PETALING JAYA: The Securities Commission Malaysia’s Audit Oversight Board (AOB) has prohibited Charles Lee King Long and Gan Kim Guan, partners of Kreston John & Gan, from accepting and auditing any public interest entities (PIE) or scheduling funds for 12 months due to their failure to comply with the International Standards on Auditing.
The AOB has also imposed fines of RM35,000 on Lee and RM17,500 on Gan.
According to the AOB, Lee had wrongfully assessed the PIE’s reversion from Malaysian Financial Reporting Standards (MFRS) accounting framework to Financial Reporting Standards for the financial year ended Dec 31, 2016.
“The reversion was found to be inappropriate and inconsistent with the implementation of MFRS by the Malaysian Accounting Standards Board,” AOB said in a statement today.
Additionally, Lee had failed to perform audit procedures on accounting estimates relating to property development costs nor obtain appropriate audit evidence to support the conclusions reached.
“In many instances, the documentation in support of the conclusions reached by Lee were found to be either incomplete or inadequate,” it added.
Meanwhile, Gan, the engagement quality control reviewer (EQCR), had failed to sufficiently review the selected audit documentation relating to judgements and risk areas of the engagement and the basis of the conclusions reached in the application of accounting framework, property development costs, trade receivables, revenue and going concern.
“The AOB views this seriously and reiterates the crucial role of EQCR in safeguarding the integrity of audit quality and control process,” it said.
