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Malaysia - Report on the Observance of Standards and Codes (ROSC) : accounting and auditing (English)

Malaysia has made significant investments in developing efficient and well-regulated capital and financial markets, as well as strengthening the institutional framework for the regulation of the accounting and auditing profession. Good progress has been achieved in improving the quality and consistency of corporate financial reporting and corporate governance for public interest entities over the last 10 years. This report focuses on areas where the country authorities and in-country stakeholders could implement actions to further strengthen the accountancy profession and increase compliance with international standards. The Malaysian Institute of Accountants (MIA) is the main regulatory body for accountants and is a member of the International Federation of Accountants (IFAC). The MIA has the responsibility for setting auditing and ethical standards in Malaysia. The Malaysian Accounting Standards Board (MASB), established under the Financial Reporting Act (1997), is the accounting standards-setting body in Malaysia. The Audit Oversight Board (AOB), incorporated into the Securities Commission Act (1993) by virtue of the Securities Commission Amendment Act (2010), is responsible for ensuring and enforcing compliance with auditing and ethical standards by public interest entity auditors and can require MIA to amend those standards. MIA is responsible for ensuring and enforcing compliance with the auditing and ethical standards by non-public interest entity auditors. The institutional framework of corporate financial reporting by public interest entities in Malaysia is well developed with multiple layers of systematic control, review and enforcement. There is also high-level collaboration and co-ordination between the accounting profession and the regulatory enforcement agencies . There is a memorandum of understanding between the Securities Commission and Bank Negara Malaysia, and there are regular bilateral meetings among regulators. This results in strong regulatory oversight of public interest entities while minimizing the potential for overlap and duplication by regulators. However, there are a number of key areas for improvement that require further attention, particularly in relation to the regulation and oversight of private entities and the auditors of those entities.

Details

  • Document Date

    2012/02/16

  • Report Number

    66929

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Malaysia,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2012/02/21

  • Disclosure Status

    Disclosed

  • Doc Name

    Malaysia - Report on the Observance of Standards and Codes (ROSC) : accounting and auditing

  • Keywords

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Citation

Malaysia - Report on the Observance of Standards and Codes (ROSC) : accounting and auditing (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/703091468088742465/Malaysia-Report-on-the-Observance-of-Standards-and-Codes-ROSC-accounting-and-auditing