March 9, 2000

By Joseph Lawrence,2014-05-17 01:13
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March 9, 2000

January 26, 2006

    Circular No: Stu/04/01/06




The Institute’s Examination Regulations and Syllabus state that:

(a) Questions involving knowledge of accounting and auditing should be answered in

    accordance with the requirements of approved accounting standards, approved auditing

    standards/guidelines and the relevant legislation;

(b) Questions involving knowledge of new approved accounting standards, approved

    auditing standards/guidelines and exposure drafts will not be set until at least 6 months

    have elapsed since the statement has became effective or was published.

The list of accounting standards, auditing standards/guidelines and other technical

    pronouncements, which are currently examinable in the Institute’s examination, are set out


I. Approved Accounting Standards

     The Financial Reporting Act 1997 established the Malaysian Accounting Standards

    Board (MASB) as the authority to develop and issue accounting standards for Malaysia.

    The Financial Reporting Act also requires that the accounting standards issued by

    MASB are to be applied to the financial statements of all business enterprises in

    Malaysia. However, in areas where MASB standards have not been issued, the extant

    accounting standards issued by the accounting bodies are deemed as applicable

    standards in the preparation of financial statements.

    For purposes of the MICPA examination, the following accounting pronouncements are

    examinable :

    (a) Approved accounting standards and other technical pronouncements issued by


    (b) International Accounting Standards (IAS) approved and issued by MICPA,

    which have not been replaced by MASB Standards;

    (c) Malaysian Accounting Standards (MAS) issued by MICPA, which have not been

    replaced by MASB standards;

    (d) Technical Bulletins (TB) issued by MICPA, which are to be regarded as the best

    current practice in the area in question.

To date, the MASB has issued 38 accounting standards. With effect from January 1,

    2005, MASB standards are renamed Financial Reporting Standards (FRS).

The requirements of MASB standards are consistent, in all material aspects, with that of

    the equivalent IAS / IFRS. Any differences between the requirements of a MASB

    standard and the equivalent IAS are shown in an appendix to the MASB standard.

The MASB has also issued one Technical Release and one Statement of Principles.

The list of approved accounting standards and other pronouncements examinable in the

    May 2006 examination are set out in Annexure I.

    II. Approved Auditing Standards

     Approved auditing standards comprise International Standards on Auditing (ISA) and

    International Standards on Quality Control (ISQC) approved and issued by MICPA.

    In addition, the following guidelines are issued by MICPA:

(i) International Auditing Practice Statements (IAPS), which provide practice

    assistance in specific areas of audit or in the application of the ISAs;

(ii) Auditing Technical Releases (ATR), which are to be regarded as the best current

    practice in the area in question.

     Each ISA contains an explanatory Foreword from the Council on the status and

    application of the ISA, and notes and exceptions where applicable. In particular, a set of

    audit report examples incorporating the requirements of the Companies Act 1965 is

    included as an appendix to ISA 700.

The list of approved auditing standards and other pronouncements examinable in the

    May 2006 examination are set out in Annexure II.


III. Exposure Drafts and Current Developments

    Students at the Advanced Stage Examination level are expected to have a detailed

    knowledge of exposure drafts of proposed accounting standards issued by the MASB

    and auditing standards by MICPA, where more than 6 months have elapsed since the

    last day of the month in which the exposure drafts were issued.

    Students at this level are also expected to be able to discuss and evaluate current issues

    on accounting, financial reporting and auditing arising in Malaysia and internationally.





    Annexure I






    Module A Module B

    MASB Approved Accounting Standards A1

     *FRS 1 First-time Adoption of Financial ? - - Reporting Standards

    *FRS 2 Share-Based Payment - - ?

    *FRS 3 Business Combinations - ? ?

*FRS 5 Non-current Asset Held for Sale and - ? ? Discontinued Operations

*FRS101 Presentation of Financial Statements ? ? ? (Revised)

*FRS102 Inventories ? ? ? (Revised)

     #FRS104 Depreciation Accounting ? ? ?

     #FRS107 Cash Flow Statements ? ? ?

*FRS108 Accounting Policies, Changes in Accounting ? ? ? (Revised) Estimates and Errors

     #FRS109 Research and Development Costs ? ? ?

*FRS110 Events after the Balance Sheet Date - ? ? (Revised)

     #FRS111 Construction Contracts - ? ?

     #FRS112 Income Taxes - ? ?

     #FRS114 Segment Reporting - ? ?


     PSE ASE

    Module A Module B

     *FRS116 Property, Plant & Equipment ? ? ? (Revised)

     #FRS117 Leases - ? ?

     #FRS118 Revenue ? ? ?

     #FRS119 Employee Benefits - ? ?

     #FRS120 Accounting for Government Grants and - ? ? Disclosure of Government Assistance

*FRS121 The Effect of Changes in Foreign Exchange Rates - ? ? (Revised)

     #FRS123 Borrowing Costs - ? ?

     #FRS124 Related Party Disclosures - ? ?

     #FRS125 Accounting for Investments ? ? ? #FRS126 Accounting and Reporting by - - ? Retirement Benefit Plans

    *FRS127 Consolidated and Separate Financial Statements - ? ? (Revised)

*FRS128 Investments in Associates - ? ? (Revised)

*FRS131 Interest in Joint Ventures - ? ? (Revised)

*FRS132 Financial Instruments : Disclosure and Presentation - ? ? (Revised)

*FRS133 Earnings Per Share - ? ? (Revised)

     #FRS134 Interim Financial Reporting - - ?

*FRS136 Impairment of Assets ? ? ? (Revised)

     #FRS137 Provisions, Contingent Liabilities and - ? ? Contingent Assets


     PSE ASE

    Module A Module B

     *FRS 138 Intangible Assets - - ?

     *FRS 140 Investment Property - - ?

     #FRS201 Property Development Activities - ? ?

     #FRS202 General Insurance Business - - ?

     #FRS203 Life Insurance Business - - ?

     #FRS204 Accounting for Aquaculture - - ?

     MASB Technical Releases A2

TR 1 Share Buybacks Accounting and Disclosure - ? ? (revised)

     MASB Statements of Principles A3

    SOP 1 Exempt Enterprises - ? ?

    Malaysian Accounting Standards B

    MAS 8 Accounting for Pre-cropping Costs - ? ?

    MICPA Technical Bulletins C

    TB 8 Accounting for Profit Guarantee and

    other Contingencies in Business Acquisitions - ? ?

* New / revised approved accounting standards issued by MASB effective for annual periods beginning

     on or after January 1, 2006.

    # Extant approved accounting standards issued by MASB prior to January 1, 2005.


    Annexure II





     PSE ASE

    International Standards on Auditing A

    ISA 100 Assurance Engagements ? ?

    ISA 120 Framework of International Standards on Auditing ? ? ISA 200 Objective and General Principles Governing

     an Audit of Financial Statements ? ? ISA 210 Terms of Audit Engagements ? ? ISA 220 Quality Control for Audits of Historical ? ? (Revised) Financial Information

ISA 230 Documentation ? ?

    ISA 240 The Auditor’s Responsibility to Consider Fraud ? ? (Revised) in an Audit of Financial Statements

     ISA 250 Consideration of Law and Regulations in

     an Audit of Financial Statements ? ? ISA 260 Communications of Audit Matters with Those ? ? Charged with Governance

ISA 300 Planning on Audit of Financial Statements ? ? Understanding the Entity and Its Environment and ISA 315 ? ? Assessing the Risks of Material Misstatement

ISA 320 Audit Materiality ? ? ISA 330 The Auditor’s Procedures in Response to Assessed Risks ? ?

    ISA 402 Audit Considerations Relating to Entities

     Using Service Organisations ? ?

    ISA 500 Audit Evidence ? ?

    ISA 501 Audit Evidence - Additional

     Considerations for Specific Items ? ?

     PSE ASE

     ISA 505 External Confirmations ? ? ISA 510 Initial Engagements - Opening Balances ? ? ISA 520 Analytical Procedures ? ? ISA 530 Audit Sampling and Other

    Selective Testing Procedures ? ?

ISA 540 Audit of Accounting Estimates ? ?

    ISA 550 Related Parties ? ? ISA 560 Subsequent Events ? ? ISA 570 Going Concern ? ?

    ISA 580 Management Representations ? ? ISA 600 Using the Work of Another Auditor ? ? ISA 610 Considering the Work of Internal Auditing ? ? ISA 620 Using the Work of an Expert ? ? ISA 700 The Auditor’s Report on Financial Statements ? ? ISA 710 Comparatives ? ?

     ISA 720 Other Information in Documents Containing

     Audited Financial Statements - ?

     ISA 800 The Auditor’s Report on Special

     Purpose Audit Engagements ? ? ISA 810 The Examination of Prospective Financial Information - ?

    ISA 910 Engagements to Review Financial Statements ??

     ISA 920 Engagements to Perform Agreed-Upon Procedures

     Regarding Financial Information ? ? ISA 930 Engagements to Compile Financial Information ? ?


     PSE ASE

    International Auditing Practice Statements B

     - IAPS 1000 Inter-bank Confirmation Procedures ? IAPS 1001 IT Environments Stand-Alone Personal Computers ? ? IAPS 1002 IT Environments On-Line Computer Systems ? ? IAPS 1003 IT Environments Database Systems ? ? IAPS 1004 The Relationship Between Bank Supervisors - and Banks’ External Auditors ? IAPS 1005 The Special Considerations in the Audit

     of Small Entities ?? IAPS 1006 The Audit of International Commercial Banks - ?

     IAPS 1008 Risk Assessments and Internal Control

     CIS Characteristics and Considerations ? ? IAPS 1009 Computer-Assisted Audit Techniques ? ? IAPS 1010 The Consideration of Environmental Matters - ? in the Audit of Financial Statements

     IAPS 1013 Electronic Commerce Effect on the Auditing ? ? of Financial Statements

     PSE ASE

    International Standards on Quality Control C

     ISQC 1 Quality Control for Firms that Perform Audits and

    - Reviews of Historical Financial Information, and Other ? Assurance and Related Services Engagements

    MICPA Auditing Technical Releases (ATR) D

ATR 2 Standard Letter of Request for Information - ? from Banks/Finance Companies for Audit Purposes

     Guidance for Auditors on the Review of Directors’ ATR 5 - ? Statement on Internal Control

/acctg & auditing stds.M06


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