Independence in audit engagements
For audit engagements, we maintain independence in accordance with the MIA By-Laws (On Professional Ethics, Conduct and Practice).
Why independence matters
The MIA By-Laws state that independence is required in the public interest when professional accountants in public practice perform audit or review engagements. Independence supports the ability to form and express a conclusion without influences that compromise professional judgement.
Independence of mind and independence in appearance
The MIA framework distinguishes between two connected aspects of independence:
- Independence of mind concerns the state of mind that permits a conclusion to be expressed without influences that compromise professional judgement.
- Independence in appearance concerns avoiding facts and circumstances that would lead a reasonable and informed third party to conclude that integrity, objectivity or professional scepticism has been compromised.
Both aspects matter. An audit engagement must be approached with objective professional judgement, and the surrounding facts and circumstances must also support confidence in that judgement.
Assessing facts and circumstances
The independence requirements are applied through the MIA conceptual framework. This involves identifying, evaluating and addressing threats to independence. The relevant assessment is fact-specific: relationships, interests, services, responsibilities and other circumstances may matter depending on the engagement.
Information available when an engagement is first considered may not be the whole picture. If relevant circumstances change, they may need to be assessed in the context of the independence requirements.
What this means in practice
A prospective audit client may be asked for information needed to understand relevant relationships and circumstances. This is not an administrative formality. It helps determine whether the independence requirements can be met for the engagement concerned.
No general website statement can replace that assessment. The appropriate position depends on the facts, the applicable requirements and the scope of the proposed engagement.
Scope of this page
This page provides general information only and is directed to independence in audit engagements. It does not provide an audit opinion, assurance conclusion or advice on a particular set of facts. For further information about a proposed engagement, please contact Saifudin & Co.
Source: Malaysian Institute of Accountants, By-Laws (On Professional Ethics, Conduct and Practice), updated February 2025, including Part 4A and Section 400.