Chia Kwong Chow

Prohibition from accepting any PIE or schedule fund as clients or preparing reports in relation to financial information of any PIE or schedule fund, as may be required under the securities laws or guidelines issued by the SC for 12 months pursuant to Section 31Z(2)(f) of the SCMA; Prohibition from auditing financial statements of a PIE or schedule fund or preparing reports in relation to financial information of a PIE or schedule fund, as may be required under the securities laws or guidelines issued by the SC for 12 months pursuant to Section 31Z(2)(g) of the SCMA; and Monetary penalty of RM50,000.00 pursuant to Section 31Z(2)(h) of the SCMA.

Failure to comply with relevant requirements of the International Standards of Auditing (“ISA”) and Malaysian Financial Reporting Standards (“MFRS”) The AOB found material audit deficiencies in the engagement review of the PIE which, among others, relate to: Failure to assess the appropriateness of capitalising a significant amount of consultation fees as deferred expenditure in accordance with MFRS 138 requirements; Failure to obtain sufficient appropriate audit evidence to verify a significant number of transactions with incomplete records of deferred expenditure; Failure to evaluate the competence, capabilities and objectivity of an expert, obtain an understanding of the work of an expert and evaluate the appropriateness of the expert’s work as audit evidence in accordance with ISA 500 requirements; Failure to assess the appropriateness of classifying the deferred expenditure as Non-Current Assets Held for Sale in accordance with MFRS 5 requirements. In these instances, the auditor had failed to ensure the sufficiency and appropriateness of the audit evidence obtained and the completeness of audit documentation in the audit file.

Breach of Section 31Z(1)(b) of the Securities Commission Malaysia Act 1993 (“SCMA”) for failure to comply with AOB’s conditions of registration imposed by the AOB pursuant to Section 31O(3) of the SCMA.

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