Can the internal audit function be outsourced to the firm/person performing the statutory audit for the listed issuer?
Pursuant to section
290.186A of the By-Laws (On Professional Ethics, Conduct And Practice) of the
Malaysian Institute of Accountants) (“Ethics By-Laws”), where a financial
statement audit client is a listed entity or public interest entity, the firm
or network of firm performing the financial statement audit should not accept
an engagement to provide internal audit services.
As such, the internal
audit function of a listed issuer should not be outsourced to the firm/person
performing the statutory audit for the listed issuer.