Auditing Requirements in Malaysia
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Questions and Answers

What is the role of an internal auditor?

  • Lead government audits in the legislative branch
  • Handle financial statements of both federal and state accounts
  • Ensure financial records accurately reflect the company's operations (correct)
  • Conduct forensic audits for detecting fraud

    • What is the primary purpose of a financial statement audit?

  • Standardizing procedures and policies
  • Evaluating operational activities for efficiency
  • Detecting and deterring fraud
  • Ensuring true and fair view of financial performance (correct)

    • Who appoints an internal auditor?

  • Company management (correct)
  • Legislative bodies
  • Government
  • Public accounting firms

    • What is the calculated amount of misstatement that is considered material in terms of sales revenues?

    <p>1% to 2%</p> Signup and view all the answers

    What is the primary purpose of an audit performed by an external auditor?

    <p>To reduce information risk by preventing misleading information in the financial statements</p> Signup and view all the answers

    Which type of misstatement is unintentional?

    <p>Error</p> Signup and view all the answers

    Which type of auditor is responsible for evaluating the effectiveness and efficiency of operational activities?

    <p>Internal Auditor</p> Signup and view all the answers

    What does a Chartered Accountant need to be in relation to the company they audit?

    <p>Independent from the company</p> Signup and view all the answers

    What does an audit provide reasonable assurance regarding?

    <p>Material misstatements in the financial statements</p> Signup and view all the answers

    What measure does an auditor obtain at the completion of an audit?

    <p>Reasonable assurance</p> Signup and view all the answers

    What is the nature of a financial statement audit?

    <p>Highly standardized</p> Signup and view all the answers

    Which statement best describes management's responsibility in relation to audits?

    <p>Making fair presentations in the financial statements</p> Signup and view all the answers

    What is the quality of a small illegal payment considered from the auditor's perspective?

    <p>Immaterial in nature but material in amount</p> Signup and view all the answers

    Why do companies in Malaysia need to undergo examinations by external auditors?

    <p>To verify compliance with statutory requirements and enhance credibility</p> Signup and view all the answers

    Who fixes the remuneration for a Forensic Auditor?

    <p>Government</p> Signup and view all the answers

    What is one of the benefits of an audit performed by an external auditor?

    <p>Helping shareholders obtain an independent opinion on the truth &amp; fairness of the financial statements</p> Signup and view all the answers

    Who can appoint an external auditor according to the text?

    <p>Shareholders during AGM</p> Signup and view all the answers

    Which aspect does an audit aim to protect and safeguard?

    <p>Shareholders' interest</p> Signup and view all the answers

    What is the main purpose of a compliance audit?

    <p>To determine whether specific procedures/rules &amp; regulations were complied</p> Signup and view all the answers

    Who typically performs forensic audits?

    <p>Approved Company Auditors Frequently</p> Signup and view all the answers

    Which type of audit is highly non-standardized and subjective?

    <p>Forensic audit</p> Signup and view all the answers

    What is an example of non-assurance services provided by certified public accountants?

    <p>Reliability of E-commerce</p> Signup and view all the answers

    In the structure of a chartered accounting firm, who typically falls under the category of 'Audit Senior'?

    <p>Junior employee/audit assistant</p> Signup and view all the answers

    Which auditors perform compliance audits universally according to the text?

    <p>Internal Auditors</p> Signup and view all the answers

    What is the main responsibility of the Malaysian Institute of Accountants (MIA)?

    <p>Determining the qualification of persons for admission as members</p> Signup and view all the answers

    Which authority issues the Malaysian Approved Standards on Auditing (MASAs)?

    <p>Malaysian Institute of Accountants (MIA)</p> Signup and view all the answers

    What is the primary objective of International Standards on Auditing (ISAs) and MASAs?

    <p>To ensure consistency in audit engagements globally</p> Signup and view all the answers

    What distinguishes Malaysian Approved Standards on Auditing (MASAs) from International Standards on Auditing (ISAs)?

    <p>MASAs are specific to Malaysia, while ISAs are global</p> Signup and view all the answers

    Who enforces compliance with Malaysian Approved Standards on Auditing (MASAs)?

    <p>Malaysian Institute of Accountants (MIA)</p> Signup and view all the answers

    What aspect do International Standards on Auditing (ISAs) and Malaysian Approved Standards on Auditing (MASAs) primarily cover?

    <p>Planning, execution, and reporting of audit engagements</p> Signup and view all the answers

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