SC fines Deloitte’s partner for non-compliance

Huang was fined RM63,000 over failure to comply with international auditing standards

by TMR / pic by MUHD AMIN NAHARUL

THE Securities Commission Malaysia’s (SC) Audit Oversight Board has fined a partner of Deloitte PLT over failure to comply with the international standards on auditing when performing a public interest entity (PIE).

Huang Khean Yeong was fined RM63,000 for failing to design and perform audit procedures involving multi-location audit of the PIE and insufficient audit procedures including group consolidation, construction contracts and goodwill.

The SC in a statement said Huang is not appealing on the case and the fine will take effect immediately. The capital market regulator did not name the PIE.

But the SC has been at loggerhead with Deloitte.

Early this year, the SC imposed administrative sanctions on the audit firm for four purported breaches of provisions involving reporting to the SC and to the trustee of the RM2.4 billion sukuk issued by Bandar Malaysia Sdn Bhd (BMSB), a subsidiary of 1Malaysia Development Bhd.

The SC also slapped a RM2 million fine on Deloitte for failing to discharge its statutory obligations. The capital market regulator also imposed a fine of another RM200,000 for not submitting a copy of financial statements to a trustee within the legally stipulated time.

The SC previously said the fines were in relation to the RM2.4 billion sukuk murabahah programme issued by BMSB.

According to business daily The Edge, Deloitte has filed a judicial review against the RM2.4 million fine by the SC. — TMR