ACAA 4222:

Advanced Audit Planning &

Investigation

CA. Ferdinand Mchacha B.Acc, MBA, FCCA, CA(M) CISA (Non-practicing)

 1. Applications and evaluations of the International
regulatory frameworks for audit and assurance
Professional
and Identification of non-compliance with Laws and
regulations and incidences of money laundering
regulatory
environment Fundamental principles of the Code of Ethics
specific guidelines and conflict of application

Professional Responsibility and liability in areas

including legal liability, negligence, fraud and
errors and restrictions thereon.
The audit expectations gap
 Applications and evaluations of the local and
International Regulatory Frameworks for Audit
and Assurance service
Corporate scandals –

Enron used special purpose entities to hide debt off of its balance sheet and mark-to-market accounting to overstate
revenue. In addition, it ignored internal advice against these practices knowing that its publicly disclosed financial
position was incorrect

Enron was one of the fastest-growing and supposedly innovative companies in the United States in the
1990s. However, the entire edifice was based on massive accounting and corporate fraud that eventually
came to light and resulted in Enron declaring bankruptcy in December 2001—the biggest corporate
bankruptcy in the world at that time
Malawi’s Corporate Scandals -
The PTC The Alliance
Scandal Capital
The AHL
Scandal
Scandal
Suppliers and
Staff lost more Investors lost
Deloitte sued
than K7 billion K21.7 billion
over a loss of
K44 billion on
alleged
professional
negligence

Are corporate guarantees

effective?
Where were the auditors when
these entities were losing these
funds?
How effective is Malawi’s
Regulatory Framework for
accountants and auditors?
 1.1 Laws that governs the audit practices in Malawi
1.1.1 Public Accountants and Auditors Act 2012 -

The Malawi
Regulatory
Environment
 1.1 Laws that governs the audit practices in Malawi Cont’ed
1.1.1 Public Accountants and Auditors Act 2012 Cont’ed-

The Malawi
Regulatory
Environment
 1.1 Laws that governs the audit practices in Malawi Cont’ed
1.1.1 Public Accountants and Auditors Act 2012 Cont’ed-

The Malawi
Regulatory
Environment
 1.1Laws that governs the audit practices in Malawi
Cont’ed

1.1.2 Companies Act 2013

The Malawi
Regulatory
Environment
International
Regulatory
Environment
International
Standards on
Auditing
(ISAs)
International
Standards on
Auditing
(ISAs)
International
Standards on
Auditing
(ISAs)
International
Standards on
Assurance
Engagements
(ISAs)
In Malawi with have Malawi Code II Code of Best Practice for Corporate Governance In Malawi
 Identification of non-compliance with
Laws and regulations and incidences of
money laundering
 Hot topic internationally, Auditors must always the consider

Money the risks of money laundering when

performing their audit assignments

Laundering
Relevant Anti-Money Laundering Laws
 Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act 2006
 Public Accountants and Auditors Act 2012

Companies Act 2013 – Section 231 to

Laws of Section 243
Malawi That
Governs Audit Financial Services Act – Section 55 to
Section 60
Performance
Money Laundering, Proceeds of Serious
Crimes and Terrorist Financing Act 2006 –
Section 29
The End