Public accountants worldwide are statutorily subjected to practice reviews, which form a critical element in enhancing audit quality, which in turn, supports effective regulation of the accountancy profession and protection of public interest.
In Singapore this is legislated under the Accountants Act in the form of the Accounting and Corporate Regulatory Authority (ACRA) Practice Monitoring Program (PMP). ACRA states that the PMP is an important regulatory instrument in promoting audit quality. Audit quality is the cornerstone of market confidence in the reliability of the financial information upon which the market makes capital allocation decisions. Singapore has been publishing their public report on a yearly basis since 2007.
In Malaysia, the Malaysian Institute of Accountants (MIA) Practice Review Committee is empowered by the MIA to carry out surveillance activities on audit firms (AFs) registered with the Institute to ensure that audit practitioners adhere to International Standards of Auditing (ISAs), professional standards, legal and regulatory requirements when they perform their audit work.
In this guide, we share five ways audit firms can help improve audit reviews to improve audit quality and ensure they are meeting regulatory requirements.