Ong Kong Lai

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 RM35,000.00 pursuant to Section 31Z(2)(h) of the SCMA.

Failure to comply with relevant requirements of the International Standards of Auditing (“ISA”).The AOB found numerous audit deficiencies in the audit of the PIE where the subsidiaries operate in a foreign country. Among others, the audit deficiencies relate to the existence, accuracy and valuation of: capital work in progress; cash and bank balances; and other receivables. In this aspect, the AOB noted issues concerning the reliability of documents and the audit team’s control over confirmation procedures where requests were made and received through the management of the PIE.

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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