Part B Read the paragraph below, taken from full an article from The Star, 29 March 2014. Is the MIA's latest report a clear snapshot of audit quality in Malaysia? It's easy to be sceptical about self-assessment exercises. How many people can be wholly critical and objective when evaluating what they see in the mirror? And surely fewer still are secure and honest enough to share the full results with the rest of the world. So how should we view the Practice Review Report released this week by the Malaysian Institute of Accountant (MIA)? The tricky element here is that the institute is a regulator as well as a professional body. Is the report an authoritative, warts-and-all survey of the profession that the institute oversees, or is it something that promotes the interests of MIA members? Then again, these objectives don't have to be mutually exclusive. When steps are taken to elevate the standards of the profession - starting with identification of problems - the accountants have much to gain. In his message in the report, MIA president Johan Idris (who also chairs the institute's Practice Review Committee) wrote, "The findings of practice review have significant educational content and are beneficial to practitioners. They serve to guide our practitioners in training their staff and alerting them to many pitfalls that may derail them in the course of carrying out the policies and procedures of the firm." The institute's media release expanded this point: "This quality assessment programme will drive consistency and raise the bar on audit quality, thereby underpinning public confidence in the accountancy profession." Required: (i) Who are the responsible parties that involved with the practice review and why? (3 marks) (ii) What is the objective of practice review? (2 marks) (iii) Findings from practice review are beneficial to practitioners. How do you think practitioner may benefit from it? (4 marks) (vi) Identify at least three (3) challenges audit firms faced in practicing audits in Malaysia and solutions to the challenges. (6 marks) (Total: 15 marks) (Total Question 1: 35 marks)