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AOB's Sanctions
  • 2024 Sanctions
    No Nature of Misconduct Auditor Brief Description of Misconduct Action Taken Date of AOB's Action
    1. 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. Nexia SSY PLT (AF 2009) (“Nexia”)

    Failure to comply with relevant requirements of the International Standards on Auditing (ISA) and International Standard of Quality Control (“ISQC”) 1 in the engagement review of a public interest entity (PIE)

    Nexia was reprimanded for the quality of the engagement performance (refer to actions against Michelle Yong Voon Sze and Jayapalasingam A/L Kandiah) and non-compliance with the relevant requirements on ISQC 1, specifically on file assembly and audit documentation.

    		 Reprimand 5 February 2024
    2. 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. Michelle Yong Voon Sze (“Michelle”) of Nexia SSY PLT (AF 2009) is the engagement partner for the audit of a Public Interest Entity (“PIE”) for the financial period ended 30 June 2021.

    Failure to comply with relevant requirements of the International Standards on Auditing (ISA)

    Michelle has failed to perform sufficient audit procedures and obtain sufficient audit evidence to support the basis for the qualified opinion in the auditors’ report.

    The qualification related to certain agreements entered into by the PIE. Michelle failed to evaluate whether the impact of these agreements was pervasive or otherwise in the financial statements of the PIE and assess its legality and enforceability.    		 Reprimand 5 February 2024
    3. 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. Jayapalasingam A/L Kandiah (“Jayapalasingam”) of Nexia SSY PLT (AF 2009) is the Engagement Quality Control Reviewer for the audit of a Public Interest Entity (“PIE”) for the financial period ended 30 June 2021.

    Failure to comply with relevant requirements of the International Standards of Auditing (ISA) in the performance of engagement quality control review process for the audit of a PIE

    Jayapalasingam failed to sufficiently review the selected audit documentation relating to significant judgements and significant risk areas of the engagement and basis of the conclusions reached, particularly the basis of the qualified opinion.

    		 Reprimand 5 February 2024
    4.

    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.

     

    Grant Thornton Malaysia PLT (GTM)

    Failure to meet the quality objectives of the International Standards of Quality Management (ISQM) 1

    GTM failed to ensure that the firm’s partner comply with the requirements of the MIA-By-Law on the rotation of key audit partners.

    Consequently, the firm has failed to meet the quality objective of ISQM 1 relating to the firm’s responsibility to ensure that the firm and its personnel comply with  relevant ethical requirements.

     

    Penalty of RM150,000

    Appeal

    On 11 June 2024, GTM appealed to the SC against the sanction imposed by the AOB.

    The SC dismissed the appeal and affirmed the decision made by AOB.

     

    5 June 2024

     
    5.

    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.

     

    Mohamad Heizrin bin Sukiman (Heizrin) of Grant Thornton Malaysia PLT was the engagement partner for the audit of public interest entity (PIE).

    Failure to comply with Malaysian Institute of Accountants’ (MIA) By-Laws (On Professional Ethics, Conduct and Practice) (MIA By-Laws)

    Heizrin has served as a key audit partner for 8 years on a PIE audit engagement. Consequently, he has breached the requirements of the MIA-By-Law which limits a key audit partner involvement to a maximum of 7 years.

    Penalty of RM37,500

    Appeal

    On 11 June 2024, Heizrin appealed to the SC against the sanction imposed by the AOB.

    The SC dismissed the appeal and affirmed the decision made by AOB.

    5 June 2024

     

     
  • 2023 Sanctions
    No Nature of Misconduct Auditor Brief Description of Misconduct Action Taken Date of AOB's Action
    1.

    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.

    Chia Kwong Chow (“Chia”) of K. C. Chia & Noor (AF 0922) is the engagement partner for the audit of a Public Interest Entity (“PIE”) for the financial period ended 30 June 2020.

    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:

    1. Failure to assess the appropriateness of capitalising a significant amount of consultation fees as deferred expenditure in accordance with MFRS 138 requirements;
    2. Failure to obtain sufficient appropriate audit evidence to verify a significant number of transactions with incomplete records of deferred expenditure;
    3. 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;
    4. 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.

     
    1. 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;

    2. 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

    3. Monetary penalty of RM50,000.00 pursuant to Section 31Z(2)(h) of the SCMA.

     

    		 10 May 2023
    2. 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.

    Tai Yoong Noor (“Tai”) of K. C. Chia & Noor (AF 0922) is the Engagement Quality Control Reviewer for the audit of a Public Interest Entity (“PIE”) for the financial period ended 30 June 2020.

    Failure to comply with relevant requirements of the International Standards of Auditing (“ISA”) in the performance of engagement quality control review process for the audit of a PIE.

    Tai failed to sufficiently review the selected audit documentation relating to significant judgements and significant risk areas of the engagement and basis of the conclusions reached in relation to:

    1. capitalisation of deferred expenditure; and
    2. reclassification of the deferred expenditure as Non-Current Assets Held for Sale.

     

    This has an effect on the overall audit quality as reflected in the material audit deficiencies discovered in the audit performed.

     
    1. 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;

    2. 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

    3. Monetary penalty of RM25,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		 10 May 2023
    3.

    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.

     

    Yean Wai Nye (“Yean”) of T. H. Kuan & Co. (AF 1216) is the engagement partner for the audit of a Public Interest Entity (“PIE”) for the financial year ended 31 March 2021.

     

     

    Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”)

    Yean failed to perform sufficient audit procedures and obtain sufficient audit evidence to support the conclusions reached on the valuation of goodwill.

    Yean failed to challenge the key assumptions used for the financial projections and assess the appropriateness of the expert’s work as audit evidence in auditing management’s impairment assessment of goodwill.

    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.

    Reprimand

    28 June 2023
  • 2022 Sanctions
    No Nature of Misconduct Auditor Brief Description of Misconduct Action Taken Date of AOB's Action
    1 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.

    Charles Lee King Long (“Lee”) of Kreston John & Gan (AF 0113) is the engagement partner for the audit of a public interest entity (“PIE”) for the financial year ended 31 December 2016.

    Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”) in the performance of an audit of a PIE

    Lee had wrongfully assessed the PIE’s reversion from Malaysian Financial Reporting Standards (MFRS) accounting framework to Financial Reporting Standards (FRS) for the financial year ended 31 December 2016.

    Lee had also failed to perform sufficient audit procedures and obtained sufficient audit evidence to support the conclusions reached on various elements of accounting estimates relating to property development costs. Other areas of non-compliance to the ISA include trade receivables, revenue and going concern.

    In many instances, the documentation in support of the conclusions reached by Lee were found to be either incomplete or inadequate.
    1. 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 Securities Commission Malaysia ('SC") for 12 months pursuant to Section 31Z(2)(f) of the SCMA;

    2. 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

    3. Monetary penalty of RM35,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		 3 August 2022
    2 Breach of Section 31Z(1)(b) of the ecurities 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.

    Gan Kim Guan (“Gan”) of Kreston John & Gan (AF 0113) is the engagement quality control reviewer for the audit of a public interest entity ("PIE") for the financial year ended 31 December 2016.

    Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”) in the performance of engagement quality control review process of an audit of a PIE

    Gan failed to sufficiently review the selected audit documentation relating to significant judgements and significant risk areas of the engagement and basis of the conclusions reached.

    This was apparent in the application of accounting framework, property development costs, trade receivables, revenue and going concern.

    (Please refer to actions against Charles Lee King Long, the engagement partner for the audit of the PIE)
    1. 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;

    2. 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

    3. Monetary penalty of RM17,500.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		 3 August 2022
    3. 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

    Ong & Wong Chartered Accountants (AF 0241) (“Ong & Wong”).

    Failure to comply with the relevant requirements of the International Standards of Auditing (“ISA”) and International Standard of Quality Control (“ISQC”) 1 in the engagement reviews of two Public Interest Entities (“PIE 1” & “PIE 2”)

    Ong & Wong had failed to ensure that the firm’s monitoring of the system of quality controls is operating effectively and its ability to detect the audit deficiencies as found in the two audits performed (ISQC 1 paragraph 48).

    Additionally, in the audit of PIE 2 where the subsidiaries operate in a foreign country, the AOB noted issues concerning the reliability of documents and the audit team’s control over the trade receivables confirmation where requests were made and received through the management of PIE 2 in contravention of the relevant ISA.

    In addition, there were numerous findings relating to records keeping which reflect poorly on Ong & Wong’s compliance with the relevant requirements on audit documentation (ISQC 1 Paragraph 45 and 46).
    1. 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;

    2. 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

    3. Monetary penalty of RM227,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		 7 September 2022 
    4. 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 Ong Koon Liang (“Koon Liang”) of Ong & Wong Chartered Accountants (AF 0241) is the engagement partner for the audit of a Public Interest Entity (“PIE”) for the financial year ended 31 January 2019. Failure to comply with relevant requirements of the International Standards of Auditing (“ISA”)

    The AOB found numerous audit deficiencies in the engagement reviews of the PIE which, among others, relate to:
    1. revenue recognition;
    2. accuracy and existence of trade receivables brought forward from previous year;
    3. unexplained differences in deposit placed for the development of land;
    4. nature and purpose of amount owing to director; and
    5. appropriateness and validity of consolidation adjustment.

    In many 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.
    1. 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;

    2. 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

    3. Monetary penalty of RM35,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		 7 September 2022  
    5.

    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.

    		 Ong Kong Lai (“Kong Lai”) of Ong & Wong Chartered Accountants (AF 0241) is the engagement partner for the audit of a Public Interest Entity (“PIE”) for the financial year ended 31 December 2019. 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:
    1. capital work in progress;
    2. cash and bank balances; and
    3. 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.
    1. 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;

    2. 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

    3. Monetary penalty of RM35,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		  7 September 2022 
    6. 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. Wong Cham Mew (“Cham Mew”) of Ong & Wong Chartered Accountants (AF 0241) is the Engagement Quality Control Reviewer for the audit of two Public Interest Entity (“PIE”). Failure to comply with relevant requirements of the International Standards of Auditing (“ISA”) in the performance of engagement quality control review process for the audit of two PIEs (“PIE 1” and “PIE 2”).

    Cham Mew failed to sufficiently review the selected audit documentation relating to significant judgements and significant risk areas of the engagement and basis of the conclusions reached in the area of revenue; trade receivables; deposits; amount owing to director; group consolidation (PIE 1); property, plant and equipment; cash and bank balances; and other receivables (PIE 2).

    This has an effect on the overall audit quality as reflected in the multiple audit deficiencies discovered in the two audits performed.
    1. 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;

    2. 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

    3. Monetary penalty of RM34,000.00 pursuant to Section 31Z(2)(h) of the SCMA.
    		  7 September 2022  
  • 2021 Sanctions
    No Nature of Misconduct Parties Involved Brief Description of Misconduct Action Taken Date of Action
    1 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. Jamal, Amin & Partners (“JAP”)

    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 PIE

    JAP 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 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.

    Appeal
    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.

    		 17 March 2021
    2 Breach of Section 31Z(1)(b) of the SCMA for failure to comply with AOB’s conditions of registration imposed by the AOB pursuant to Section 31O(3) of the SCMA. Ahmad Hilmy Bin Johari (“Hilmy”) of Jamal, Amin & Partners (“JAP”) is the engagement partner for the audit of a public interest entity (“PIE”) for the financial year ended 30 June 2019.

    Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”) in the performance of an audit of a public interest entity

    Hilmy failed to perform 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.

    Penalty of RM50,000.

    Appeal
    On 2 April 2021, Hilmy appealed to the SC against the sanctions imposed by the AOB.

    The SC dismissed the appeal and affirmed the AOB’s sanctions against Hilmy.

    Note
    AOB had also revoke the registration of Hilmy with the AOB for failure to comply with Malaysian Institute of Accountants (“MIA”) By-Laws on Professional Ethics, Conduct and Practice (“MIA By-Laws”).

    		 17 March 2021
    3 Breach of Section 31Z(1)(b) of the SCMA for failure to comply with AOB’s conditions of registration imposed by the AOB pursuant to Section 31O(3) of the SCMA. Sharinah Binti Mohamed Iqbal (“Sharinah”) of PKF is the engagement partner for the audit of a public interest entity (“PIE”) for the financial year ended 30 June 2019.

    Failure to comply with relevant requirements of the International Standards on Auditing (“ISA”) in the performance of an audit of a public interest entity

    Sharinah failed to perform sufficient audit procedures and obtained sufficient audit evidence to support the audit opinion in relation to the PIE’s ability to continue as a going concern, particularly on the ability of the PIE to repay its bank borrowings and fulfil its obligations as follows:

    (a) Failure to follow up on the status of the PIE’s bank loan and seek further audit evidence to support the conclusion with regards to PIE’s ability to repay its bank borrowings.

    (b) Failure to perform quantitative assessment (e.g. cash flow forecast) to assess the PIE’s tight cash flow position and its ability to fulfil all its commitments and obligations.

    In these instances, the audit evidences in the audit file are either non-existent, incomplete or inadequate to support the audit work performed, the basis of judgement applied and the conclusion reached.

    Reprimand

    		 22 July 2021
  • 2020 Sanctions
    No Nature of Misconduct Parties Involved Brief Description of Misconduct Action Taken Date of Action
    1 Breach the AOB’s recognition condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 UHY Hacker Young LLP

    The AOB sanctioned the Firm for the following:

    1. Breaching section 31N(1)(a) of the Securities Commission Malaysia Act when the Firm was reappointed as auditor of a public interest entity when its recognition with the AOB had expired (First Breach); and
    2. Failing to inform the AOB within 10 working days when one of the AOB recognised partner retired and the Firm had only two (2) partners recognised with the AOB from 1 December 2017 to 7 May 2018, which was less than the minimum requirement of three (3) partners for recognition with the AOB (Second Breach).
    		 Monetary Penalty of RM125,000

    Appeal
    On 27 February 2020, the Firm appealed to the SC on the sanction.

    The SC on 15 May 2020 set aside the First Breach and affirmed the Second Breach. The monetary penalty was substituted to RM75,000.    		 29 January 2020
    2 Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 RSL PLT (AF 0071)

    With effect from 10 December 2020, RSL PLT (AF 0071) is known as LTTH PLT (AF 0071) (“the Firm”).

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit the Firm from accepting any public interest entity or schedule fund as its client 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 Securities Commission for 12 months;
    2. Prohibit the Firm 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 Commission for 12 months; and
    3. Imposed a monetary penalty of RM175,000.00.


    Appeal
    On 7 July 2020, the Firm appealed to the SC on the AOB’s decision.

    On 06 October 2020, the, the SC dismissed the appeal and affirmed the decision made by the AOB.

    Judicial Review
    On 26 October 2020, the Firm filed an application to the High Court for Judicial Review to inter alia set aside/quash the AOB’s Decision and the SC’s Appeal Decision.

    On 29 December 2020, the High Court granted an interim stay of the sanctions imposed on the Firm.

    On 26 October 2021, the High Court ruled in favour of the AOB/SC and dismissed the Firm’s Judicial Review Application.

    With the High Court’s decision, the sanctions will take effect from 26 October 2021.

    		 9 June 2020
    3 Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. Lim Lip Chin (“LLC”) of RSL  PLT (AF 0071) was the engagement partner for the audit of a public interest entity for the financial year ended 31 March 2018.

    With effect from 10 December 2020, RSL PLT (AF 0071) is known as LTTH PLT (AF 0071).

         		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit LLC from accepting any public interest entity or schedule fund as client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission for 12 months;
    2. Prohibit LLC from auditing financial statements of a public interest entity or schedule fund or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for 12 months; and
    3. Imposed monetary penalty of RM44,000.00.


    Appeal
    On 7 July 2020, LLC appealed to the SC on the AOB’s decision. On 06 October 2020, the SC dismissed the appeal and affirmed the decision made by the AOB.

    Judicial Review
    On 26 October 2020, LLC filed an application to the High Court for Judicial Review to inter alia set aside/quash the AOB’s Decision and the SC’s Appeal Decision.

    On 29 December 2020, the High Court granted an interim stay of the sanctions imposed on LLC.

    On 26 October 2021, the High Court ruled in favour of the AOB/SC and dismissed LLC’s Judicial Review Application.

    With the High Court’s decision, the sanctions will take effect from 26 October 2021.

    		 9 June 2020
    4 Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 . Lim Sang Chee (“LSC”) of RSL  PLT (AF 0071) was the engagement quality control reviewer for the audit of a public interest entity for the financial year ended 31 March 2018.

    With effect from 10 December 2020, RSL PLT (AF 0071) is known as LTTH PLT (AF 0071).

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit LSC from accepting any public interest entity or schedule fund as client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission for 12 months; and
    2. Prohibit LSC from auditing financial statements of a public interest entity or schedule fund or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for 12 months.

     

    Appeal
    On 7 July 2020, LSC appealed to the SC on the AOB’s decision. On 06 October 2020, the SC dismissed the appeal and affirmed the decision made by the AOB.

    Judicial Review
    On 26 October 2020, LSC filed an application to the High Court for Judicial Review to inter alia set aside/quash the AOB’s Decision and the SC’s Appeal Decision.

    On 29 December 2020, the High Court granted an interim stay of the sanctions imposed on LSC.

    On 26 October 2021, the High Court ruled in favour of the AOB/SC and dismissed LSC’s Judicial Review Application. 

    With the High Court’s decision, the sanctions will take effect from 26 October 2021.

    		 9 June 2020
    5 Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. Muhamad Hafiz Bin Che Yusof of Morison AAC PLT was the engagement partner for the audit of a public interest entity for the financial year ended 31 July 2016.

    Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity which include:

    • Failure to design and perform audit procedures involving audit of components of the PIE.Insufficient audit procedures performed on, among others, going concern assumption, construction contracts, trade receivables and amount owing by associate company.
    1. Imposed monetary penalty of RM50,000.00.
    		 21 October 2020
    6 Breach of Section 31Z(1) 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. Sandra Segaran a/l Muniandy @ Krishnan (“Sandra”), partner of Ernst & Young PLT responsible for the audit engagement of a public interest entity for the financial year ended 31 December 2018. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.

    The AOB has earlier imposed RM63,000 penalty on Sandra on 10 December 2020.

    Following his appeal to vary the decision of the AOB on 11 January 2021, the SC reduced the penalty to RM47,500 on 8 April 2021.

    		 10 December 2020
  • 2019 Sanctions
    No Nature of Misconduct Parties Involved Brief Description of Misconduct Action Taken Date of Action
    1. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. UHY (AF 1411) ("Firm") Failure to comply with certain requirements of the approved standards on auditing in Malaysia, namely the International Standards on Quality Control and the By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants.
    1. Monetary penalty of RM298,000.00;
    2. Other than the Firm's existing public interest entity ("PIE") clients, the Firm is prohibited from accepting any PIE or schedule fund as its clients or prepare reports in relation to financial information as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for a period of 12 months; and
    3. Provide a written undertaking to the AOB on the following:
      a) Assess and implement measures to ensure that the Firm's system of quality control is relevant, adequate and operating effectively to monitor and address compliance with audit partner rotation requirements, including:
      i. Assessment of the capacity required by the Firm to comply with the audit partner rotation requirement; and
      ii. Building capacity within the Firm.

      b) Report to the AOB within 9 months on the result of the above assessment and implementation of the measures identified.
    		 5 April 2019
    2. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    Chan Jee Peng ("CJP"), partner of UHY.

    CJP was the engagement partner in the audit of a PIE for the financial period ended 31 March 2015.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a PIE. Monetary penalty of RM44,000.

     

     
    3. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 . Chengco PLT (AF 0886) ("Chengco") Failure to comply with relevant requirements of the approved standards on auditing in Malaysia, namely the International Standards on Auditing as adopted by the Malaysian Institute of Accountants.
    1. Prohibit Chengco from accepting any public interest entity or schedule fund as its clients for 12 months;
    2. Prohibit Chengco from auditing financial statements of a public interest entity or schedule fund for 12 months; and
    3. Imposed monetary penalty of RM175,000.00.


    On 30 May 2019, Chengco appealed to the SC on the AOB's decision.

    The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 6 August 2019.

    		 2 May 2019

     
    4.

    Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA).

    Hong Thuan Boon (HTB) of Chengco 
    HTB was the engagement partner for the audit of a public interest entity for the financial year ended 31 December 2017.

    Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit HTB from accepting any public interest entity or schedule fund as clients for 12 months;
    2. Prohibit HTB from auditing financial statements of a public interest entity or schedule fund for 12 months; and
    3. Imposed monetary penalty of RM57,000.00.


    On 30 May 2019, HTB appealed to the SC on the AOB's decision.

    The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 6 August 2019.
    5.

    Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    Liew Kwai Choy (LKC) of Chengco
    LKC was the Engagement Quality Control Reviewer  for the audit of a public interest entity for the financial period ended 31 December 2017.

    Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit the auditor from accepting any public interest entity or schedule fund as clients for 12 months; and
    2. Prohibit the auditor from auditing financial statements of a public interest entity or schedule fund for 12 months.


    On 30 May 2019, LKC appealed to the SC on the AOB's decision.

    The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 6 August 2019.
    6.

    Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    Yap Peng Boon (YBP) of Chengco
    YPB was the engagement partner for the audit of a public interest entity for the financial year ended 31 December 2014.

    Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Imposed monetary penalty of RM44,000.00.


    On 30 May 2019, YPB appealed to the SC on the AOB's decision.

    The SC dismissed the appeal and affirmed the decision made by the AOB.
    7. Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. Andrew Heng of Baker Tilly Monteiro Heng PLT (AF 0117) was the Engagement Partner for the audit of a public interest entity (PIE) for the financial year ended 31 December 2014

    Failure to comply with relevant requirements of the approved standards on auditing in Malaysia, namely the International Standards on Auditing as adopted by the Malaysian Institute of Accountants.

    As the engagement partner for the audit of a PIE, Andrew Heng had failed to perform sufficient audit procedures and obtain sufficient audit evidence to support the conclusions reached on the existence of cash and bank balances and bank overdrafts as at 31 December 2014. For the financial year ended 31 December 2014, the PIE adopted an early cut-off date of 20 December 2014 for its recording of bank transactions.

    Reprimand

    Note:

    On 30 August 2019, Andrew Heng appealed to the SC on the AOB’s decision.

    On 12 November 2019, the SC dismissed the appeal and affirmed the decision made by the AOB.

    On 12 November 2019, Andrew Heng subsequently filed an application for Judicial Review to inter alia set aside/quash the AOB’s Decision and the SC’s Appeal Decision.

    On 25 August 2020, the High Court ruled in favour of the AOB/SC and dismissed the Andrew Heng’s Judicial Review Application. Andrew Heng subsequently appealed to the Court of Appeal.

    On 28 October 2021, the Court of Appeal ruled in favour of the SC and dismissed Andrew Heng’s appeal against the High Court’s decision dismissing his Judicial Review application.

     

    		 2 August 2019
    8. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 . Afrizan Tarmili Khairul Azhar (AF 1300)(“AFTAAS”) Failure to comply with certain requirements of the approved standards on auditing in Malaysia, namely the International Standards on Quality Control as adopted by the Malaysian Institute of Accountants.
    1. Prohibit AFTAAS from accepting any public interest entity or schedule fund as its client 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 Securities Commission for 12 months;
    2. Prohibit AFTAAS 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 Commission for 12 months; and
    3. Imposed a monetary penalty of RM455,000.00.


    Appeal
    On 25 September 2019, AFTAAS appealed to the SC on the AOB's decision.

    The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 25 November 2019.

    Judicial Review
    AFTAAS filed an application for Judicial Review to the High Court against the SC and AOB's decisions. On 10 August 2020, the High Court quashed the sanctions imposed against AFTAAS. The SC has filed an appeal to the Court of Appeal to set aside the High Court's decision.

    On 10 December 2021, the Court of Appeal ruled in favour of the SC and set aside the High Court's decision on 10 August 2020 to quash the sanctions imposed against AFTAAS. 

    Following the decision of the Court of Appeal, AFTAAS has made the following applications :

    • On 31 December 2021 , AFTAAS applied to the Court of Appeal for a stay of execution of the AOB’s sanctions until the disposal of their leave application to the Federal Court. The Court of Appeal granted a stay of execution of AOB’s sanctions on 11 February 2022.

    • On 7 January 2022, AFTAAS applied to the Federal Court for leave to appeal against the Court of Appeal’s decision.

    • On 20 January 2022, AFTAAS made an ex-parte application to the High Court for leave to file Judicial Review concerning the effective date of the sanctions imposed by the AOB (“2nd JR”) and an interim stay of among others, the sanctions imposed. The leave application and the interim stay were granted by the High Court on 27 January 2022.

    The 2nd JR by AFTAAS has been struck out by the High Court on 29 June 2022. On 28 July 2022, AFTAAS has filed an appeal to the Court of Appeal against the High Court’s decision. On 14 November 2022,  AFTAAS has filed a Notice of Discontinuance to withdraw their appeal to the Court of Appeal in relation to the 2nd JR.

    On 17 August 2022, the Federal Court ruled in favour of the SC and dismissed the AFTAAS leave application. Court of Appeal stay order on the AOB’s sanctions is also lapsed.

    Following the decision of the Federal Court, the AOB’s sanctions imposed on AFTAAS will take effect from 17 August 2022.

    		 28 August 2019
    9. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. Datuk Mohd Afrizan Bin Husain (“MAH”) of AFTAAS was the engagement partner for the audit of a public interest entity for the financial year ended 30 June 2018 and the engagement quality control reviewer for the audit of a public interest entity for the financial year ended 31 December 2017. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit MAH from accepting any public interest entity or schedule fund as client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission for 12 months;
    2. Prohibit MAH from auditing financial statements of a public interest entity or schedule fund or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for 12 months; and
      3. Imposed monetary penalty of RM88,000.00.


    Appeal
    On 25 September 2019, MAH appealed to the SC on the AOB's decision. The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 25 November 2019.

    Judicial Review
    MAH filed an application for Judicial Review to the High Court against the SC and AOB's decisions. On 10 August 2020, the High Court quashed the sanctions imposed against MAH. The SC has filed an appeal to the Court of Appeal to set aside the High Court's decision.

    On 10 December 2021, the Court of Appeal ruled in favour of the SC and set aside the High Court's decision on 10 August 2020 to quash the sanctions imposed against AFTAAS. 

    Following the decision of the Court of Appeal, MAH has made the following applications :

    • On 31 December 2021 , MAH applied to the Court of Appeal for a stay of execution of the AOB’s sanctions until the disposal of their leave application to the Federal Court. The Court of Appeal granted a stay of execution of AOB’s sanctions on 11 February 2022.

    • On 7 January 2022, MAH applied to the Federal Court for leave to appeal against the Court of Appeal’s decision.

    • On 20 January 2022, MAH made an ex-parte application to the High Court for leave to file Judicial Review concerning the effective date of the sanctions imposed by the AOB (“2nd JR”) and an interim stay of among others, the sanctions imposed. The leave application and the interim stay were granted by the High Court on 27 January 2022.

    The 2nd JR by MAH has been struck out by the High Court on 29 June 2022. On 28 July 2022, MAH has filed an appeal to the Court of Appeal against the High Court’s decision. On 14 November 2022,  MAH has filed a Notice of Discontinuance to withdraw the appeal to the Court of Appeal in relation to the 2nd JR.  

    On 17 August 2022, the Federal Court ruled in favour of the SC and dismissed MAH leave application. Court of Appeal stay order on the AOB’s sanctions is also lapsed.

    Following the decision of the Federal Court, the AOB’s sanctions imposed on MAH will take effect from 17 August 2022.

     

    		 28 August 2019
    10. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 . Haji Tamili Dulah Kusni ("TDK") of AFTAAS was the engagement quality control reviewer for the audit of a public interest entity for the financial year ended 30 June 2018. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit TDK from accepting any public interest entity or schedule fund as client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission for 12 months; and
    2. Prohibit TDK from auditing financial statements of a public interest entity or schedule fund or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for 12 months.


    Appeal
    On 25 September 2019, TDK appealed to the SC on the AOB's decision. The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 25 November 2019.

    Judicial Review
    TDK filed an application for Judicial Review to the High Court against the SC and AOB's decisions. On 10 August 2020, the High Court quashed the sanctions imposed against TDK. The SC has filed an appeal to the Court of Appeal to set aside the High Court's decision.

    On 10 December 2021, the Court of Appeal ruled in favour of the SC and set aside the High Court's decision on 10 August 2020 to quash the sanctions imposed against TDK. 

    Following the decision of the Court of Appeal, TDK has made the following applications :

    • On 31 December 2021 , TDK applied to the Court of Appeal for a stay of execution of the AOB’s sanctions until the disposal of their leave application to the Federal Court. The Court of Appeal granted a stay of execution of AOB’s sanctions on 11 February 2022.

    • On 7 January 2022, TDK applied to the Federal Court for leave to appeal against the Court of Appeal’s decision.

    On 17 August 2022, the Federal Court ruled in favour of the SC and dismissed TDK leave application. Court of Appeal stay order on the AOB’s sanctions is also lapsed.

    Following the decision of the Federal Court, the AOB’s sanctions imposed on TDK will take effect from 17 August 2022.

    		 28 August 2019
    11. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 . Khairul Azahar Bin Ariffin ("KAA") of AFTAAS was the engagement partner for the audit of a public interest entity for the financial year ended 31 December 2017. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public interest entity.
    1. Prohibit KAA from accepting any public interest entity or schedule fund as client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission for 12 months;
    2. Prohibit KAA from auditing financial statements of a public interest entity or schedule fund or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Securities Commission Malaysia for 12 months; and
    3. Imposed monetary penalty of RM88,000.00.


    Appeal
    On 25 September 2019, KAA appealed to the SC on the AOB's decision. The SC dismissed the appeal and affirmed the decision made by the AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for 12 months will take effect from 25 November 2019.

    Judicial Review
    KAA filed an application for Judicial Review to the High Court against the SC and AOB's decisions. On 10 August 2020, the High Court quashed the sanctions imposed against KAA. The SC has filed an appeal to the Court of Appeal to set aside the High Court's decision.

    On 10 December 2021, the Court of Appeal ruled in favour of the SC and set aside the High Court's decision on 10 August 2020 to quash the sanctions imposed against KAA. 


    Following the decision of the Court of Appeal, KAA has made the following applications :

    • On 31 December 2021 , KAA applied to the Court of Appeal for a stay of execution of the AOB’s sanctions until the disposal of their leave application to the Federal Court. The Court of Appeal granted a stay of execution of AOB’s sanctions on 11 February 2022.

    • On 7 January 2022, KAA applied to the Federal Court for leave to appeal against the Court of Appeal’s decision.

      

    On 17 August 2022, the Federal Court ruled in favour of the SC and dismissed KAA eave application. Court of Appeal stay order on the AOB’s sanctions is also lapsed.

    Following the decision of the Federal Court, the AOB’s sanctions imposed on KAA will take effect from 17 August 2022.

    		 28 August 2019
    12. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993. Huang Khean Yeong ("HKY") of Deloitte PLT (AF 0080) was the engagement partner for the audit of a public interest entity for the financial year ended 31 December 2016. Failure to comply with  relevant requirements of the approved standards on auditing in Malaysia, namely the  International Standards on Auditing as adopted by the Malaysian Institute of Accountants.
    1. Imposed monetary penalty of RM63,000.00.
    		 4 December 2019
  • 2018 Sanctions
    No Nature of Misconduct Parties Involved Brief Description of Misconduct Action Taken Date of Action
    1. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Elwyn Tang Boon Hiap of CHI-LLTC who was the engagement partner in the audit of a public listed entity for the financial year ended 30 April 2015. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of the public listed entity. Reprimand and monetary penalty of RM225,000

    On 26 January 2018, Elwyn Tang Boon Hiap appealed to the Securities Commission Malaysia (SC) on the quantum of the monetary penalty imposed by AOB.

    The SC rejected the appeal and affirmed the decision made by AOB.

    		 9 January 2018
    2. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Act Malaysia 1993 (SCMA). Sathiea Seelean A/L Manickam  of Morison Anuarul Azizan Chew

    Engagement partner in the audit of a public listed entity for the financial year ended 31 December 2011.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of the public listed entity. Reprimand

     
    3. Breach the AOB's registration condition imposed under Section 31O(3) of the SCMA. Tan Poh Ling, former partner of Morison Anuarul Azizan Chew

    Engagement partner in the audit of a public listed entity for the financial year ended 31 December 2012.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of the public listed entity. Reprimand
    4. Breach the AOB's registration condition imposed under Section 31O(3) of the SCMA. Chuah Soo Huat (CSH), former partner of PKF.

    CSH was the engagement partner in the audit of a public listed company for the financial year ended 31 December 2012.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public listed company. Reprimand 4 April 2018
    5. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Siew Boon Yeong & Associates (AF 0660) Failure to comply with  relevant requirements of the approved standards on auditing in Malaysia, namely the International Standards on Quality Control (ISQC 1) and International Standards on Auditing (ISA) as adopted by the Malaysian Institute of Accountants.
    1. Prohibited from auditing the financial statements of a PIE and schedule fund for a period of nine (9) months; and
    2. Monetary penalty of RM227,000.00.
    		 17 August 2018
    6. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Dato' Siew Boon Yeong of  Siew Boon Yeong & Associates

    Engagement partner in the audit of public listed entities (PIEs) for the financial years ended 31 December 2016, 31 January 2017 and 31 March 2017, respectively.

    		 Failure to comply with certain requirements of the ISA in discharging his professional duties in the performance of audits of PIEs.

     
    1. Prohibited from auditing the  financial statements of a PIE and schedule fund for a period of nine (9) months; and
    2. Monetary penalty of RM81,000.00

     
    7. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Lim Teik Ee
    former partner of Siew Boon Yeong & Associates

    Engagement Quality Control Reviewer (EQCR) in the audit of public listed entities for the financial years ended 31 December 2016, 31 January 2017 and 31 March 2017, respectively.

    		 Failure to comply with certain requirements of the ISA in discharging his professional duties as EQCR. (i) Prohibited from auditing the  financial statements of a PIE and schedule fund for a period of nine (9) months.
    8. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA).

    Gary Yong Yoon Shing of Nexia SSY (AF 002009)

    Engagement partner in the audit of a PIE for the financial year ended 31 December 2012.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public listed company. Reprimand 19 November 2018
    9. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA).

    Jason Sia Sze Wan of Nexia SSY.

    Engagement partner in the audit of a PIE for the financial year ended 31 December 2012.

    		 Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public listed company. Reprimand
    10. Breach the AOB's registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Lye Ghee Kang of CAS Malaysia PLT (AF 1476) who was the engagement partner in the audit of a PIE for the financial years ended 30 April 2017. Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public listed entity. Reprimand 4 December 2018
    11.

    Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    McMillan Woods Mea (AF 001995) (“MWM”)

    Failure to comply with  relevant requirements of the approved standards on auditing in Malaysia, namely the International Standards on Quality Control and International Standards on Auditing as adopted by the Malaysian Institute of Accountants.
    1. Prohibited MWM from accepting any public interest entity or schedule fund as its clients for a period of 12 months;
    2. Prohibited MWM from auditing the financial statements of a public interest entity or schedule fund for a period of 12 months; and
    3. Monetary penalty of RM123,000.00.

    On 14 December 2018, MWM appealed to the Securities Commission Malaysia on the period of prohibition and quantum of the monetary penalty imposed by AOB.

    The Securities Commission Malaysia rejected the appeal and affirmed the decision made by AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for a period of 12 months will take effect from 14 February 2019.

    		19 November 2018
    12.

    Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    Mea Fatt Leong (“MFL”) of   McMillan Woods Mea

    MFL was the engagement partner in the audit of a public listed company for the financial year ended 31 December 2016.

    Failure to comply with certain requirements of the International Standards on Auditing in the performance of an audit of a public listed company.

     
    1. Prohibited MFL from accepting any public interest entity or schedule fund as clients for a period of 12 months;
    2. Prohibited MFL from auditing the financial statements of a public interest entity or schedule fund for a period of 12 months; and
    3. Monetary penalty of RM44,000.00.

    On 14 December 2018, MFL appealed to the Securities Commission Malaysia on the period of prohibition and quantum of the monetary penalty imposed by AOB.

    The Securities Commission Malaysia rejected the appeal and affirmed the decision made by AOB.

    The prohibitions to accept and audit any public interest entity or schedule fund for a period of 12 months will take effect from 14 February 2019.

    13.

    Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993.

    Wong Joo Hua (“WJH”) of McMillan Woods Mea

    WJH was the Engagement Quality Control Reviewer (EQCR) in the audit of a public listed company for the financial year ended 31 December 2016.

    Failure to comply with certain requirements of the International Standards on Auditing in discharging his professional duties as an EQCR.   
    1. Prohibited WJH from accepting any public interest entity or schedule fund as clients for a period of 12 months; and
    2. Prohibited WJH from auditing the financial statements of a public interest entity or schedule fund for a period of 12 months.

     
  • 2017 Sanctions

    No

    Nature of Misconduct

    Parties Involved

    Brief Description of Misconduct

    Action Taken

    Date of Action
    1. Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Adam Selamat bin Musa
    Partner of Adam & Co who was the engagement partner in the audit of a public listed entity for the financial year ended 31 December 2013.    		 Failure to comply with certain requirements of the International Standards on Auditing in discharging his professional duties in the performance of an audit of the public listed entity. Monetary penalty of RM75,000

    On 13 September 2017, Adam Selamat bin Musa appealed to the Commission. The appeal was solely on the quantum of the monetary penalty imposed by the AOB.

    On 2 November 2017, the Commission rejected the appeal and affirmed the decision made by AOB.

    11 September 2017
  • 2015 Sanctions

    No.

    Nature of Misconduct

    Parties Involved

    Brief Description of Misconduct

    Action Taken

    Date of Action
    1. Breach the AOB’s registration condition imposed under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA). Lee Kok Wai
    Partner of Crowe Horwath who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 October 2010.    		 Failure to comply with certain requirements of the International Standards on Auditing (Pre Clarified ISA) in discharging his professional duties in the performance of an audit of the PIE.
    • (i) Reprimand; and
    • (ii) Penalty of RM50,000

    On 16 January 2015, Lee Kok Wai appealed to the Commission against the above decision made by the AOB

    On 29 February 2016, the Commission  decided to reject the appeal.

    16 January 2015
  • 2014 Sanctions

    No.

    Nature of Misconduct

    Parties Involved

    Brief Description of Misconduct

    Action Taken

    Date of Action
    1. Breach the AOB's registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Chan Kee Hwa
    Partner of Khoo Wong & Chan
    who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 March 2011.    		 Failure to comply with certain requirements of the International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE.

    Reprimand

    18 February 2014
    2. Breach the AOB's registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Lim Kok Beng
    Partner of Ong Boon Bah & Co who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 30 June 2011.    		 Failure to comply with certain requirements of the International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE.
    • Reprimand; and
    • Penalty of RM10,000.

    		 18 February 2014
    3. Breach the AOB's registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Wong Weng Foo & Co. (the Audit Firm) (i) Failure to comply with section 31N (1) of the SCA which requires audit firms to be registered with AOB when acting as auditor; and(ii) Failure to comply with the By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants requirement which relates to independence of an auditor.
    • Prohibit the Audit Firm from accepting any PIE as client for a period of 12 months; and
    • Monetary penalty of RM30,000.

    On 05 June 2014, the Audit Firm appealed to the Commission against the above decision made by the Audit Oversight Board. On 30 June 2014, the Commission decided to reject the appeal.

    The prohibition on the Audit Firm to accept any PIE as its clients for a period of 12 months will take effect from 30 June 2014.

    		 30 May 2014
  • 2013 Sanctions

    No.

    Nature of Misconduct

    Parties Involved

    Brief Description of Misconduct

    Action Taken

    Date of Action
    1. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Tan Chin Huat
    Partner of STYL Associates who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 December 2010.    		 Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE. Reprimand 19 August 2013
    2. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Yeo Eng Hui
    Partner of STYL Associates who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 December 2010.    		 Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE. Reprimand 19 August 2013
    3. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Wong Shan Ty
    Partner of Ong & Wong who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 30 September 2011.    		 Failure to comply with certain requirements of International Standards on Auditing in discharging her professional duties in the performance of an audit of the PIE. Reprimand
    • On 13 September 2013, Wong Shan Ty appealed to the Commission against the above decision made by the Audit Oversight Board. On 1 November 2013, the Commission decided to reject the appeal.
    		 19 August 2013
    4. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Cheah Choong Keong
    Partner of C.K. Cheah & Co. who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 30 September 2011.    		 (i) Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE; and

    (ii) Failure to comply with certain requirements of the By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants which relate to independence of an auditor in discharging his professional duties.

    		 (i) Reprimand; and

    (ii) Penalty of RM5,000.

    • On 12 September 2013, Cheah Choong Keong appealed to the Commission against the above decision made by the Audit Oversight Board. On 1 November 2013, the Commission decided to reject the appeal.
    		 19 August 2013
    5. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Dr. Abd Halim Bin Husin
    Partner of Wong Weng Foo & Co. who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 30 June 2011.    		 Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE. Reprimand 28 August 2013
    6. Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA). Mohd. Neezal bin Md. Noordin Partner of AljeffriDean who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 March 2011. (i) Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE; and

    (ii) Failure to comply with certain requirements of the By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants which relate to independence of an auditor in discharging his professional duties.

    		 (i) Reprimand; and

    (ii) Penalty of RM10,000.

    		 28 August 2013
  • 2012 Sanctions
    No Nature of Breach Parties Involved Brief Description of Breach Action Taken Date of Action
    1.

    Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA).

    Alvin, Tee Guan Pian
    (Partner of UHY who was the engagement partner in the audit of a public interest entity for the financial year ended 31 July 2010)

    Failure to comply with the relevant requirements of the recognised auditing standards in Malaysia i.e. the International Standards on Auditing.

    Reprimand

    • On 9 August 2012, Alvin Tee Guan Pian appealed to the Commission against the above decision made by the Audit Oversight Board. On 4 September 2012, the Commission decided that the appeal be rejected.
    		 12 July 2012
    2.

    Breach the AOB’s registration condition imposed under Section 31O(4) of the Securities Commission Act 1993 (SCA).

    		 Liew Tip Chan(Sole proprietor of T.C. Liew & Co. who was the engagement partner in the audit of a public interest entity (PIE) for the financial year ended 31 January 2011.)

    (i) Failure to comply with the By- Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants requirements which relate to independence of an auditor in discharging his professional duties; and

    (ii) Failure to comply with certain requirements of International Standards on Auditing in discharging his professional duties in the performance of an audit of the PIE.

     

    (i) Reprimand; and

    (ii) Penalty of RM5,000.

    		 7 November 2012
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