Events

Auditors perform various types of engagements with varying performance requirements and reporting responsibilities. While some engagements provide assurance, some do not – they are more of a review and/or reporting of factual findings. Despite the difference in the scope of work and reports issued, users of these reports place some form of reliance or reference when using these reports for making informed decisions or as required by certain regulators. With the proposed revisions to the audit exemption threshold looming, the need for statutory audits of financial statements amongst SMEs in Malaysia would likely reduce and would see a different scope of work and reporting required for non-statutory professional services from accounting/audit firms. Even though audits of financial statements will still be important in the corporate reporting landscape, other forms of engagements would likely gain more traction. As such, auditors should gain competency in other types of engagements such as compilations and agreed-upon procedures, while still having a comprehensive understanding and application know-how on reporting audit opinions; especially modified audit opinions.