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manuals. For firms like these, an additional planning visit will be arranged before the on-site
review to review the relevant manuals.
Compliance review - general controls
The reviewer may carry out a compliance review of the general controls of the member firm
and evaluate the degree of reliance to be placed upon them. The degree of reliance will,
ultimately, affect the sample size of audit engagements to be reviewed.
The following five (5) key controls are included in the Questionnaire:
Maintenance of Professional Skill and Standards
Staff Supervision and Development
Office Administration 168 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] APPENDICES
Member firms are expected to address each of the five (5) key control areas.
In each key control area of the Questionnaire, there are supplementary questions and matters
to consider. These are intended to indicate the kind of controls that are expected to be installed
and operated within each firm.
All questions are not necessarily relevant to particular types of member firms because of their
size and culture etc. However, member firms should still assess their internal control systems
to ascertain whether they address the objectives under the five key control areas.
Selection of audit engagements to be reviewed
The number of audit engagements to be reviewed depends upon:
a. the number of partners involved in audit engagements in the firms selected ; and b. the degree of reliance placed, if any, on general quality controls. For the number of audit engagements to be actually reviewed, please refer to the flowchart in
Appendix B as provided herein as a general guideline.
From the clients list as provided and certified as complete, the reviewer, in consultation with
the member firm, will proceed to select an actual sample of audit engagements for review. The
engagements reviewed should be a balanced sample from a variety of different sized clients
covering various industries so that they reflect the “overall performance” of the said firm under
review. Accordingly, if the reviewer considers that the actual sample is not representative of
the member firm’s audit client portfolio, he may proceed to choose an additional number of
files in excess of those as depicted in the enclosed flowchart in Appendix B.
The population from which files are selected for review will be audits completed at least six (6)
months preceding the date of the notification letter but not earlier than eighteen (18) months
prior to the selection date.
Review of files
The reviewer may adopt a compliance approach or substantive approach or a combination
selection of both in the review of audit engagement files.
Compliance approach - audit engagements
The compliance approach is to assess whether proper control procedures have been established
by the member firm to ensure that audits are performed in accord...
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This document was uploaded on 09/23/2013.
- Fall '13