Criminal Liability Of Auditors For Financial Statements

This article discusses the legal position of the auditors in Malaysia under the criminal law. It examines whether the legal principles under this law are able to address the scandals which have emerged in recent years pertaining to auditors. It also investigates whether the legal principles under criminal law impose additional duties and obligations on auditors as opposed to those duties and obligations imposed under the company law. The study finally discusses whether action can be brought against the auditors and the difficulties faced in doing so. These issues are extremely crucial because auditors� profession is becoming a high-risk profession. Therefore, principles of criminal law coupled with its intricate rules have to play its role effectively to ensure that the interests of all parties who have a stake in the matter are well-balanced with the role and duties expected of auditors. This study suggests that the current legal framework under criminal law governing auditors must be reassessed in the wake of the scandals involving auditors both in the domestic and international forefront.