Auditing Requirements in Malaysia

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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?

1% to 2% Signup and view all the answers

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

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

Which type of misstatement is unintentional?

Error Signup and view all the answers

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

Internal Auditor Signup and view all the answers

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

Independent from the company Signup and view all the answers

What does an audit provide reasonable assurance regarding?

Material misstatements in the financial statements Signup and view all the answers

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

Reasonable assurance Signup and view all the answers

What is the nature of a financial statement audit?

Highly standardized Signup and view all the answers

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

Making fair presentations in the financial statements Signup and view all the answers

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

Immaterial in nature but material in amount Signup and view all the answers

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

To verify compliance with statutory requirements and enhance credibility Signup and view all the answers

Who fixes the remuneration for a Forensic Auditor?

Government Signup and view all the answers

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

Helping shareholders obtain an independent opinion on the truth & fairness of the financial statements Signup and view all the answers

Who can appoint an external auditor according to the text?

Shareholders during AGM Signup and view all the answers

Which aspect does an audit aim to protect and safeguard?

Shareholders' interest Signup and view all the answers

What is the main purpose of a compliance audit?

To determine whether specific procedures/rules & regulations were complied Signup and view all the answers

Who typically performs forensic audits?

Approved Company Auditors Frequently Signup and view all the answers

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

Forensic audit Signup and view all the answers

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

Reliability of E-commerce Signup and view all the answers

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

Junior employee/audit assistant Signup and view all the answers

Which auditors perform compliance audits universally according to the text?

Internal Auditors Signup and view all the answers

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

Determining the qualification of persons for admission as members Signup and view all the answers

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

Malaysian Institute of Accountants (MIA) Signup and view all the answers

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

To ensure consistency in audit engagements globally Signup and view all the answers

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

MASAs are specific to Malaysia, while ISAs are global Signup and view all the answers

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