approach on potential accounting, irregularities and reporting deficiencies in public listed companies and public interest entities.
Where necessary, should a member be found to have breached any Institute’s By-Laws and/or other statutory requirements in the preparation of and reporting on the financial statements, appropriate action will be taken. The action to be taken depends on the types of penalty tariffs issued that are determined based on the findings of the reviewed financial statements.
The FSRC advocates for good financial reporting practices by publishing its findings in the Institute’s knowledge portal Accountants Today. The publications can be accessed at these links:
Financial Statements Review Annual Report 2024/2025
Financial Statements Review Annual Report 2023/2024
Financial Statements Review Annual Report 2022/2023
Financial Statements Review Annual Report 2021/2022
Financial Statements Review Annual Report 2020/2021
Financial Statements Review Annual Report 2019/2020
Common findings during the period July 2019 to June 2020
Common findings during the period July 2017 to June 2018
Common findings during the period July 2016 to June 2017
Common findings during the period July 2015 to June 2016
Common findings during the period July 2012 to June 2015
Common findings during the period July 2009 to June 2010
Common findings during the period July 2008 to June 2009