MIA BY LAWS ON PROFESSIONAL ETHICS, CONDUCT AND PRACTICE
Temporary Personal Assignments (section 525)
safeguards to address threats
not include loaned personnel as an audit team member might address familiarity or advocacy threat
not give loaned personnel audit responsibility for any function or activity that the personnel performed during loaned personnel assignment might address a self-review threat
conduct additional review of work performed by loan personnel
circumstances to loan personnel to audit client
such assistance provided only for short period of time
personnel are not involved in providing non-assurance services that would not be permitted
personnel do not assume management responsibilities and audit client is responsible for directing and supervising activities of the personnel
Long Association of Personnel with Audit Client (section 540)
examples that might be safeguards
have appropriate reviewer who was not audit team member to review the work of individual
change role of individual on audit team or nature and extent of tasks the individual performs
perform regular independent internal or external quality reviews of engagement
Accounting and Bookkeeping Services (subsection 601)
apply accounting standards or policies and financial statement disclosure requirements
assess appropriateness of financial and accounting control and method use in determine the stated amount of assets and liabilities
propose adjusting journal entries
Tax Services (subsection 604)
what to consider
tax expertise of client's employees
the system by which tax authorities assess and administer
characteristics of engagement
complexity of relevant tax regime and degree of judgment necessary in applying it
Internal Audit Services (subsection 605)
example
what to consider
direct and taking responsibility for actions of entity's internal audit employeess
setting internal audit policies or strategic direction of internal audit activities
decide which recommendations resulting from internal audit activities to implement
materiality of related financial statement amountsr
risk of misstatement of assertions related to those financial statement amounts
degree of reliance that audit team will place on work of internal audit service
when auditor should not provide service
relate to financial reporting systems that generate information material to accounting records or financial statements
amounts are material to financial statements
related to significant part of internal controls over financial reporting
Information Technology Services (subsection 606)
factor to consider in evaluate self-review threat
when should not provide IT systems service
nature of IT systems and extent to which they impact or interact with client's accounting records or financial statements
degree of reliance that will be placed on particular IT systems as part of the audit
nature of the service
form significant part of internal control over financial reporting
generate information that is significant to client's accounting records or financial statements
Method of practice (section 500)
must in the name or names of his or her partner or partners being chartered accountants or licensed accountants
must in the name of firm existing at the time of coming into operation of the Act or formed thereafter provided that partners in Malaysia are eligible to be registered as chartered accountants or licensed accountants
must be in his or her own name
Professional Indemnity Insurance
required to purchase policies from licensed insurance companies
maintain professional indemnity insurance policy with minimum coverage of RM250K upon commencement of public practice
carry and maintain professional indemnity insurance policy
Death or Incapacity of Sole Practitioner
cause difficulty and inconvenience to clients
protect both own and clients interest
Referrals
not provide any other professional services to referring member's client without inform referring member
not do anything that will impair position of referring practitioner in continuing work for the client
Practice Review
ensure all members in public practice comply with applicable professional standards, legal and regulatory requirements in performance of their work