Malaysia legislation
Section 5
of KAEDAH-KAEDAH PROFESION GUAMAN SYARIE (WILAYAH-WILAYAH PERSEKUTUAN) (LAPORAN AKAUNTAN) 2023
Seksyen 5
(1)
For the purposes of giving an accountant’s report, an accountant shall ascertain from the Peguam Syarie particulars of all accounts, including trust accounts, kept, maintained or operated by the Peguam Syarie in connection with his practice at any time during the accounting period to which his report relates and make the following examination of the books, accounts and other relevant documents of the Peguam Syarie:
(a)
examine the book-keeping system in every office of the Peguam Syarie to enable the accountant to verify that such system complies with the
Syarie
Legal
Profession
(Federal Territories) (Account of Peguam Syarie) Rules 2023, and if so determine that—
(i)
an appropriate ledger account is kept for each client;
(ii)
such ledger accounts show separately from other information particulars of all clients, money received, held or paid for each client; and
(iii)
transaction relating to clients’ money and any other money dealt with through a client account are recorded in the Peguam Syarie’s book so as to distinguish such transactions from transactions relating to any other money received, held or paid by the Peguam Syarie;
(b)
make test checks of postings to clients’ ledger accounts from records of receipts and payments of clients’ money and make test checks of the costs of such accounts and records;
(c)
compare a sample of lodgement into the payments from the client account as shown in account statements with
P.U. (A) 67 24
the Peguam Syarie’s records of receipts and payments of clients’ money;
(d)
enquire into and test check the system of recording costs and of making transfer in respect of costs from the client account;
(e)
make a test examination of such documents as he shall request the Peguam Syarie to produce to him with the object of ascertaining and confirming—
(i)
that the financial transactions, including those giving rise to transfer from one ledger account to another, evidenced by such documents, are in accordance with the Syarie Legal
Profession (Federal Territories) (Account of Peguam Syarie)
Rules 2023; and
(ii)
that the entries in clients’ ledger accounts reflect those transactions in a manner complying with the Syarie Legal
Profession (Federal Territories) (Account of Peguam Syarie)
Rules 2023;
(f)
extract, or check extractions of, balances of the clients’ ledger accounts during the accounting period under review at not fewer than two dates selected by the accountant (one of which may be the last day of the accounting period), and at each such date—
(i)
compare the total as shown by such ledger accounts of the liabilities to the clients, including the clients for whom trust money is held in the client account, with the cash book balance on client account; and
P.U. (A) 67 25
(ii)
reconcile that cash book balance with the client account balance as confirmed directly to the accountant by the Islamic financial institution;
(g)
satisfy himself that reconciliation statements have been kept in accordance with the Syarie Legal Profession (Federal Territories)
(Account of Peguam Syarie) Rules 2023;
(h)
make a test examination of the clients’ ledger accounts in order to ascertain whether payments from the client account have been made on any individual account in excess of money held on behalf of that client;
(i)
peruse such office ledger, cash accounts and account statements maintained by the Peguam Syarie to ascertain whether any client’s money has not been paid into a client account; and
(j)
request for such information and explanations as he may require arising out of paragraphs (a) to (i).
(2)
Where a Peguam Syarie uses a computerised or mechanical system of accounting which automatically produces an extraction of all client ledger balances, the requirement of paragraph (1)(f) that all client ledger balances extracted on the list produced by the computer or machine must be checked against the individual records of ledger accounts is waived provided that the accountant—
(a)
is satisfied that a satisfactory system or control is in operation;
(b)
carries out a test check of the extraction against the individual records; and
(c)
specifies in his report that he has relied on this manner.
P.U. (A) 67 26
(3)
Except as provided in subrule (2), the remainder of the requirements of paragraph (1)(f) is not waived and the appropriate comparisons must continue to be made at no fewer than two dates.
(4)
Nothing in subrule (1) shall require the accountant—
(a)
to extend his enquiries beyond the information contained in the relevant documents relating to any client’s matter produced to him supplemented by such information and explanations obtained by him from the Peguam Syarie;
(b)
to enquire into the stocks, shares, other securities or documents of title held by the Peguam Syarie on behalf of his clients; or
(c)
to consider whether the books of account of the Peguam Syarie have been properly written up in accordance with the
Syarie
Legal
Profession
(Federal
Territories)
(Account of Peguam Syarie) Rules 2023, at any time other than the time at which his examination of those books and accounts takes place.
(5)
If after making an examination in accordance with this rule, it appears to the accountant that there is evidence that the
Syarie
Legal
Profession
(Federal Territories) (Account of Peguam Syarie) Rules 2023 have not been complied with, he shall make such further examination as he considers necessary in order to complete his report with or without qualification.
Form of accountant’s report