Auditor independence important – CMDA

Wednesday, November 4th, 2009

Capital Market Development Authority (CMDA) has said that auditor independence was important for the development of capital market.

This was noted in the scheduled meetings held between officials of CMDA and international audit firms. Discussions were also held in these meetings about ways to main auditor independence when auditing public companies.

International firms such as Ernest and Young, K.P.M.G and P.W.C shared information on the policies and guidelines practiced in those firms on maintaining auditor independence. They also noted that the audit practice in Maldives where auditor position rotates after a specified period was a very good policy but that it would be a challenge to maintain auditor independence when small companies are being audited in Maldives.

Discussions were also held on the difficulties faced due to the absence of standard setting professional body besides an auditor general.

CMDA was established on 26 January 2006 and is responsible for developing and regulating the capital market in the Maldives. It has statutory powers to license securities market intermediaries including brokers, dealers, investment advisers, as well as stock exchanges and central depositories.

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