2014 Sanction

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

Note: Pursuant to Section 31ZB of the Securities Commission Malaysia Act 1993, all sanctions imposed by the AOB are subject to an appeal to the Commission within thirty (30) days from the date on which such person is notified of the decision.