The Auditor General’s Office unveiled its Regulation for Audit and Accountability of State-owned Enterprises (SOEs) at a ceremony held in the morning today. The ceremony – led by Auditor General Hussain Niyazy who is also the President of Institute of Chartered Accountants of the Maldives (CA Maldives) – also marked the unveiling of another regulation, the Regulation for Registration of Public Interest Entity (PIE) Auditors issued by CA Maldives. Minister of Finance Mr. Ibrahim Ameer graced the ceremony with his presence as Chief Guest.
The Regulation for Audit and Accountability of SOEs is the culmination of efforts taken by the Auditor General to reform the existing mechanisms for the audit and accountability of SOEs and aims to result in a more robust framework for reporting the results of audits of SOEs which in turn would lead to improved communication among relevant stakeholders and increased transparency and accountability of SOEs in discharging their responsibilities towards the government and the public. The regulation is also designed to ensure compliance with applicable legislations and the existence of strong governance and fraud prevention mechanisms at SOEs. Among the matters to be reported under this regulation by the external auditors of SOEs are: (a) key internal control deficiencies; (b) fraud risks; (c) non-compliance with applicable procurement guidelines and best practices; and (d) non-compliance with the Code of Corporate Governance for SOEs.
The regulation for registration of PIE auditors is intended to: (a) provide assurance to provide assurance to regulatory authorities, audit committees and boards of directors of PIEs that the auditors registered with CA Maldives as PIE Auditors possess the requisite competence, and comply with applicable professional standards and legislative requirements; and (b) enhance the quality and credibility of statutory audits in PIEs. The regulation defines PIEs in the context of Maldives and specifies criteria for registration as PIE auditors. Under the regulation a PIE is defined as follows:
(a) An entity whose shares, stock or debt are quoted or listed on a regulated market; or
(b) An entity that is subject to financial statement audit under the Regulation on the Audit and Accountability of State-owned Enterprises issued by the Auditor General’s Office; or
(c) An entity that regulates financial institutions under the powers granted by legislation; or
(d) An entity that regulates financial or capital markets under the powers granted by legislation; or
(e) An entity regulated by the Maldives Monetary Authority; or
(f) An entity not regulated by the Maldives Monetary Authority that holds assets in a fiduciary capacity for a broad group of outsiders; or
(g) A fund that is regulated by Capital Market Development Authority; or
(h) An entity that is defined by regulation or legislation as a PIE