Enhancing the responsibilities of auditors in Malaysia

Auditors are pivotal in every corporate entity. This is demonstrated by relevant provisions in the Companies Act 1965. Nonetheless, auditors must discharge their duties and functions effectively in order that the requirement of auditors in every corporate entity is legally justified. Essentially, the scope of these duties and functions must be in tandem with the current corporate landscape. Hence, it is important to assess the corporate responsibilities of auditors in the context of the Malaysian legal framework. Additionally, the responsibilities have to be examined since provisions have been introduced by the Companies Amendment Act 2007 to bring about more meaningful responsibilities of auditors. The study will then explore whether the legal direction taken is appropriate. The study will also investigate whether the provisions are comprehensive. The study concludes that the provisions are still far from satisfactory, albeit it is the beginning of ensuring enhanced responsibilities of the auditors. Further legal reforms on the drawing board must be introduced to enhance the responsibilities of the auditors in the interests of stockholders and stakeholders.