Jamal, Amin & Partners

On 2 April 2021, JAP appealed to the SC against the sanctions imposed by the AOB. The SC dismissed the appeal and affirmed the decisions made by AOB. The prohibitions to accept and audit any PIE or schedule fund imposed in respect of the breach of MIA By-Laws and relevant ISA requirements take effect concurrently from 30 June 2021. and breach 1:(a) penalty of rm400,000;(b) prohibition from accepting any pie or schedule fund for a period of 12 months;(c) prohibition from auditing financial statements of any pie or schedule fund for a period of 12 months; and breach 2:(a) penalty of rm150,000;(b) prohibition from accepting any pie or schedule fund for a period of 12 months;(c) prohibition from auditing financial statements of any pie or schedule fund for a period of 12 months.

Breach 1: Failure to comply with Malaysian Institute of Accountants (“MIA”) By-Laws on Professional Ethics, Conduct and Practice (“MIA By-Laws”)JAP failed to comply with paragraph R601.6 of the MIA By-Laws which prohibits an audit firm or its audit partner from providing accounting and book keeping services to its audit client. Findings revealed that JAP, the audit firm responsible for the audit of 5 Public Interest Entities (PIEs), had provided prohibited services such as preparing financial statements / consolidated financial statements to these PIEs and its subsidiaries. The non-compliance of paragraph R601.6 of MIA By-Laws (ethical standards) is a serious offence as it undermines auditor’s independence and poses a self-review threat. Breach 2: Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”) in the performance of an audit of a PIEJAP failed to ensure that the engagement partner, Ahmad Hilmy Bin Johari, performed sufficient audit procedures and obtained sufficient audit evidence to support the conclusions reached in the area of fixed deposits, share capital and other reserves, provision for defect liabilities, revenue and cost of sales and group consolidation. In most instances, the audit evidences in the audit file are either incomplete or inadequate to support the audit work performed, the basis of judgement applied and the conclusions reached.

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

sc.com.my