Malaysian Institute of Accountants

In Malaysia, the Audit Oversight Board (AOB) and the Malaysian Institute of Accountants (MIA) are responsible for establishing and operating quality assurance (QA) mechanisms in the jurisdiction. Both systems are reported to be aligned with the requirements of SMO 1.

MIA maintains a Practice Review Programme to assess compliance of member firms with applicable professional standards and regulatory requirements in the performance of audit and assurance engagements. MIA continues to raise awareness of the Practice Review Programme among members and stakeholders and has established ongoing processes to support continuous monitoring and enhancement of audit quality.

MIA continues to strengthen the capacity of its QA framework through regular seminars, workshops, and technical initiatives focused on audit quality enhancement.

Since 2016, to support small and medium-sized practices (SMPs), MIA has collaborated with the Malaysian Institute of Certified Public Accountants (MICPA) to operate the Quality Assessment Programme (QAP), a structured professional development and review initiative aimed at enhancing audit quality among SMPs. Under this collaboration, MICPA carries out reviews of financial statements and compliance with International Standard on Quality Management 1 (ISQM 1), while MIA is responsible for sourcing participating firms and facilitating outreach.

To support implementation of the quality management standards, MIA launched and continues to maintain a dedicated Quality Management webpage, which includes implementation resources issued by the International Auditing and Assurance Standards Board, including first-time implementation guides, fact sheets, webinars, and recorded technical sessions. MIA has continued to organize targeted webinars and workshops, particularly for SMPs, to address implementation challenges relating to ISQM 1, ISQM 2, and related standards.

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 1 and continues to review and improve its QA framework as part of its commitment to continuous improvement.

Current Status: Sustain

In Malaysia, Initial Professional Development (IPD) and Continuing Professional Development (CPD) requirements for professional accountants are established independently by the two professional accountancy organizations in the jurisdiction: the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA).

MIA maintains an education and professional development framework that is overall aligned with the latest International Education Standards (IES). MIA accredits accounting degree programmes for the purpose of admission as Chartered Accountant (Malaysia) [C.A. (M)], provides ongoing feedback to universities and higher education institutions, conducts the MIA Qualifying Examination, implements the Chartered Accountant’s Relevant Experience (CARE) practical experience programme, and establishes mandatory CPD requirements for members.

The CARE programme is aligned with the requirements of IES 5 and adopts a mentor-mentee approach. Aspiring applicants are required to complete a minimum of 36 months of relevant practical experience under the supervision of a Chartered Accountant and demonstrate achievement of the required technical and professional competencies, which are verified by the assigned mentor.

MIA’s Education Board has developed the MIA Competency Framework (MIA CFM), which sets the baseline competencies for accountancy professionals and is benchmarked against the IES. The framework incorporates the three proficiency levels of Foundation, Intermediate, and Advanced and continues to guide MIA’s accreditation and practical experience requirements.

The Education Board continues to work closely with fellow regulators and relevant government bodies, including the Ministry of Higher Education and the Malaysian Qualifications Agency, to support the development of accounting programme standards and policy documents aligned with the MIA CFM and IES.

To support ongoing professional development, MIA offers a broad range of technical and non-technical CPD programmes through seminars, workshops, forums, conferences, e-learning modules, and hybrid delivery formats. MIA’s CPD framework is aligned with IES 7, requiring members to complete 120 hours of CPD over a rolling three-year period, including a minimum of 20 hours annually. (mia.org.my)

MIA continues to expand CPD offerings, including programmes focused on emerging areas such as sustainability reporting, audit quality, ethics, and technology, and maintains well-established ongoing processes to fulfill its obligations under SMO 2.

Current Status: Sustain

Under Part IIIA of the Securities Commission Malaysia Act 1993, the Audit Oversight Board (AOB) is given legislative authority to establish or adopt auditing standards applicable to auditors of Public Interest Entities and schedule funds. This responsibility is exercised through the Malaysian Institute of Accountants (MIA).

MIA’s Auditing and Assurance Standards Board (AASB) adopts the pronouncements issued by the International Auditing and Assurance Standards Board (IAASB), without modification, as the Malaysian Approved Standards on Quality Management, Auditing, Review, Other Assurance and Related Services.

MIA has established an ongoing process to ensure the continuous adoption and implementation of the latest IAASB pronouncements. The Institute regularly reviews consultation documents and exposure drafts issued by the IAASB, submits comment letters, and supports the implementation of International Standards on Auditing (ISA) and other IAASB standards among its members.

To support implementation, MIA continues to organize targeted workshops, webinars, town hall sessions, and technical briefings on audit quality, quality management standards, sustainability assurance, and newly issued and revised standards. The Institute also provides technical assistance by responding to member enquiries and issuing implementation guidance.

MIA continues to collaborate with the Malaysian Institute of Certified Public Accountants (MICPA) in developing manuals, illustrative working papers, and practical guidance materials, particularly for small and medium-sized practices (SMPs).

In addition, MIA issues Audit and Assurance Practice Guides (AAPGs) to support quality and promote consistency in the application of ISA and other IAASB pronouncements by professional accountants. (mia.org.my)

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 3 and continues to support continuous improvement in the adoption and implementation of international auditing and assurance standards.

Current Status: Sustain

In Malaysia, ethical requirements for professional accountants are established by the two professional accountancy organizations: the Malaysian Institute of Accountants (MIA), within the broader regulatory framework that includes oversight by the Audit Oversight Board (AOB) for auditors of Public Interest Entities and schedule funds, and the Malaysian Institute of Certified Public Accountants (MICPA).

MIA has established ongoing processes to fulfill the requirements of Statement of Membership Obligation 4 (SMO 4). MIA’s Ethics Standards Board (ESB) issues and maintains the MIA By-Laws (On Professional Ethics, Conduct and Practice), which are substantially based on and continuously updated to reflect the latest International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

MIA maintains an ongoing process to review and comment on exposure drafts and consultation documents issued by the IESBA and to engage with members and stakeholders on issues relating to the application of the Code.

To support implementation and awareness, MIA continues to organize webinars, town hall sessions, and technical programmes on the latest developments in the Code, including revisions relating to non-assurance services, fee-related provisions, tax planning, and sustainability-related ethics requirements. MIA also uses technical sessions and interactive ethics quizzes to promote active understanding and practical application of the Code among members.

In addition, MIA regularly provides updates on developments in the Code through its town halls, public practice programmes, technical circulars, and website communications.

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 4 and continues to support continuous improvement in ethics awareness, implementation, and compliance among its members.

Current Status: Sustain

The Department of the Accountant General of Malaysia is responsible for the accounting functions of both the federal and state governments in Malaysia and for the development and maintenance of the Malaysian Public Sector Accounting Standards (MPSAS) framework.

MPSAS are primarily drawn from the International Public Sector Accounting Standards (IPSAS) and are developed as accrual-basis national public sector accounting standards adapted for the Malaysian public sector environment. Malaysia continues to maintain and update the MPSAS framework, with the MPSAS Handbook 2023 currently in force.

The Malaysian Institute of Accountants (MIA) does not have direct responsibility for defining public sector financial reporting requirements. However, MIA continues to support public sector standard-setting and implementation through its representation on the Government Accounting Standards Advisory Committee.

MIA’s Public Sector Accounting Committee continues to promote IPSAS-aligned public sector reporting by sharing information with the Accountant General’s Department, reviewing exposure drafts and other consultative documents issued by the International Public Sector Accounting Standards Board (IPSASB), submitting comments, and sharing expertise aimed at strengthening the implementation of accrual-based public sector reporting in Malaysia.

MIA also educates its members on MPSAS and IPSAS developments by disseminating technical updates, offering relevant training programmes, and providing technical assistance and implementation support.

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 5 and continues to support continuous improvement in public sector financial reporting and accrual-based implementation in Malaysia.

Current Status: Sustain

The Malaysian Institute of Accountants (MIA) maintains an investigative and disciplinary (I&D) system for conducting investigations and disciplinary hearings relating to its members.

MIA continues to review and strengthen its rules, procedures, and operating framework to ensure ongoing compliance with the requirements of Statement of Membership Obligation 6 (SMO 6).

MIA has made significant progress in strengthening the efficiency and effectiveness of its I&D framework, including clearing all backlog cases since 2018 and finalizing standard operating procedures for the relevant units and departments involved in investigation, disciplinary, surveillance, and legal matters.

MIA has also strengthened its human resource capacity through the appointment of dedicated staff with appropriate competencies and experience in accounting, auditing, investigation, and legal matters. Since June 2016, MIA has maintained a dedicated Surveillance and Enforcement Division, headed by an Executive Director and supported by senior managers and managers responsible for investigation, disciplinary, surveillance, and legal matters.

MIA continues to operate an active and transparent I&D system. In 2023, MIA handled 74 cases under its investigation and disciplinary process and publicly reported the outcomes of these cases. (mia.org.my)

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 6 and continues to review and improve its I&D framework as part of its commitment to continuous improvement.

While MIA’s own I&D framework is aligned with the requirements of SMO 6, the Institute should continue to advocate with the Audit Oversight Board, the Malaysian Institute of Certified Public Accountants, and other relevant regulators for broader jurisdiction-level alignment of all I&D systems with SMO 6 requirements, including stronger coordination mechanisms, transparency of sanctions, and alignment of appeals and referral processes.

Current Status: Sustain

Under the Financial Reporting Act 1997, the Malaysian Accounting Standards Board (MASB) was established as an independent authority to develop and issue accounting standards for the preparation of financial statements in Malaysia.

Accounting standards for entities other than private entities are the Malaysian Financial Reporting Standards (MFRS), while private entities are required to apply the Malaysian Private Entities Reporting Standard (MPERS). The MFRS Framework is maintained as word-for-word identical to IFRS Accounting Standards and is updated on an ongoing basis. Meanwhile, MPERS is based on the IFRS for SMEs Accounting Standard, with limited jurisdiction-specific modifications, including requirements related to real estate.

The Malaysian Institute of Accountants (MIA) is responsible for adoption and implementation support activities aimed at promoting the consistent application of MFRS and IFRS Accounting Standards in the jurisdiction.

MIA provides guidance on the implementation of MFRS, reviews exposure drafts and consultation documents issued by MASB, and provides technical comments and feedback as part of the national standard-setting process. MIA also participates in MASB working groups, task forces, and implementation committees that address technical reporting issues.

In addition, MIA educates its members on MFRS and IFRS developments by offering relevant training programmes, technical updates, webinars, and technical assistance, including responses to implementation queries raised by members.

MIA maintains well-established ongoing processes to fulfill its obligations under SMO 7 and continues to support continuous improvement in the adoption and implementation of IFRS Accounting Standards in Malaysia.

Current Status: Sustain