Prime Minister Datuk Seri Najib Tun Razak said since the introduction of the provisions several years ago, the Securities Commission (SC) has received reports mainly from external auditors of public-listed companies.
"Some of these reports have led to enforcement action being taken against the perpetrators, directors and senior management of the company.
"With this, it is encouraging to note that a stronger culture of public accountability and integrity has been established," he said in his keynote address at the World Congress of Accountants 2010 here Monday.
His speech was read by Minister in the Prime Minister Department, Tan Sri Nor Mohamed Yakcop.
Najib said the crucial role of accountants in detecting fraud was reflected in the number of whistle-blowers that had provided information to the SC under the protection of the Capital Market and Services Act.
He said the Act imposed a mandatory duty upon auditors and specific employees of listed corporations to report breaches of security laws and the rules of the stock exchange to the authority.
"Malaysia has strengthened its law to enable the SC to carry out an oversight function over external auditors of public interest entities," he said, adding that, as the result the Audit Oversight Board was established.
Najib said the successful development of a strong accounting industry must be premised on the ability of practitioners to play an active role in exercising sound professional judgment in the application of global accounting standards.
He said the international accountancy profession and government regulators, standard-setters and public must be committed to establish and promote adherence to high quality standards.
"It must be stressed that the goal of financial reporting must be to provide investors with material information to facilitate investment decision," he said.
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