Audit Firm and Auditors Fined and Barred From Auditing for A Year

19 October 2020 | Kuala Lumpur

The Securities Commission Malaysia’s Audit Oversight Board (AOB) today announced that the audit firm, RSL PLT (RSL), and its partners are prohibited from accepting as clients and auditing public interest entities (PIEs) or schedule funds for a period of 12 months commencing from 1 November 2020.

The two partners involved are Lim Lip Chin and Lim Sang Chee. In addition to the prohibition, the AOB also imposed fines of RM175,000 on RSL and RM44,000 on Lim Lip Chin.

The firm and its partners were sanctioned by the AOB for non-compliance with the auditing standards on fundamental and basic audit procedures while auditing a public listed company. These findings affected key financial statements line items such as investment in associates, property development costs, trade and other receivables, revenue and costs from construction contracts and group consolidation.

RSL and the partners subsequently appealed to the SC against the AOB’s decisions. After deliberation, the SC had dismissed the appeal and affirmed the AOB’s decisions.

SECURITIES COMMISSION MALAYSIA
AUDIT OVERSIGHT BOARD

SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):

Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group
Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC