Audit fee increase by 20%

Publication: New Straits Times
Date: 12 March 2011
Section: Business / Bizbytes
Page: 4
Headline: Audit Fees May Go Up By 20pc

Audit fees are expected to increase by 20 per cent with the adoption of the Clarified International Standards of Auditing (ISAs).

This increase was forecast by the United Kingdom's Auditing Practice Board, according to a joint statement issued by the Malaysian Institute of Accountants and the Association of Chartered Certified Accountants in conjunction with the Forum on Revised Auditing Standards: Implication to Business and Role of the External Auditors in Kuala Lumpur yesterday.

Speaking to reporters on the sidelines of the forum, KPMG Malaysia managing partner Mohamed Raslan Abdul Rahman said the increase in fees would be worth it as the Clarified ISAs would increase the chance of detecting fraud.

"Our audit fee is very low within this region, and I think it's quite justifiable that the audit fee has to accommodate with what the public wants, where the standard has increased the chance of detecting fraud," he said.

In Malaysia, the Clarified ISAs come into effect for audits of accounting periods commencing on or after January 2010.

Its objective is to develop standards which are understandable, clear and capable of consistent application. -Bernama