Standards and statements of accounting in the form of

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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 Objective 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...
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