The essence and key messages of the 2015 Audit Oversight Board annual report

1. The
Audit Oversight Board
2015 annual report
A snapshot
28 June 2016

2. The AOB strategy map

3. Promote high quality auditing practices
The landscape
The upward trend in the number
of registered individual auditors
and reduction in number of
partnerships with less than two
partners are indicative of the audit
firms’ improved commitments to
capacity building and succession
planning. This also reinforces the
audit firms’ ability to take on
challenges when auditing
increasingly complex clients.

4. Promote high quality auditing practices
The landscape

5. Promote high quality auditing practices
The landscape

6. Promote high quality auditing practices
The landscape

7. Promote high quality auditing practices
The landscape

8. Promote high quality auditing practices
Audit Quality

9. Promote high quality auditing practices
Audit Quality
Leadership accountability
and consistency of
performance
Accountability of engagement
partners and EQCRs
Rigour in client acceptance
Independence and ethics
Consultation
Effectiveness of monitoring of
audit quality

10. Promote high quality auditing practices
Audit Quality
How strong is the tone from the
top?
Independence and ethics
Rigour in client acceptance
Effectiveness of training
Engagement performance
issues
Structure and compliance of
monitoring of audit quality

11. Promote high quality auditing practices
Audit Quality
Both Major firms and other audit firms have issues
in the effectiveness of the EQCR process
- industry knowledge
- sufficient time to review
- commitment

12. Promote high quality auditing practices
Audit Quality

13. Promote high quality auditing practices
Audit Quality

14. Promote high quality auditing practices
Audit Quality

15. • Reprimand and a fine of RM 50,000 on Lee Kok
Wai of Crowe Howarth
• Revocation of registration of Wong Weng Foo & Co
• Revocation of registration of Wong Weng Foo as
the managing partner of Wong Weng Foo & Co
• Revocation of registration of Abdul Halim Husin as
a partner of Wong Weng Foo & Co
• All the above enforcement actions are under
various stages of appeal
Promote high quality auditing practices
Enforcement

16. Influence Financial Reporting Ecosystem and Leverage on
Stakeholders’ Support

17. Influence Financial Reporting Ecosystem and Leverage on
Stakeholders’ Support

18. Assessment of Performance and Effectiveness

19. Assessment of Performance and Effectiveness

20. Assessment of Performance and Effectiveness

21. Assessment of Performance and Effectiveness

22. Support Adoption and Implementation of Standards

23. Support Adoption and Implementation of Standards

24. Support Adoption and Implementation of Standards

25. Support Adoption and Implementation of Standards

26. The Audit Oversight Board, Securities Commission