Kuala Lumpur , 12 August 2008
SC receives Baker Tilly Monteiro Heng’s special audit report on Oilcorp
Baker Tilly Monteiro Heng (BTMH) has submitted its report to the Securities Commission (SC) on 4 August 2008 in relation to the special audit of Oilcorp Berhad’s accounts for the years ended 31 December 2006 and 2007.
BTMH had earlier issued a disclaimer in Oilcorp’s 2007 audited accounts as it was not able to form a true and fair view of the contractual value of a project that was awarded to Oilcorp by Plant Biofuels Corporation Sdn Bhd (Project).
Following SC’s directive issued under section 320(3) of the Capital Markets and Services Act 2007, BTMH was required to ascertain the actual contractual value of the Project and verify the costs of the Project, as both the contractual value and costs would eventually determine the profitability of the Project.
Under this directive, Oilcorp was also required to give its full cooperation and access to information required by BTMH.
After reviewing all available information including BTMH’s latest report, the SC is of the view that there are still outstanding issues pertaining to the contract value, cost and hence the profitability of the Project, that would require further clarification. In addition, BTMH still maintains a disclaimer opinion on Oilcorp’s accounts for the financial year ended 31 December 2007.
As such, the SC has agreed to have Oilcorp’s accounts re-audited for the financial year ended 31 December 2007 by another auditor, who must determine, amongst others, all issues pertaining to the cost and hence the profitability of the Project.
Public listed companies (PLCs) and their auditors are strongly reminded to actively engage with one another to resolve any issues arising from an audit and ensure timely submission of accounts. In this regard, PLCs have the responsibility to provide auditors with all the information required by them to conduct the audit. Likewise, auditors are expected to work with the PLCS to form an opinion on whether the accounts of PLCs give a true and fair view of their financial position.