Audit Regulation: Mia By-Laws

What are MIA By-Laws & Why Do They Matter?

Part A – Fundamental Principles (Sections 111–115)

Ethical conduct that members should exhibit in their interactions with clients.

1. Integrity (111)
2. Objectivity (112)
3. Professional Competence & Due Care (113)
4. Confidentiality (114)
5. Professional Behaviour (115)

Still Confuse?

1. Difference between Integrity and Objectivity
2. Distinguish between the principles of Integrity and Confidentiality

Professional Independence, Threats & Safeguards

What is Independence?

Types of Ethical Threats

1. Self-interest threat
2. Self-review threat
3. Advocacy threat
4. Familiarity threat
5. Intimidation threat

Safeguards

Type of Safeguards

Scenarios in which professional accountants should avoid any association

Part B – Selected MIA By-Laws for Public Practice

Section 310 – Conflicts of Interest

Section 320 – Professional Appointment

Section 330 – Fees & Other Types of Remuneration

B.120 – Methods of Practice (Advertising & Promotion)

Quick Summary

1. Five fundamental principles: (I-O-PCDC-C-PB)

Integrity

Objectivity

Professional Competence & Due Care

Confidentiality

Professional Behaviour.

2. Independence has two sides: (I-I)

Independence of mind 

Independence in appearance.

3. Five threats: (S-S-A-F-I)

Self-interest

Self-review

Advocacy

Familiarity

Intimidation.

4. Safeguards: (F-E-C)

Firm policies

Engagement actions (e.g. rotation)

Client’s own systems.

Part B focus areas:

310: Conflicts of interest (especially loans/guarantees, RM25,000 limit).

320: Professional appointment (communication with existing auditor).

330: Fees (proper basis, no contingency or commission).

B.120: Methods of practice (limited, dignified advertising).