How to Become An Approved Auditor ?

[ About Audit ]
An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of account are properly maintained by the concern as required by Malaysia law ( e.g. Company Act 2016 ).
Areas which are commonly audited include : financial information relating to a legal person, secretarial & compliance audit, internal controls, quality management, project management, water management and energy conservation.
As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk management, control and the governance process over the subject matter.
Due to strong incentives ( e.g. taxation, miselling and other forms of fraud ) to misstate financial information, auditing has become a legal requirement for many entities who have the power to exploit financial information for personal gain.
Financial audits are performed to ascertain the validity and reliability of information, as well as to provide an assessment of a system’s internal control. As a result of this, an auditor can express an opinion based on the audit evidence obtained.
[ Company Statutory Audit ]
Based on Companies Act 2016, it’s mandatory for every private limited company ( sendirian berhad ) to appoint an approved auditor for their companies regardless of company sizes, active or dormant. Every company in Malaysia must have their accounts audited by approved company auditors every year and submit their audited report to Companies Commission Malaysia (CCM).
[ How to become an approved auditor ? ]
According to Malaysian Institute of Accountants (MIA) , requirements to become an approved company auditors are as follows :
1. Applicant has passed the Final Examination of Part 1 of the First Schedule of the Accountants Act, 1967 OR admitted as a member of any of the recognized bodies in Part 2 of the First Schedule of the Accountants Act, 1967.
2. Applicant must be a member of the MIA and registered as a “Chartered Accountant”.
3.Applicant must hold valid practicing certificate issued by MIA. Please take note that the practicing certificate only valid for 6 months. Therefore, it is advisable to submit the audit licence application immediately after you obtain the practicing certificate.
4. Applicant must has 5 years of accumulative working experience, on full time basis, which has :
(i) at least three 3 years experience must be in audit practice;
(ii) 1 year practice in audit supervisory role. Audit supervisory means overseeing, managing and controlling audits consulting engagements including preparing financial reports and audit planning.5. First time applicant is required to attend the Public Practice Programme organized by MIA.
6. Applicant who possess the relevant auditing experience but are no longer in an audit practice, is still eligible to apply at the point of submission, if he/she had:
(i) left the Audit Practice within 3 years from the date of application; or
(ii) left the Audit Practice for more than 3 years but has at least 1 year recent working experiences in audit practice within the Malaysian environment prior to the submission for new application.7. Applicant having experiences in audit firm in other countries can also be considered provided he/she has at least 1 year recent working experiences in audit practice within the Malaysian environment, on a full time basis.
[ Procedures to Become an Approved Company Auditors ]
1. Applicants must follow the procedures as follow :
(i) Register as an individual in Business Licensing Electronic Support System (BLESS) through
(ii) Proceed to submit the application for audit approval through BLESS.
(iii)Submit Certified True Copy of all the relevant certificates as well as valid Practising Certificate.
(iv)Attach a sponsor letter from an accountant holding a valid audit license which is still in force.
(v) Pay RM 100 or using the e-payment module upon pass the interview session.2. Processing of auditors approval takes about 1 to 2 months. The Accountant General’s Department of Malaysia will inform applicants 2 weeks prior to the interview.
3. The approval letter will be issued to successful applicant within 14 working days from the date of the interview.
[ Skills Required to Become an Auditor ]
1. Attention to detail: An auditor need to be very sharp to spot the smallest error during the analysis of finance statements in order to ensure that the information are genuine and accurate.
2. Work in a team: Great communication skills are required in order to work harmoniously in a team and able to produce an effective result in a shorter time.
3. Determination in problem solving: Work of auditors usually consist of long hour analysis and thus it’s crucial to be motivated throughout the whole process.
[ Responsibilities of an Auditor ]
1. Obtain assurance about whether the financial statements of the company as a whole are free from material misstatement and to issue an auditors’ report which include professional opinion.
2. Identify and assess the risks of material misstatement of financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks.
3. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
4. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by directors.
5. If there are any material uncertainty exists, auditors are required to draw attention in auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify auditors’ opinion.
6. Evaluate the overall presentation, structure and content of the financial statements of the Company, including the disclosures and whether the financial statements represent the underlying transactions or events in a manner that achieves fair presentation.
7. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings.