*ACCOUNTANTS ACT 1967

(Omitted).

The Minister may by notification in the Gazette suspend the operation of this Act in any part of Malaysia and may at any time after that remove the suspension:

Provided that the power of suspension shall not be exercised more than once in relation to any part of Malaysia.

Interpretation

Without prejudice to the generality of subsection (1), the

Institute shall have power to do all acts as are necessary for the purposes of the Institute and in particular—

to determine the qualifications of persons for admission as members;

to provide for the training and education by the Institute or any other body, of persons practising or intending to practise the profession of accountancy;

(ba) to approve the Malaysian Institute of Accountants

Qualifying Examination and to regulate and supervise the conduct of that Examination;

to regulate the practice of the profession of accountancy in

Malaysia;

to promote, in any manner it thinks fit, the interests of the profession of accountancy in Malaysia;

to render pecuniary or other assistance to members or their dependants as it thinks fit with a view to protecting or promoting the welfare of members; and

generally to do such acts as it thinks fit for the purpose of achieving any of the aforesaid objects.

Rules of the Institute

the regulation of the practice of the profession of accountancy in Malaysia;

the admission of members, the fees payable by members on admission and the manner in which a person shall cease to be a member;

the qualifications of persons for admission as members;

the training or education of candidates for admission as members and the fees payable therefor;

the practical experience required for registration as chartered accountants and the authority of the Council or any Committee thereof to approve places of employment in which the practical experience may be obtained;

the classification from time to time of members;

the election, appointment, resignation and removal of members of the Council;

subject to subsection 8(2), the election, appointment, resignation and removal of the President and the

Vice-President of the Institute;

subject to section 31, the holding of meetings of the Council and of the Institute;

subject to section 31, the manner of voting at any meeting of the Council or of the Institute;

the procedure of the Investigation Committee and the

Disciplinary Committee and the procedure relating to any complaint to any such Committee;

(ka) the procedure of the Disciplinary Appeal Board;

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the publication in the Gazette, newspapers and elsewhere of proceedings and findings of the Disciplinary Committee and the Disciplinary Appeal Board;

the use and custody of the common seal of the Institute;

the custody, investment and expenditure of the funds and property of the Institute;

the regulation and administration of the Institute in all matters within its powers;

the provision relating to admission of associate members, and conferring of privileges on such members as the

Institute may think proper, not inconsistent with this Act;

(pa) the approval, regulation and supervision of the Malaysian

Institute of Accountants Qualifying Examination;

such other matters as are required to be prescribed.

Rules made under subsection (1) shall require the approval of the Minister and shall be published in the Gazette.

the Accountant General, Malaysia, or his nominee;

not more than five members appointed from the higher educational institutions specified in Part I of the

Third Schedule;

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the President of the Malaysian Association of Certified

Public Accountants;

three members appointed from amongst the Presidents of the local branches of the recognized bodies specified in

Part II of the First Schedule;

one member appointed from amongst the members of the council of the Malaysian Association of Certified Public

Accountants, other than its President;

not more than nine other members appointed from amongst suitably qualified persons; and

ten members elected by the annual general meeting of the

Institute in accordance with the rules of the Institute.

The members referred to in paragraphs (1)(b), (d), (e) and (f)

shall be appointed by the Minister on the advice of the Accountant

General and such appointments may be revoked by the Minister without assigning any reason therefor.

The total Council members shall not be less than twenty-five and more than thirty

The President and Vice-President of the Institute shall be elected by a simple majority vote of the total Council members from amongst the Council members for a term of two years.

In the event of any vacancy arising in the office of the President or of the Vice-President, the Council shall at its next meeting or as soon as may be thereafter elect one of the Council members to fill the vacancy by a simple majority vote of the total Council members for a new term of two years.

The President or Vice-President of the Institute shall not hold office for more than two consecutive years.

If the members of the Council fail to elect the President and

Vice-President as specified in subsection (4) or (5), the Minister shall

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appoint the President and Vice-President from amongst the Council members for a period of two years.

A Council member shall not hold office for more than four consecutive years.

The Minister may, in respect of each Council member appointed under paragraphs (1)(c) and (d), appoint an alternate member to attend, in place of that Council member, meetings of the Council when that

Council member is for any reason unable to attend.

When attending meetings of the Council, an alternate member shall for all purposes be deemed to be a member of the Council.

An alternate member shall, unless he sooner resigns his membership or his appointment is sooner revoked, cease to be an alternate member when the Council member in respect of whom he is an alternate cease to be a member of the Council.

General powers of the Council

to make by-laws to provide for all matters not expressly reserved for the Institute in general meeting whether the same be expressed amongst its powers or not and by-laws for the inculcation of sound practice of the profession of accountancy, the prevention of illegal and dishonourable practices of that profession and the promotion of the interests of that profession;

to appoint at its discretion such officers, clerks, agents and servants for permanent, temporary or special services as it may deem fit and to determine their duties and terms and conditions of service;

to take cognizance of anything affecting the Institute or the professional conduct of its members and to bring before any general meeting of the Institute any matter which it considers material to the Institute or to the interests of the profession and make any recommendations and take such action as it deems fit in relation thereto;

to communicate with other similar bodies and with members of the profession in other places for the purpose of obtaining and communicating information on all matters likely to prove beneficial or interesting to members and to negotiate and arrange with those bodies for the reciprocal recognition of the status of members;

to establish branches of the Institute as it deems fit;

to delegate in its absolute discretion any of its powers, privileges and discretions to any branch of the Institute on such conditions and for such period as it deems fit, provided that the disciplinary powers of the Council shall not be delegated;

to appoint Committees of the Institute for such purposes and with such powers as may be prescribed;

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to exercise all such powers, privileges and discretions as are not by this Act expressly and exclusively required to be exercised by members in general meeting; and

to use the official seal of the Institute.

Specific powers of first Council

All rules made under subsection (1) shall require the approval of the Minister before publication in the Gazette and shall remain in force until amended or revoked under section 7.

chartered accountants;

licensed accountants; and

associate members.

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The register shall be kept at the office of the Institute and shall be available for inspection at reasonable hours on payment of a prescribed fee.

The Council shall cause to be published in the Gazette a copy of the register at least once in every year.

Membership of Institute

he has passed any of the final examinations specified in

Part I of the First Schedule and has not less than three years’

practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organization or other undertaking approved by the Council;

he is a member of any of the recognized bodies specified in

Part II of the First Schedule; or

he is eligible to sit for and has passed the Malaysian

Institute of Accountants Qualifying Examination and has not less than three years’ practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organization or other undertaking approved by the Council.

For the purposes of paragraph (1)(a) a person shall be deemed to have passed the examinations referred to in that paragraph or any part of such examinations, as the case may be, if he has passed an examination or part of an examination (whether in Malaysia or elsewhere) which is recognized by the Institute as being equivalent to or higher than the examinations or part of it first-mentioned in this subsection.

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No person shall be admitted by the Council as a member of the

Institute if he is less than twenty-one years of age or if in the opinion of the Council he is not a fit and proper person to be admitted as a member.

Any person dissatisfied with the decision of the Council under subsection (3) may appeal to the High Court.

The procedure governing appeals under subsection (4) shall be substantially the same as for appeals to the High Court from decisions of a Subordinate Court in civil matters.

A body corporate shall not be eligible for membership of the

Institute.

The Minister may after seeking the advice of the Institute, by order published in the Gazette amend the First Schedule as he thinks fit.

Membership as chartered accountants

he has passed any of the final examinations specified in

Part I of the First Schedule and has not less than three years’

practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organization or other undertaking approved by the Council;

he is a member of any of the recognized bodies specified in

Part II of the First Schedule;

he is eligible to sit for and has passed the Malaysian

Institute of Accountants Qualifying Examination and has not less than three years’ practical accounting experience in the service of a chartered accountant or in a Government

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department, bank, insurance company, local authority or other commercial, financial, industrial or professional organization or other undertaking approved by the Council;

or

he has authority under subsections 8(2) and (6) of the

*Companies Act 1965 [Act 125] to act as a company auditor without limitation or conditions.

Malaysian Institute of Accountants Qualifying Examination

shall be conducted by the higher educational institutions specified in Part I of the Third Schedule or the recognized bodies specified in Part II of that Schedule; and

shall not be conducted without the approval of the Institute.

A person shall only be eligible to sit for the Malaysian Institute of Accountants Qualifying Examination if he possesses a qualification relating to accounting, business or finance recognized by the Public

Services Department of the Government or other qualifications approved by the Council.

The Minister may, after consulting the Institute, by order published in the Gazette amend the Third Schedule.

Membership: Licensed accountants

if he has been granted limited or conditional approval to act as an auditor of companies under subsection 8(6) of the

*Companies Act 1965, or if he has been in public practice as an accountant, a tax consultant or a tax adviser immediately before the coming into operation of this Act;

or

if he is a member of the Malaysian Society of Accountants and has passed any of the final examinations of that body last held in December 1992 and has not less than three years’ practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organization or other undertaking approved by the Council.

A licensed accountant admitted under this section shall be subject to the same restrictions, limitations or conditions as have been imposed upon him under the *Companies Act 1965.

A licensed accountant who has been certified by the Council acting on a report by a Committee appointed under section 10 as fit to be admitted as a chartered accountant, shall be entitled to be admitted as such.

Associate member

An associate member is entitled to all the privileges accorded to a member who is a chartered accountant or a licensed accountant but is not entitled to vote at the meetings of the Institute held under paragraph 8 of the Second Schedule nor request for a general meeting under subparagraph 8(2) of that Schedule.

Entitlement

(Deleted by Act A1099).

Subject to section 23, any member who has been registered as a licensed accountant shall, so long as he is so registered, describe himself as a “Licensed Accountant”, and may use the letters “L.A.(M)”

after his name.

Subject to section 23, any person who is registered as an associate member shall, so long as he is so registered, describe himself as an “Associate Member”, and may use the letters “A.M.(M)” after his name.

Prohibition

allow any person not being a member to practise in his name as a chartered accountant;

be a director or a shareholder in a company incorporated under the *Companies Act 1965, or any other written law,

*NOTE—The Companies Act 1965 [Act 125] has since been repealed by the Companies Act 2016

[Act 777] w.e.f. 31 January 2017—see subsection 620(1) of Act 777.

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being a company which carries on a business of auditing, nor shall he use a trade or association name under which to practise the profession;

in any way, practise as a chartered accountant or licensed accountant other than—

in his own name;

certify accounts verified by a person other than a member of his firm or of his staff, unless the qualification of that other person and the extent of his work is disclosed;

directly or indirectly allow or agree to allow any advocate to participate in the profits of the member’s professional work or participate in the profits of the professional work of an advocate;

directly or indirectly accept or agree to accept from an auctioneer, broker, or other agent employed for the sale or letting of or otherwise in dealing with any movable or immovable property in the management, administration, or disposal of which the member or his partner or any of his partners is engaged, any part or proportion of or any commission or bonus on the charges payable to the auctioneer, broker, or agent, which is in the nature of a secret commission.

(Deleted by Act A1099).

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an Investigation Committee comprising five members of the Council of whom three shall form a quorum;

a Disciplinary Committee comprising five members of the

Council not being members of the Investigation Committee of whom three shall form a quorum; and

a Disciplinary Appeal Board comprising five members of the Council of whom three shall form a quorum.

Functions of Investigation Committee and Disciplinary Committee

The Disciplinary Committee shall if it thinks fit exercise in respect of that member any disciplinary powers conferred upon it by rules.

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Appeal against decision of Disciplinary Committee

When the Disciplinary Appeal Board considers an appeal made under subsection (1), any member of the Investigation Committee who conducted the investigation into the complaint against the member who is making the appeal, or any member of the Disciplinary Committee against whose decision the appeal is made shall not be present or in any way participate in any proceedings relating to that appeal.

The Disciplinary Appeal Board may confirm, reverse or vary the decision of the Disciplinary Committee.

The decision of the Disciplinary Appeal Board under subsection (3) shall be final.

Holding out as chartered accountant or auditor or tax consultant

practise or hold himself out as a chartered accountant, auditor, tax consultant, tax adviser or any other like description;

adopt, use or exhibit the terms “chartered accountant”,

“auditor”, “tax consultant”, “tax adviser” or any other term of like description; or

adopt, use or exhibit the term “accountant” or any other term of like description in such circumstances as to indicate or to be likely to lead persons to infer that he is a chartered accountant or that he is qualified by any written law to

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practise the profession of or is in practice as a chartered accountant:

Provided that nothing in this section shall operate to prevent an advocate or any person authorized under any other law for the time being in force in Malaysia from carrying on the work of a tax consultant or a tax adviser.

Holding out as licensed accountant or associate member

practise or hold himself out as a licensed accountant or an associate member;

adopt, use or exhibit the terms “licensed accountant” or

“associate member”; or

adopt, use or exhibit the term “accountant” or any other term of like description in such circumstances as to indicate or to be likely to lead persons to infer that he is a licensed accountant or an associate member.

Saving

procures or attempts to procure registration or a certificate of membership under this Act by knowingly making or producing or causing to be made any false or fraudulent declaration, certificate, application or representation, whether in writing or otherwise;

wilfully makes or causes to be made any falsification in the register of the Institute;

forges, alters or counterfeits any certificate of membership issued under this Act;

uses any forged, altered or counterfeit certificate of membership under this Act knowing the same to have been forged, altered or counterfeited; or

personates a member of the Institute or buys, sells or fraudulently obtains a certificate of membership issued under this Act, shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding one year.

Penalty for certain offences

the final examination of the University of Malaya for the Diploma Perakaunan

(Diploma in Accounting);

the final examination of the University of Malaya for the Ijazah Sarjana Muda

Perakaunan (Degree of Bachelor of Accounting);

the final examination of the Universiti Kebangsaan Malaysia for the Ijazah

Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting

(Honours));

the final examination of the MARA Institute of Technology for the Diploma

Lanjutan Perakaunan (Advanced Diploma in Accountancy);

the final examination of the Universiti Teknologi MARA for the Ijazah Sarjana

Muda Perakaunan (Degree of Bachelor of Accounting);

the final examination of the Universiti Utara Malaysia for the Ijazah Sarjana

Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));

the final examination of the Universiti Pertanian Malaysia for the Ijazah

Bacelor Perakaunan (Kepujian) (Degree of Bachelor of Accounting

(Honours));

the final examination of the Universiti Putra Malaysia for the Ijazah Bacelor

Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));

the final examination of the Universiti Islam Antarabangsa for the Ijazah

Sarjana Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting

(Honours));

the final examination of the Universiti Sains Malaysia for the Ijazah Sarjana

Muda Perakaunan (Kepujian) (Degree of Bachelor of Accounting (Honours));

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the final examination of the Universiti Utara Malaysia for the Degree of

Bachelor of Accounting (Honours) (Information System);

the final examination of the Universiti Tenaga Nasional for the Degree of

Bachelor of Accounting (Honours), the academic programme for which first commenced from the academic year 2002/2003 onwards;

the final examination of the Universiti Multimedia for the Degree of Bachelor of Accounting (Honours), the academic programme for which first commenced from the academic year 2002/2003 onwards;

the final examination of the Universiti Malaysia Terengganu for the Degree of

Bachelor of Accounting (Honours);

the final examination of the Universiti Malaysia Sabah for the Degree of

Bachelor of Accounting (Honours);

the final examination of the Universiti Selangor for the Degree of Bachelor of

Accounting (Honours);

the final examination of the Universiti Sultan Zainal Abidin for the Degree of

Bachelor of Accounting (Honours);

the final examination of the Universiti Sains Islam Malaysia for the Degree of

Bachelor of Accounting (Honours);

the final examination of the Universiti Tunku Abdul Rahman for the Degree of Bachelor of Accounting (Honours);

the final examination of the INTI International University for the Degree of

Bachelor of Accounting (Honours);

the final examination of the Management and Science University for the

Degree of Bachelor in Accountancy (Honours), the academic programme for which first commenced with the academic session November 2010 onwards.;

the final examination of the Universiti Teknologi Malaysia for the Degree of

Bachelor of Accounting with Honours, the academic programme for which first commenced with the academic session March 2023 onwards;

the final examination of the Universiti Pendidikan Sultan Idris for the Degree of Bachelor of Accountancy with Honours, the academic programme for which first commenced with the academic session March 2023 onwards;

the final examination of the Universiti Malaysia Sarawak for the Degree of

Bachelor of Accountancy with Honours, the academic programme for which first commenced with the academic session March 2023 onwards;

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the final examination of the Tunku Abdul Rahman University of Management and Technology for the Degree of Bachelor of Accounting (Honours), the academic programme for which first commenced with the academic session

February 2023 onwards.

Malaysian Association of Certified Public Accountants;

Institute of Chartered Accountants of Scotland;

Institute of Chartered Accountants in England and Wales;

Institute of Chartered Accountants in Ireland;

Association of Chartered Certified Accountants (United Kingdom);

(Deleted by P.U. (A) 164/2024);

CPA Australia;

(Deleted by P.U. (A) 164/2024);

Canadian Institute of Chartered Accountants;

Institute of Chartered Accountants of India;

Chartered Institute of Management Accountants (United Kingdom);

Chartered Accountants Australia and New Zealand.

SECOND SCHEDULE

President of Institute

Notwithstanding section 8, the first seven members referred to in paragraph (l)(c) of that section shall be appointed by the Minister from amongst persons who would be eligible for registration as *registered accountants and shall hold office from the dates of their appointments until the first general meeting of the

Institute when their places shall be filled by *registered accountants elected by the members of the Institute in accordance with the rules:

Provided that any such retiring member of the first Council shall be eligible for re-election if he is registered as a *registered accountant.

At each subsequent annual general meeting three elected members of the

Council from each group referred to in paragraph 8(1)(b) or (c) who have been longest in office shall retire and their places shall be filled by *public accountants and *registered accountants respectively elected in accordance with the rules:

Provided always that retiring members of the Council shall be eligible for re-election if they are not otherwise disqualified from holding office in the Council.

The members of the first elected Council should ballot within each group to decide who should be the first three retiring members in that group. The procedure of balloting shall also be used on other occasions when it is necessary to determine which of the members should retire pursuant to subparagraph (3).

Interim elected members

For the purpose of subparagraph (1), “appointed date” means the date on which this subparagraph comes into operation.

*NOTE—A public accountant or registered accountant shall, on the coming into operation of the

Accountants (Amendment) Act 2011 [Act A1099], be known as a chartered accountant–see section 29 of

Act A1099.

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Rotation of elected members

at the second and third annual general meetings, the elected members of the Council shall ballot or volunteer to determine the three members of the Council who shall retire; and

at each subsequent annual general meeting thereafter, three elected members of the Council who have been longest in office shall retire and their places shall be filled by members elected in accordance with paragraph 8(1)(g).

For the purpose of subsubparagraph (1)(b), retiring elected members of the

Council shall be eligible for re-election if they are not otherwise disqualified from holding office in the Council.

When members of the Council to vacate office

he resigns his office;

he is absent from three consecutive meetings of the Council without its consent;

he becomes bankrupt or insolvent or enters into a composition with any creditor or takes or attempts to take the benefit of the provisions of any written law to liquidate his assets or affairs;

he becomes of unsound mind;