MIA Launches Audit Manual for Audit Of SMES

In efforts to improve the overall quality of financial statements of small and medium-sized entities filed with the authorities, the Malaysian Institute of Accountants (MIA) launched an Audit Manual to provide guidance on applying International Standards on Auditing (ISAs) of Malaysia.

The manual, according to MIA President Nik Mohd Hasyudeen Yusoff will help especially small and medium audit practitioners to understand and promote consistent application of the auditing standards.

As SMEs aspire to move up the value chain and enhance their competitiveness, access to resources will be crucial for them. In this regard, Nik says that they will have to seriously look into ensuring high quality financial reporting which reflects the true value of these organisations.

“It was developed based on the Guide to Using International Standards on Auditing in the Audits of Small-and Medium-sized Entities issued by the International Federation of Accountants (IFAC) Small and Medium Practices Committee and an Australian adaptation of the Guide by the Institute of Chartered Accountants in Australia”, Nik said.

Institute of Chartered Accountants in Australia Chief Executive Officer Graham Meyer said “For some time both MIA and the ICAA have recognised the need for audit practitioners, particularly those who deal with small-to-medium sized entities to have access to reference materials that encapsulate all the requirements of our respective national audit standards.”

“With the globalisation of economies, international accounting and auditing standards are becoming increasingly important. Through this collaboration we have been able to provide tailored guidance to our respective members while promoting the consistent application of auditing standards. This collaboration will help audit practitioners in Malaysia conduct high quality, cost-effective audits,” Mr Meyer said.

The Manual is a practical ‘how to’ guide, based on typical small to medium enterprise audits, and covers a number of key areas including:

• Planning and performing risk assessment procedures
• Understanding the client and responding to risks
• Audit documentation, evaluating audit evidence and reporting.

“We hope this manual will provide Malaysian small and medium practitioners with the knowledge and tools needed to effectively apply Malaysian auditing standards,” Nik said.

The Malaysian Audit Manual can be downloaded from the MIA website at http://www.mia.org.my/audit_manual.