KUALA LUMPUR (Aug 26): Asean audit regulators are in discussions with the World Bank on collaborative efforts to further raise the standard of audit quality and boost the confidence in the capital market in the region.

Among the areas of collaboration between the Asean Audit Regulators Group (AARG) and the World Bank include capacity building workshops as well as technical assistance catering to the differing capacity levels of Asean members.

These initiatives, according to a statement issued by the Securities Commission of Malaysia (SC), would complement AARG's ongoing efforts to raise the standard of audit quality in Asean and achieve greater alignment in audit regulatory practices among members. The statement was issued in conjunction with AARG's sixth annual meeting in Singapore today.

The meeting was hosted by Accounting and Corporate Regulatory Authority (ACRA) and was attended by over 100 participants, including regional and global leadership of the Global Public Policy Committee (GPPC) audit firms.

The AARG members comprise Singapore's ACRA, Malaysia's Audit Oversight Board (AOB), Indonesia's Finance Professions Supervisory Center (PPPK) and Thailand's Securities and Exchange Commission (SEC).

The GPPC audit firms comprise the six largest international audit firm networks namely BDO International, Deloitte Touche Tohmatsu Ltd, Ernst & Young Global Ltd, Grant Thornton LLP, KPMG International Cooperative, and PricewaterhouseCoopers LLP.

SC said the World Bank is seeking support from donors and other stakeholders for this planned collaboration.

AOB member Eugene Wong said the new auditor reporting standards are instrumental in strengthening the quality of information provided in the auditor's report.

"The new auditor's report will increase transparency and enhance the utility of the audit report, thereby enriching the value of audits and their relevance," Wong added.

According to him, auditors play a meaningful role in the process of resource allocation and the AARG's work with its constituents in rolling out this initiative in Asean will help drive the flow of useful and relevant information to the Asean capital markets.