This preview shows page 1. Sign up to view the full content.
Unformatted text preview: r
firm fail to be selected under the normal random selection process. e. The appointment to the Panel of Reviewers must be validated by a letter of
appointment signed by the Registrar. f. All appointments to the Panel of Reviewers shall automatically lapse on 31
December of each calendar year unless a letter of re-appointment issued under
the hand of the Registrar is sent to the panel member’s last known registered
address with the Institute one (1) month or earlier before the expiry date of 31
December of that calendar year. g. As stated in paragraph 10 of this Statement, a person cannot be a member of the
Practice Review Committee and the Panel of Reviewers at the same time and vice
-versa. h. Subject to sub-paragraph c. above, an advance notice of one (1) month should
be given to the Registrar prior to any resignation from the Panel of Reviewers.
Any notice period of less than one (1) month shall be accepted at the Registrar’s
own discretion. 159 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] APPENDICES
APPENDIX VII Conduct of practice reviews
15. Essentially, a practice review entails, among other things, a review of current audit
engagement files and related financial statements to ascertain that the member firm is
adhering to professional standards. Where a member firm is not following professional
standards in certain situations, suggestions and recommendations for improvement may be
made, and possibly followed by a further review, in keeping with the educational thrust of
practice review. The number of current audit engagement files to be reviewed depends on:
a. The degree of reliance, if any, to be placed on internal quality controls of the
member firm; and b. The size of the member firm being selected for review. A summary of the practice review procedures designed to meet the above objective is
contained in Appendix A herein.
Selection of member firms for review
16. The Registrar will randomly select member firms for review and will determine the order of
review. A member firm will not be selected until at least eighteen (18) months have
elapsed since the commencement of the member firm based on the Institute’s records.
17. Member firms may also be selected for review based on referrals from other regulatory
bodies in Malaysia or other committees of the Institute. The Practice Review Committee
shall, at its sole discretion, determine whether to undertake the review of any member firm
as mentioned above.
Amended 25 January 2007; With effect from 25 January 2007
18. Upon the selection of the member firm to undergo the practice review process, the member
firm will be duly notified within a week in writing via registered post by the Institute. The
Registrar will assign such reviewer at his discretion to the member firm that has been
selected for the practice review process.
19. The identity of the member firm shall be kept confidential from all parties inc...
View Full Document
- Fall '13