PETALING JAYA: The Securities Commission Malaysia (SC)’s Audit Oversight Board (AOB) has issued
a circular to auditors and audit committees regarding the importance of ensuring high quality of audit on financial reports of Public Interest Entities (PIEs) in light of the challenges posed by the Covid-19 pandemic.
In its circular, the AOB said they are closely monitoring the impact of the pandemic on the quality of financial reports of PIEs.
To ease the challenges faced by the firms, the AOB have announced that the audit regulator will only commence inspection of audit firms of PIEs after May 15, 2020. Firms that are required to submit any remedial action plan to the AOB will be given an extended deadline till June 30, 2020.
The AOB has also extended payment of registration fees to July 1, while the implementation of the Audit Transparency Report of large registered audit firms of the AOB shall be deferred to 2021.
SC chairman Datuk Syed Zaid Albar said the SC is cognisant of the difficulties faced by auditors who may need to conduct remote auditing and have limited access to clients’ books and records.
“Nevertheless, the SC’s AOB is of the view that the current situation should not undermine the delivery of high quality audits. Those charged with governance, in particular audit committees, should be extra vigilant and cautious to ensure reliable, audited financial information is provided to investors and shareholders for informed decision making,” he added.
