KPMG quits as external auditor of Serba Dinamik

by PRIYA VASU / pic by TMR FILE

SERBA Dinamik Holdings Bhd external auditor KPMG has resigned with immediate effect in a written notice to the group yesterday.

According to a Serba Dinamik’s filing to Bursa Malaysia today, KPMG noted the suit filed by Serba Dinamik on June 22 against it has compromised its ability to independently continue the audit engagement and discharge its professional duties as external auditor of the company.

“The Company is currently identifying the new auditors to be engaged pursuant to Section 271(2)(b) of the Companies Act 2016 and will make an immediate announcement to this effect immediately upon the finalisation of appointment of the new auditors,” Serba Dinamik stated in the filing.

Serba Dinamik on Monday decided to pursue legal actions against KPMG for causing reputational damages to the company after having raised red flags on the group account discrepancies amounting to RM4.54 billion.

Yesterday, Bursa Malaysia in a statement noted it is imperative for Serba Dinamik to undertake the necessary steps to appoint the Independent Reviewer immediately to address the uncertainty surrounding the veracity and accuracy of the matters as highlighted by its external auditors in a timely manner

The Securities Commission in another separate statement stated auditors have a statutory obligation to immediately report to the SC, if they reasonably believe that there are any matters which may constitute a breach or non-performance of any requirement of securities laws.

Both regulators also denied having spoken to Serba Dinamik’s Chairman Datuk Mohamed Ilyas Pakeer Mohamed regarding KPMG Ltd’s audit concern on the company.

RELATED ARTICLES

Tuesday, January 7, 2020

A clean debut for Supergenics

Thursday, April 22, 2021

Axis REIT’s 1Q income rises 3.3%

Thursday, October 26, 2017

Bursa gains on better trading volumes

Tuesday, April 30, 2019

F&N registers RM104.4m 2Q19 profit