AUDITORS of small and medium-sized enterprises (SMEs) have a new tool at their disposal to help them understand and implement the International Standards on Auditing of Malaysia.
The Malaysian Institute of Accountants (MIA) has released an audit manual last month to assist smaller practitioners in applying the national auditing standards.
MIA president Nik Mohd Hasyudeen Yusoff said smaller firms often do not have the resources to regularly update their audit methodology to accommodate changes to standards and ensure compliance.
"With the guide, they can now play a more efficient role and at the same time compete with bigger players in the industry," he said.
"With the guide, they can now play a more efficient role and at the same time compete with bigger players in the industry," he said.
The manual was developed based on the International Federation of Accountants auditing guide for SMEs.
The manual, which is available on MIA's website, provides a detailed analysis of the Malaysian Auditing Standards with an illustrative case study to further explain how the requirements apply to the audit of an SME.
Nik Mohd Hasyudeen said the manual is a practical 'how to' guide, based on typical SME audits, and covers a number of key areas.
This includes planning and performing risk assessment procedures, understanding the client and responding to risks, audit documentation, evaluating audit evidence and reporting.
The manual, which is available on MIA's website, provides a detailed analysis of the Malaysian Auditing Standards with an illustrative case study to further explain how the requirements apply to the audit of an SME.
Nik Mohd Hasyudeen said the manual is a practical 'how to' guide, based on typical SME audits, and covers a number of key areas.
This includes planning and performing risk assessment procedures, understanding the client and responding to risks, audit documentation, evaluating audit evidence and reporting.
"We hope this manual will provide Malaysian small and medium practitioners with the knowledge and tools needed to effectively apply auditing standards and keeping them cost effective," he said.
Nik Mohd Hasyudeen said as SMEs move up the value chain and enhance their competitiveness, access to resources will be crucial, thus, the need to ensure high quality of financial reporting is important to reflect the true value of these organisations.
"In times like these, the issue of access to resources is crucial, and having a quality financial statement will help them especially when applying for loans," he said.
Nik Mohd Hasyudeen said as SMEs move up the value chain and enhance their competitiveness, access to resources will be crucial, thus, the need to ensure high quality of financial reporting is important to reflect the true value of these organisations.
"In times like these, the issue of access to resources is crucial, and having a quality financial statement will help them especially when applying for loans," he said.
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