KUALA LUMPUR: The Institute of Internal Auditors Malaysia (IIAM) hopes that the Securities Commission (SC) consider introducing a mechanism to help ensure consistency in auditing standards in Malaysia.
Its president, Philip Satish Rao, said currently 57 per cent of the 1,000 private listed companies in the country outsourced their internal auditing to parties that did not follow consistent standards.
“Not all those outsourced to are members of the institute. That is why we are worried as we do not know which standards they are applying and follow,” he told a media briefing after launching the 2014 National Conference on Internal Auditing here.
SC chairman, Datuk Ranjit Ajit Singh, officiated the conference, which attracted over 900 participants from private and public sector organisations nationwide and around the region, Rao said there was only one global standard the auditors should follow.
“If the outsourced company is not a member of IIAM, then we have no control over its audit quality,” he said. Earlier, Ajit said chief executives, boards of directors, audit and risk committees were increasing their expectations of the depth and quality of the work which needed to be performed by internal auditors. He said the gatekeeping role among internal auditors has become more critical and there was a need for them to heighten their performance as well as place increased focus on building a culture that would promote trust and confidence.
“The expectations on internal audit functions are shifting both internally and externally. There is no doubt that these changing expectations will pose various challenges to the internal audit profession,” he said. — Bernama