When was the AOB set up?
The Audit Oversight Board ("AOB") is established under Part IIIA of the Securities Commission Act 1993 ("SCA") which came into force on 1 April 2010 to promote and develop an effective audit oversight framework and to promote confidence in the quality and reliability of audited financial statements in Malaysia.
The chronology of events of establishing AOB in Malaysia is as follow:
September to October 2007:
Budget 2008 Announcement by YAB PM – “Government will establish a Public Companies Accounting Oversight Board under the auspices of the SC”. Consultations held with industry groups and regulators.
January to April 2008:
Appropriate audit oversight framework for Malaysia Securities Commission (Amendment) Bill 2009 which contains the establishment and functions of the AOB passed in both Houses of Parliament.
Securities Commission (Amendment) Bill 2009 which contains the establishment and functions of the AOB passed in both Houses of Parliament.
1 April 2010
Part IIIA Securities Commission (Amendment) Act 2010 came into force. (Establish of Audit Oversight Board)
What is it supposed AOB to do?
Under Part IIIA of the SCA 1993, AOB is responsible to 5 major functions in order to assist the Security Committee (SC), which listed as below:
AOB has the power to direct the Malaysian Institute of Accountants (MIA) to establish, adopt, amend, modify, alter or by any combined ways, the auditing and ethical standards to be applied by registered auditors. It is also responsible to implement policies and programmes in ensuring an effective audit oversight system in Malaysia.
Auditors of public interest entities (PIEs) must register and recognized by AOB to ensure the auditing process is fit and proper. It is an offence for non-registration.
AOB has the power to impose appropriate...