Audit firm, partners fined and suspended

19 Aug 2019 / 21:51 H.

KUALA LUMPUR: The Securities Com-mission Malaysia’s Audit Oversight Board (AOB) has fined Chengco PLT and its partners a total of RM276,000 and prohibited them from accepting public interest entities (PIEs) or schedule funds as clients and auditing their financial statements for 12 months, with effect from Aug 6.

The firm and its partners concerned were found to have multiple instances of non-compliance with the international auditing standards, which were discovered in two inspections in 2016 and 2018 respectively. The AOB noted that the firm had failed to remedy a recurring finding identified in the first inspection.

As a result, the firm and the partners, Hong Thuan Boon and Liew Kwai Choy, were prohibited from accepting PIEs or schedule funds as clients and auditing their financial statements for 12 months.

The firm was fined RM175,000 while Hong was fined RM57,000. Hong and Liew were engagement partner and engagement quality control reviewer respectively for the audit. Another of the firm’s partner, Yap Peng Boon, was also fined RM44,000 for non-compliance of audit procedures.

The firm, Hong, Liew and Yap appealed against the AOB’s decisions and the SC dismissed the appeal.

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