Bill for dealing with errant auditors

25/01/2008 The Star

KUALA LUMPUR: The bill to set up the Public Company Accounting Oversight Board (PCAOB) will be tabled in March, assuming that Parliament has not been dissolved in preparation for the general election.

Malaysian Institute of Certified Public Accountants (Micpa) president Datuk Nordin Baharuddin said the target was for the bill to be tabled then but if Parliament were dissolved, it would be tabled when it next convened.

“The task force set up by the Securities Commission (SC) has been working on it, they meet up every week,” he said, adding that the draft resolution would be sent to the Cabinet soon.

Nordin said errant auditors were currently referred to the Malaysian Institute of Accountants and Micpa, which would then investigate and discipline its members.

“This has been found not very effective so the new oversight board, when it comes into being, will have the power to mete out punishment,” he added.

Nordin was speaking to reporters at the sidelines of Micpa's 49th anniversary commemorative lecture and luncheon on Thursday.

SC chairman Datuk Zarinah Anwar gave the commemorative lecture, which touched on the need for the board of directors and senior management of companies to set the tone on integrity.

She also touched on market discipline where market participants must adhere to high standards of professionalism and, regulatory discipline in which enforcement of rules and regulations promote good corporate conduct and transparency.