Integrity of Accounting Information –

Malaysian Framework
• Institutional framework
 Financial Reporting Foundation
 Malaysian Accounting Standards Board (MASB)
 Bank Negara Malaysia
• Regulatory framework
 Statutory reporting (Companies Act)
 Security Commissions Act and regulations
 Reporting requirements of Bursa Malaysia
• Professional Bodies
 Malaysian Institute of Accountants (MIA)
A statutory body established in 1967 under the Accountants Act 1967. It regulates the
practices of the whole accounting profession in Malaysia.
 Malaysian Institute of Certified Public Accountants (MICPA)
Established in 1958 as a company limited by guarantee. A private sector accounting body
that regulates the practices of its members who carry the title of CPA.
 Other professional bodies operating in Malaysia: ACCA, CPA Australia, CIMA, ICAEW, IIA

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 Discussion
E1.5 Jim Hurley is an accountant for a local manufacturing
company. Jim’s good friend, Mike Kotowski, has been
operating a retail sporting goods store for about a
year. The store has been moderately successful, and
Mike needs a bank loan to help finance the next stage
of his store’s growth. He has asked Jim to prepare a
financial statements that the banker will use to help
decide whether to grant the loan. Mike has proposed
that the fee he will pay for Jim’s accounting should be
contingent upon his receiving the loan.
Required:
• What factors should Jim consider when making his
decision about whether to prepare the financial
statements for Mike’s store.

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 Discussion
E1.6 Rick and Margaret Berry have owned and operated a
retail furniture store for more than 30 years. They
have employed an independent CPA during this time
to prepare various sales tax, payroll tax, and income
tax returns, as well as financial statements for
themselves and the bank from which they have
borrowed money from time to time. They are
considering selling the store but are uncertain about
how to establish an asking price.
Required:
• What type of information is likely to be included in the
material prepared by the CPA that may help Mr. and Mrs.
Berry establish an asking price for the store?

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