Heizrin had breached the key requirement of the Malaysian Institute of Accountants’ By-Laws (On Professional Ethics, Conduct and Practice) (MIA By-Laws) during the transition period of the revised MIA By-Laws.

Heizrin was an engagement partner and engagement quality reviewer on the audit of a PIE from 2013 to 2017, after which he was required to serve a minimum cooling off period of three consecutive years. But he failed to do so and as a result was involved in the audit of the PIE for more than seven years.

MIA By-Laws stipulate that an audit engagement partner shall not be involved in an audit engagement for a cumulative period of more than seven years to ensure audit independence.

The AOB views the breach seriously as auditors’ independence and compliance with ethical standards are fundamental requirements for the audit profession.

GTM failed to meet the quality objectives of the International Standards of Quality Management (ISQM) 1 as adopted by the MIA, specifically on non-compliance with relevant ethical requirements, including those related to independence (i.e. MIA By-Laws).

GTM and Heizrin had appealed to the SC against the AOB’s enforcement action. The SC heard the appeal and after due process, affirmed the AOB’s decision.