The external auditing plays a critical role in the business environment whereby modern industrial economies are based on the ideal of capitalism, a system of economy designed to allocate resources using market mechanisms (Watts & Zimmerman, 1983). To ensure an efficient allocation of resources in a capitalist economy, credible information about the company operations should always be made available for decision making process (Koo & Sim 1999). Such information is available in the financial statement of companies. The quality and the credibility of the information in the financial statement will be enhanced by having the statement externally audited (Pond et al, 1997; Husnin Nawawi & Puteh-Salin 2016).

Required

With reference to the above statements, explain what are the mechanisms that had been in place to ensure the quality of auditing function is maintained. You are required to give some suggestions on top of the present mechanisms to further enhance the quality of audit in Malaysia.