Professional auditing practice
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To be an auditor in Malaysia, one must: 1. Be a member of the Malaysian Institute of Accountants for at least 1 year and be a Chartered Accountant 2. Have at least 5 years of audit experience, including 3 years of audit work and 1 year in an audit supervisory role An auditor can be appointed by company directors before the first annual general meeting. After that, auditors are appointed at each annual general meeting until the next one. Directors can also fill casual vacancies. Auditors can be removed by shareholder resolution with special notice, but otherwise they serve until the next AGM. If an auditor resigns, directors must call a general meeting to appoint a replacement.
Professional auditing practice
- 3. DEFINE THE QUALIFICATIONS NEEDED TO BE AN AUDITOR 1.Is a member of the Malaysian Institute of Accountants(MIA) under the Chartered Account category.In addition,the applicant has to be a member of the MIA for at least one (1) year. 2.Possess sufficient working experience in audit practice in a public accounting firm: (a)The candidate must have at least 5 years of working experience prior to application.The 5 years accumulative working experience can be obtained prior to and/or after becoming a Chartered Accountant of the MIA. I. At least 3 years must be in audit work. II. At least 1 years out of the above 3 years shall be in an audit supervisory role.The audit supervisory role is defined as being reponsible for audit management including consultation with audit partners and has experience in giving opinions for financial statement and be directly involved in audit planning. .
- 4. (b)Candidates who has left audit practice,but still within a 3 year period prior to the application to be approved company auditors, are still eligible to apply. (c) For candidates who have left audits practice for more than 3 year,they must work for at least 1 year in audit in the Malaysian environment. 4.Candidates are required to attend the “Public Practice Programme” organised by the MIA.
- 5. DESCRIBE THE APPOINTMENT,REMOVAL AND RESIGNATION OF AUDITOR ACCORDING TO COMPANY’S ACT 1965. 172. (1) At any time before the first annual general meeting of a company, the directors of the company may appoint, or (if the directors do not make an appointment) the company at a general meeting may appoint, a person to be the auditor of the company, and any auditor so appointed shall, subject to this section, hold office until the conclusion of the first annual general meeting. (2) A company shall at each annual general meeting of the company appoint a person to be the auditor of the company, and any auditors so appointed shall, subject to this section, hold office until the conclusion of the next annual general meeting of the company. (3) Subject to subsections (7) and (8), the directors of a company may appoint an approved company auditor to fill any casual vacancy in the office of auditor of the company, but while such a vacancy continues the surviving or continuing auditor, if any, may act.
- 6. (4) An auditor of a company may be removed from office by resolution of the company at a general meeting of which special notice has been given, but not otherwise (8) A company shall, forthwith after the removal of an auditor from office in pursuance of subsection (4), give notice in writing of the removal to the Registrar and, if the company does not appoint another auditor under subsection (7), the Registrar shall appoint an auditor. (15) If an auditor gives notice in writing to the directors of the company that he desires to resign, the directors shall call a general meeting of the company as soon as is practicable for the purpose of appointing an auditor in place of the auditor who desires to resign and on the appointment of another auditor the resignation shall take effect.
- 7. 2.2.3 Discuss the auditor’s duty,rights and responsibility according to company’Act 1965.
- 8. Powers and duties of auditors as to reports on accounts 174. (1) Every auditor of a company shall report to the members on the accounts required to be laid before the company in general meeting and on the company’s accounting and other records relating to those accounts and if it is a holding company for which consolidated Accounts are prepared shall also report to the members on the consolidated accounts. (4) An auditor of a company has a right of access at all reasonable times to the accounting and other records (including registers) of the company, and is entitled to require from any officer of the company and any auditor of a related company such information and explanations as he desires for the purposes of audit.
- 9. (5) An auditor of a holding company for which consolidated accounts are required has a right of access at all reasonable times to the accounting and other records (including registers) of any subsidiary, if necessary, and is entitled to require from any officer or auditor of any subsidiary, at the expense of the holding company, such information and explanations in relation to the affairs of the subsidiary as he requires for the purpose of reporting on the consolidated accounts. (6) The auditor’s report shall be attached to or endorsed on the accounts or consolidated accounts and shall, if any member so requires, be read before the company in general meeting and shall be open to inspection by any member at any reasonable time