Bank Negara Malaysia (the Bank) places reliance on quality audit services to complement its conduct of supervision of financial institutions so as to foster safety and soundness. The Bank, therefore, maintains a deep interest in the quality with which an external auditor performs the audit of a financial institution. The assurance of a properly conducted audit serves to provide an independent view of the financial statement’s reliability, which becomes more important in light of the increasing scope of management’s judgment permitted under the financial reporting standards adopted in Malaysia.
This policy document outlines the qualifications of an external auditor to be appointed by a financial institution and sets out the Bank’s requirements regarding the terms of an audit engagement, application procedures and reporting obligations to be observed by a financial institution.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
