2-3 What is the role of the MIA in the accounting profession?

The MIA is empowered to set auditing standards and rules that all members must follow.

There are several roles in which MIA sets standards and issue guidelines.

1. Accounting guidelines

• The issue of accounting standards is the responsibility of the Malaysian

Accounting Standards Board (MASB) established under the Financial
Reporting Act 1997. The Institute participates actively in the MASB’s
standard setting process.

• MIA also educates its members on the application of the MASB standards.

• Effective 1 January 2005, the name of accounting standards (MASB) has

changed to Financial Reporting Standards.

2. Auditing Standards

• The Accounting and Auditing Committee (AAC) of MIA is responsible

for issuing pronouncements on auditing matters.

• The auditing standards issued by the MIA are called Malaysian Approved
Standards on Auditing (MASA).

• The functions of the AAC in respect of auditing standards are inter alia the
making of pronouncements on statements of auditing standards, issuing
Recommended Practice Guides (RPGs) and technical bulletins.

3. Internal Auditing Guidelines

• The Internal Audit Committee (IAC) issues guidelines on internal

auditing.

• Besides, the IAC’s functions include the promotion of wider use of

information technology in internal auditing, and encouraging research and
development in internal auditing.