Compliance Audit Checklist Essential for Licensed Auditors in Maldives
In a move aimed at ensuring compliance with regulatory requirements, licensed auditors in Maldives must now submit a comprehensive checklist detailing their audit practices and adherence to applicable laws and regulations.
Mandatory Compliance Under Section 15(b) of R-3/2021
The checklist is mandatory under Section 15(b) of the Regulation for Statutory Audit and Assurance Services in Maldives (R-3/2021). It covers various aspects of quality management, continuing professional development initiatives, and compliance with applicable laws and regulations.
Required Information
The report requires licensed auditors to provide detailed information on:
- Firm’s risk assessment process
- Governance and leadership structure
- Acceptance and continuance of client relationships
- Engagement performance
- Resources
- Information and communication systems
- Monitoring and remediation processes
If an auditor is unable to comply with any of the required areas, they must provide a clear explanation for non-compliance. The checklist also requires auditors to outline their plans for future compliance and provide details on any training programs completed by partners and staff.
Compliance Declaration
Licensed auditors are required to declare whether their firm has complied with applicable laws, regulations, and standards, including:
- Maldives Chartered Accountants Act 13/2020
- Regulation on Statutory Audit & Assurance Services in Maldives R-3/2021
- Income Tax Act 25/2019
- Partnership Act 13/2011
- Companies Act 10/96
Audit Engagements
The report also requires auditors to provide details on their audit engagements, including:
- Revenue from audit services provided to large companies and small and medium-sized enterprises (SMEs)
- Revenue from non-audit services provided to public interest entity (PIE) clients
Declaration of Truthfulness
Finally, licensed partners must sign a declaration stating that the information provided is true, accurate, and complete to the best of their knowledge. A false declaration can result in sanctions being taken against the auditor or invalidate any decision related to the licence of the firm.
Conclusion
The compliance audit checklist serves as an essential tool for ensuring the integrity and credibility of licensed auditors in Maldives, promoting transparency and accountability in the auditing profession.