ACRA exploring use of audit quality indicators in Singapore

TO enhance the quality of auditing and financial reporting, the Accounting and Corporate Regulatory Authority (ACRA) has been exploring the potential of having an Audit Quality Indicators (AQIs) framework in Singapore.

"We are currently actively engaging audit firms and company directors on this," said ACRA chief executive Kenneth Yap on the use of AQIs, which was discussed at the Asean Audit Regulators Group's 5th Annual Meeting held in Kuala Lumpur on Monday and Tuesday.

Said Mr Yap of the discussion: "There was general agreement that the AQIs could be a useful tool for audit committees to start a meaningful conversation with audit firms on the quality of their audits."

The meeting also touched on challenges and opportunities arising from the implementation of the expanded auditor's report, with its new requirements to disclose key audit matters. This will be implemented globally for audits of financial statements for periods ending on or after Dec 15, 2016.

Hosted by the Audit Oversight Board, Securities Commission Malaysia, the meeting was attended by over 80 regulators and audit firm representatives from six Asean countries and Hong Kong.