Of the member firm or the individual as the case may

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Unformatted text preview: previously been carried out as regards his practising on his own account, the Practice Review Committee shall NOT refer the complaint to the Investigation Committee UNLESS it is decided by a majority of three quarters of its members for the time being that, had the grounds of complaint or any such ground or any matter or matters complained of having been established, the relevant act or omission by such proprietor or partner would have amounted to unprofessional conduct within the meaning prescribed pursuant to Rule 2 of the Malaysian Institute of Accountants (Disciplinary) Rules 2002. 164 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] APPENDICES APPENDIX VII 39. The Practice Review Committee shall make recommendations to the member firm where: a. it considers that the member firm has satisfied all key control objectives which the Practice Review Committee determines are required to maintain professional standards but where further improvements could be made to internal quality control systems; and b it considers that the member firm has satisfied the major key control objectives but some weaknesses exist in others. The member firm is then expected to consider the recommendations for rectifying the weaknesses in controls and take all necessary action to ensure that all key control objectives are achieved. A follow up meeting will be conducted after twelve (12) months or if possible, even earlier to enquire about the progress of the implementation of the recommendations. 40. A follow up review will be required where the member firm has not satisfied the Practice Review Committee that all the key control objectives have been maintained and where the deficiencies are likely to materially affect the overall quality of an audit engagement. In such cases the Practice Review Committee will also make recommendations, which it expects the member firm to implement in order to ensure the maintenance of professional standards. The implementation of these recommendations will be examined during the follow up review. 41. It is clear that where a potential complaint relates to the first ever review of the individual concerned, whether in the member firm which is the subject of the report, or in any other member firm previously reviewed, no complaint can be lodged with the Investigation Committee unless the conditions set out in paragraph 41 below are fulfilled. This provision is in line with the educational thrust of practice review and the Council’s commitment to work with members to improve professional standards. 42. The Practice Review Committee will, even on a first review, make a complaint against a member where the weaknesses in the performance of audit engagements, or the disregard of professional standards amounts to, in its opinion, unprofessional conduct within the meaning prescribed pursuant to Rule 2 of the Malaysian Institute of Accountants (Disciplinary) (No. 2) Rules 2002....
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This document was uploaded on 09/23/2013.

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