topic 1 statutory and professional.pptx

8/18/2019 TOPIC 1 Statutory and Professional.pptx

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AUD 610

TOPIC 1Statutory and Professional

Responsibilities

and MIA By!a" #on ProfessionalCondu$t and %t&i$s'


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P A R T 1

C o ( p a n i e s A $ t 1 ) 6 *

S e $ + , - ) - 1 . / a n d 1 . 0

P A R T /

M I A B y ! a " # P r o f e s s i o n a l C o n d u $ t a n d % t & i $ s '

TOPICS

TODISCUSS


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PART 1

Statutory and ProfessionalResponsibilities

Companies Act1965

Se$+ , and)

2uali3$ation

Se$+ 1./

Appoint(ent- Re(o4al

andResi5nation

Se$+ 1.

Duties andResponsibil

ities

Se$+ 1./#16'

Re(uneration


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Co(panies A$t 1)6*Se$+ , 2uali3$ation

Se$+ ,

Reuires a $o(pany to appoint an appro4ed $o(panyauditor

Must &a4e a professional a$$ountan$y uali3$ation "it&adeuate pra$ti$al trainin5 before be re$o5nised as MIA(e(ber #CA'

A partners&ip 3r( (ay be appointed as appro4ed$o(pany auditor in t&e 3r(7s na(e+ T&e 3r( (ust re5ister"it& CCM before bein5 appointed as auditor of a $o(pany

An audit 3r(s are 5enerally in t&e for(s of soleprop orpartners&ip

De3nition

2uali3ed person appro4ed by t&e

MO8 to a$t as auditor- is of 5ood$&ara$ter and $o(petent to

perfor( t&e duties of an auditorunder t&e Co(panies A$t


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# a ' 9 e i s n o t a n a p p r o 4 e d $ o ( p a n y a u d i t o r

#b' 9e is indebtedto $o(pany- its

&oldin5 orsubsidiaries$o(pany in an

a(ount e:$eedin5RM/-*00

#$' If &e is

an o;$er of t&e$o(pany

a partner- e(ployer ore(ployee of an o;$er oft&e $o(pany

a partner or e(ployeeof an e(ployee of an

o;$er of t&e $o(pany a s&are&older or &isspouse is a s&are&olderof a $orporation "&osee(ployee is an o;$er

$o(pany # d ' 9 e i s r e s p o n s i b l e f o r

o r i f & e i s t & e p a r t n e r - e ( p l o y e r o r e ( p l o y e e o f a p e r s o n r e s p o n s i b l e f o r

t & e


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S%C+ ) #2UA!I8ICATIO='#CO=T7'

Se$+ )#/'

If an o;$er &as resi5ned fro( a$o(pany- &e $an only be t&e auditorof t&e $o(pany after 1/ (ont&s of

&is resi5nation+ If less t&an 1/(ont&s- &e is not eli5ible to beappointed as an auditor of t&e

$o(pany+

S 1./ A i


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Se$+ 1./ Appoint(ent

#1'Po"er of dire$tors to appoint auditorbefore 1st 5eneral (eetin5- if not-

(e(bers are entitled to do it in 5eneral(eetin5+

#/' Co(pany s&all appoint auditor at ea$&A>M+ Ter( of o;$e starts fro( appoint(entand present A>M till- $on$lusion of ne:t A>M+Co(pany (ust at e4ery A>M appoint andreappoint auditor+

#?' Po"er to dire$tors to appoint to 3ll $asual4a$an$y #ter(ination of auditor pra$ti$e-

auditor $ease operation' e:$eption toresi5nation or re(o4al of auditor

#10' If a $o(pany does not appoint anauditor- CCM on t&e appli$ation in "ritin5 of

any (e(ber of t&e $o(pany "ill (a


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Se$+ 1./ Re(o4al

#' Re(o4al is to be done at 5eneral (eetin5 of"&i$&- spe$ial noti$e of ordinary resolution to

re(o4e auditor &as been issued

#*' On re$eipt of spe$ial noti$e by $o(pany T&ey (ust send a $opy of spe$ial noti$e topresent auditor and CCM-Auditor (ay "it&in . days of re$ei4in5 spe$ialnoti$e (a


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Se$+ 1./ Re(o4al #$ont7'

#.' Spe$ial resolution is needed to appoint ne"auditor- repla$e t&e re(o4e at t&e sa(e A>M If to appoint at t&e ad@ourned (eetin5- "e$an do so but t&rou5& ordinary resolution and

ad@ourned A>M need to be done not earlier t&an/0 days and- not later t&an ?0 days fro( A>Mdate of re(o4al auditor

#,' Co(pany s&all infor( in "ritin5 re5ardin5

re(o4al of auditor to t&e CCM+ If t&e $o(pany didnot appoint t&e auditor- CCM s&all do so+


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Se$+ 1./Resi5nation

#1' Auditor (ay resi5n If &e is not t&e soleauditor of $o(pany

At 5eneral (eetin5 of$o(pany

#1*' If an auditor desires toresi5n- &e s&all 5i4e noti$e

of resi5nation to dire$tors oft&e $o(pany+ T&e dire$tors-s&all $all for %>M for t&epurpose of appointin5 ne"auditor and t&e resi5nation

"ill only be ee$ti4e on t&ea oint(ent of ne" auditor


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Duties Se$+ 1. #1?' #$ont7'

#?' Also an auditor need to for( an opinionon t&e follo"in5s

• &et&er &e &as obtained all t&e infor(ationreuired

• &et&er proper a$$ountin5 and ot&erre$ords in$lude re5isters &a4e been properly


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Po"er or Ri5&ts of Auditors Se$+ 1. #)'

• To a$$ess at all ti(es boo


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Se$+ 1./ #16' Re(uneration

T&e fees and e:penses of an auditorof a $o(pany

• If auditor is appointed at 5eneral

(eetin5 t&e fees s&all be 3:ed byt&e $o(pany at 5eneral (eetin5

• If auditor is appointed by dire$torsor by CCM t&e auditor7sre(uneration t&en- s&all be 3:ed byt&e dire$tors or CCM respe$ti4ely


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PART /

MIA By!a" #on Professional Condu$t and%t&i$s'


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MIA By!a" #on Professional Condu$t and %t&i$s'


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MIA By!a" #on Professional Condu$t and %t&i$s' #$ont7'


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PART AAppli$able to

all(e(be

rs

A1

8unda(ental

Prin$iples

professionallyE+

In a$$eptin5 @ob- a (e(ber s&all al"aysa$t inte5rity- ob@e$ti4ity- i(partially andfree fro( any inFuen$e "&i$& (i5&t $ause$onFi$t "it& t&e reuire(ent#Independen$e'

S&ould $arry out &is "or< properly-$o(peten$e and in a$$ordan$e "it&

professional standards e:pe$ted on &i(#Due Care G Co(petent'

S&ould not underta


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A/

Inte5rityG

Ob@e$ti4ity

PART AAppli$able to

all(e(be

rs

Strai5&tfor"ard- &onest- sin$ere- fairdealin5 and trut&fulness by all

(e(bers

Prin$iple of ob@e$ti4ity fair- &onestand free fro( $onFi$t of interest

A (e(ber s&all be and appear to be

free of any interest "&i$& $auseproble( to &is ob@e$ti4ity

Re5ardless of ser4i$e and $apa$ity-all (e(bers s&all prote$t t&e inte5rity

and (aintain ob@e$ti4ity in t&eir @ud5e(ent #8or e:a(ple pressure-ot&er ser4i$es to be en5a5ed- et$'

=o (e(ber s&all (a


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PART AAppli$able to

all(e(be

rs

o Stri4e $ontinually to i(pro4e &isprofessional ser4i$es-


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PART AAppli$able to

all(e(be

rs

for &is personal ad4anta5e ort&ird party ad4anta5e+%:a(ple Me(bers dealin5 int&e s&ares of t&e $o(panyusin5 infor(ation obtained

durin5 &is en5a5e(ent

Con3dential infor(ation oft&e $lient s&all not bedis$losed e:$ept•

Consent to do so obtainedfro( $lient• T&ere is le5al ri5&t or duty todis$lose• Pro4isions of "ritten la"#non$o(plian$e- $ri(inal a$t'

#9o"e4er- please reade:planatory notes $arefully'

I(portant &ere Be$ause(e(ber (i5&t &a4e $onFi$t of

interest bet"een &is loyalty to&is e(ployer- $lient- profession

A*Con3dentia

lity


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PART AAppli$able to

all(e(be

rs

A,

A$tDis$reditabl

e to t&e

Profession

Unprofessional conduct include grosscarelessness, negligence, incapacity inperforming his duties and conduct of anaccountant, include:-

• Retention of client records after demand

is made• Mae false and misleading entries in the

!nancial statements• Assisting his client to e"ade ta#• Commit fraud and negligence•

Acting that can threaten his integrity,o$%ecti"ity and independence

• &eing declared $anrupt, etc


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PART B

Appli$able toall (e(bers inPubli$ Pra$ti$e#=8 A=D A8'

B1

ProfessionalIndependen$e

PRO8%SSIO=A! I=D%P%=D%=C% De3nition Attitude of(ind $&ara$teriHed by inte5rity and ob@e$ti4e approa$&to professional "or


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#CO=T7'

Under t&is By!a"- t&e $oun$il of MIA &as laid do"na5ain t&e uali3$ation as auditor of t&e $o(pany in

addition to t&e ot&er le5al pro4isions+ A person $annotbe$o(e an auditor of t&e $o(pany #a(on5 ot&er are'o If &e is not an appro4ed $o(pany auditoro If &e is indebted to t&e $lient for (ore t&an RM /-*00o %t$- as dis$ussed abo4e

A (e(ber $annot a$$ept appoint(ent as auditors if &eis also bein5 appointed for pro4idin5 =O=AUDIT ser4i$esor 4i$e4ersa- if t&e appoint(ent $an i(pair &isindependen$e

PART B


B1

ProfessionalIndependen$e


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PART B


B1

ProfessionalIndependen$e#CO=T7'

• T&reat to independen$eSelf interest t&reat Undue dependen$e on total fees- 3nan$ial interest-$on$ern about losin5 $lient !oan or 5uarantees >i4e or 5uaranteein5 loan to $lient

or a$$eptin5 or indebted to $lientPro4ision of ot&er ser4i$es ta:- a$$ountin5 ser4i$es-se$retarial ser4i$es- et$

• as "it&in pre$edin5 period of 1/ (ont&s bein5 an o;$eror e(ployee of $o(pany or a partner- e(ployer- e(ployee ofan o;$er of t&e $o(pany

• Blood relations&ip "it& $lient

• Re$eipt of &ospitality >ifts- fa4or or &ospitality t&at 5o

beyond nor(al $ourtesy s&ould not be 5i4en or re$ei4ed asit (ay inFuen$e a$tions or de$isions


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PART B


B1

ProfessionalIndependen$e#CO=T7'

•

!ITI>ATIO= #De3nition' Court a$tion ta


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PART B


B/

Met&od ofPra$ti$e

oT&is By!a" pro&ibits a (e(ber fro(usin5 a trade na(e or a 3$titious na(e topra$ti$eo Me(ber s&all pra$ti$e as a $&artered

a$$ountant or li$ensed a$$ountant In &is o"n na(eIn &is partner7s na(e In t&e na(e of e:istin5 3r(

o Any bran$& of t&e 3r( s&ould be under

t&e (ana5e(ent and $ontrol of a(e(ber of t&e Instituteo Me(ber $an only report on t&e 3nan$ialstate(ent "&i$& e:a(ined by &is sta ora (e(ber in publi$ pra$ti$e

o And (any (ore #refer to By!a"'

B ?


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PART B


B?

Ad4ertisin5-Publi$ity andSoli$itation

#APS'

• Ad4ertisin5 #De3nition' T&e $o((uni$ation to t&e

publi$ of fa$ts about a professional a$$ount "it& a4ie" of pro$urin5 professional business

• Publi$ity #De3nition' Co((uni$ation to t&e publi$of fa$ts about a professional a$$ountant

• Ad4ertisin5 and publi$ity use of 4arious (edia su$&as (a5aHines and radio to $o((uni$ate fa4ourableinfor(ation about t&e 5oods and ser4i$es of t&e 3r(

B ?


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PART B


B?

Ad4ertisin5-Publi$ity andSoli$itation

#APS'

#CO=T7'•APS in 5eneral is not per(itted under MIA By!a"-

&o"e4er- t&is does not in$lude t&e follo"in5s

Me(ber $an issue $ir$ulars to person "&o( &e&as already been establis&ed a professional$onne$tion

Me(ber is allo"ed to publis& t&e 3r( na(e andaddress for purposes su$& as ad4ertise(ent for

@ob 4a$an$ies or to announ$e $&an5e of address Ad4ertise for se(inars or $onferen$es for t&e

publi$s+ Publi$ation of audit report- announ$e

ad(ission or retire(ent fro( pra$ti$e of a partnerand (ay send 5reetin5 $ards $on3ned "it& t&e(essa5e of &is 5reetin5- &is na(e and address oft&e 3r(s

Me(ber $an print t&eir business $ard but ensuret&at t&e business $ard or 3r( stationery or na(e

plate foes not in$lude a $lai( t&at &e is a


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PART B


B*

!oan To and8ro( Clients

=o (e(ber in t&e publi$ pra$ti$e nor &is3r( s&all (a


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PART B


B6

8ees andCo((ission

• 8ees s&ould be fair reFe$tion on4alue of "or< perfor(ed for $lient$onsiderin5 S


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PART B


B6

8ees andCo((ission

• A (e(ber (ay $&ar5e $&aritablebodies- nonpro3t or5anisation lo"fees or pro4ide free ser4i$e pro4idedsu$& ser4i$e not bein5 used asindu$e(ent to se$ure professional

appoint(ents or en5a5e(ent for ot&er$orporations

• In deter(inin5 fees- (e(bers (ustalso ta


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T&e ser4i$e of an auditor "it& spe$ial s


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PART B


B,

C&an5es inProfessional

Appoint(ents

oProposed auditor DOK A (e(ber "&o is as


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PART B


B,


Appoint(ents

#CO=T7'o%:istin5 auditor DOK If per(ission 5ranted %:istin5 auditor s&ould

reply in "ritin5 "&et&er t&ere is any reason "&yt&e ne" auditor s&ould not a$$ept appoint(ent

If per(ission not 5ranted %:istin5 auditor s&ouldreport t&e fa$t to t&e proposed auditor

o Proposed auditor DOK If t&e proposed auditor unable to obtain

satisfa$tory reply fro( e:istin5 auditor "it&inreasonable ti(e- &e s&ould follo" up by A+RRe5ister

And if still no reply after a fe" atte(pt- furt&erletter need to be send to e:istin5 auditor statin5&e assu(e t&at t&ere is no professional reasons"&y &e s&ould not a$$ept appoint(entE

PART B


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#CO=T7'

o%:istin5 auditor DOK

T&e e:istin5 auditor (ay de$line reappoint(entand $ease to pro4ide audit ser4i$e to $lient if t&atparti$ular $lient &as not paid t&e audit fees for t"o$onse$uti4e years by notify t&e $lient and MIA

=o ot&er (e(ber #ne" auditor' $an a$$ept t&eappoint(ent unless t&e outstandin5 fees bein5paid to pre4ious auditor

PART B


B,


Appoint(ents

PART B


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PART B


B)

In$apa$ity orDeat& of a Sole

Pra$titioner

A (e(ber is a sole pra$titioner and s&allenter into an arran5e(ent "it& anot&er(e(ber to enable &is pra$ti$e to $ontinue

"it& (ini(u( disruption in t&e e4ent ofdeat& or in$apa$ity- in eit&er of t&e follo"in5"ays

By enterin5 into an a5ree(ent "it&anot&er (e(ber By satisfyin5 t&e Coun$il t&at ot&er

adeuate pro4ision &as been (ade

PART B


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%4ery (e(ber in publi$pra$ti$e s&all ensure t&at &is

3r( $arries and (aintains apoli$y of professionalinde(nity insuran$e

Mini(u( $o4era5e RM100-000

PART B


B10

ProfessionalInde(nityInsuran$e

PART B B 11


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• %4ery (e(ber in publi$ pra$ti$e s&all

%nsure t&at &is 3r( $o(plies "it& all rele4antprofessional standards for t&e purposes of assuran$e asto t&e uality of t&e publi$ pra$ti$e ser4i$es pro4ided

Sub@e$t to t&e Institute7s Pra$ti$e Re4ie" Pro5ra((eas establis&ed by t&e Coun$il "it& t&e ob@e$ti4es toensure t&at all (e(bers (aintain- obser4e and applyall rele4ant professional standards so as to ensuree4eryone in pra$ti$e are $o(petent- et&i$al ande:er$ise due professional $are in t&eir "or


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AR%AS O8 CO=TRO%RSL #T9% PRI=CIPA! COMP!AI=TS'

AR%AS O8 CO=TRO%RSL


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#CO=T7'

AR%AS O8 CO=TRO%RSL


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#CO=T7'


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CO

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!US

IO=


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T9% %=D

topic 1 statutory and professional.pptx

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