NEW ERA OF ASSURANCE AND ETHICS STANDARDS FOR SUSTAINABILITY IN MALAYSIA

 

_{Malaysian Instituts of Accounts (MIA)}
 

KUALA LUMPUR, Oct 6 (Bernama) -- The Malaysian Institute of Accountants (MIA) has approved the adoption of the International Standard on Sustainability Assurance (ISSA) 5000 and the International Ethics Standards for Sustainability Assurance (IESSA), taking a significant step towards enhancing the credibility and reliability of sustainability reporting and assurance in Malaysia.
 
As sustainability information becomes increasingly integral to business decisions and takes prominence in corporate reporting, there is also a growing demand for high-quality and reliable assurance over this information. The new standards provide a robust framework to guide sustainability assurance practitioners in upholding public trust and aims to equip practitioners in addressing ethical issues in relation to sustainability.
 
Issued by the International Auditing and Assurance Standards Board (IAASB), ISSA 5000, General Requirements for Sustainability Assurance Engagements, is a new global sustainability assurance standard designed to strengthen the global sustainability disclosure ecosystem. The ISSA 5000 is applicable across various sustainability topics and frameworks and is designed for use by both professional accountants and non-accountant assurance practitioners.
 
The ISSA 5000 is effective for assurance engagements on sustainability information reported for periods beginning on or after 15 December 2026 or as at a specific date on or after 15 December 2026, with earlier application permitted.

The IESSA, issued by the IESBA, are the landmark global sustainability ethics standards providing an ethical framework for assurance on sustainability-related information.

The IESSA is slated to come into effect in Malaysia for sustainability assurance engagements on sustainability information for periods beginning on or after 15 December 2026, with the exception of Sections 5405 and 5406 of the standards which will become effective from 1 July 2028. Earlier adoption of the standards is permitted and encouraged.
 
When used alongside the sustainability-related ethics and independence standards issued by the International Ethics Standards Board for Accountants (IESBA), ISSA 5000 provides a unified global approach to address the growing demand for trustworthy sustainability information to support stakeholder decisions.
 
MIA President Dato’ Seri Dr Mohamad Zabidi Ahmad said, “High-quality and trustworthy sustainability information is critical in supporting investor confidence and stakeholder expectations as well as driving sustainable business practices. The adoption of these new ethics and assurance standards is both timely and essential for firms expanding into sustainability assurance. Taken together, the ISSA 5000 and IESSA are set to enhance assurance quality and garner public trust. MIA remains committed to supporting our members as they navigate the implementation of these standards.”

“ISSA 5000 sets a new global benchmark for sustainability assurance. It is flexible, scalable and built for all assurance providers. It delivers the trustworthy sustainability information demanded by stakeholders. With ISSA 5000, we are not just raising the bar for sustainability assurance in Malaysia, we are laying the trust foundation for a greener, more accountable future.” said Teoh Soo Hock, Chair of the MIA Auditing and Assurance Standards Board.

MIA Ethics Standards Board Chair Dr Veerinderjeet Singh added, “With the adoption of the IESSA, MIA is equipping the profession with ethical guidance in a progressively more complex assurance environment. The standards are designed not just for accountants but also for multidisciplinary teams involved in sustainability assurance engagements. It is our hope that these standards will serve as an ethical bedrock for these practitioners and provide clear guidance to firms providing sustainability assurance in Malaysia.”
 
This development is in congruence with the work of the Advisory Committee on Sustainability Reporting (ACSR), chaired by the Securities Commission Malaysia (SC), where a consultation paper was issued to seek public feedback on the proposed framework for sustainability assurance. The paper included proposals on oversight of sustainability assurance providers and the adoption of the ISSA 5000 and IESSA as the recognised international sustainability assurance standards, among other matters.
 
As the global focus on sustainability intensifies, the MIA urges all practitioners, firms and stakeholders to begin preparing for implementation and to embrace the ISSA 5000 and IESSA as the foundational standards for high-quality and ethical sustainability assurance in Malaysia.
 
The ISSA 5000 and updated MIA By-Laws incorporating the IESSA will be made available on the MIA website: www.mia.org.my.
 
NOTE TO EDITOR:
 
About the Malaysian Institute of Accountants (MIA)
Established under the Accountants Act 1967, MIA is the national accountancy body that regulates, develops, supports and enhances the integrity, status and interests of the profession in Malaysia. MIA accords the Chartered Accountant Malaysia or C.A. (M) designation. Working closely alongside businesses, MIA connects its membership to a wide range of information resources, events, professional development and networking opportunities. Presently, there are more than 40,000 members making their strides in businesses across all industries in Malaysia and around the world.
 
MIA’s international outlook and connections are reflected in its membership of regional and international professional organisations such as the International Federation of Accountants (IFAC) and the ASEAN Federation of Accountants (AFA). For more information on MIA, visit www.mia.org.my 

SOURCE: Malaysian Institute of Accountants (MIA)

FOR MORE INFORMATION, PLEASE CONTACT:
MIA STRATEGY COMMUNICATIONS & BRANDING
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Tel: +60122489534
Name: MOHD FAIZ OTHMAN
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Email: communications@mia.org.my 

--BERNAMA