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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
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.
- Fall '13