Washing the dirty linen in public is never a good thing no matter what the circumstances, if you’re a public listed the repercussion could be detrimental. In view of the ping-pong match between Serba Dinamik and KMPG, things are getting even more interesting as the statutory body Security Commission of Malaysia has issued a statement in regards to an interview conducted with the chairman of the company.
During an interview session with a business paper, Chairman Datuk Mohamed Ilyas Pakeer Mohamed had claimed that had spoken to Security Commission on the whole matter, while SC claims no such conversation ever took place, this surely puts everyone in an awkward situation.
The statement highlights the important role an external auditor plays and the reason they are suppose to be skeptical in their approach. Here’s the full expert with some edits- “In the light of recent events the Securities Commission Malaysia (SC) wishes to reiterate that under the Capital Markets and Services Act 2007, 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, rules of the stock exchange or any matter which may adversely affect to a material extent the financial position of the listed company.
The SC’s Audit Oversight Board also stated that external auditors play an important role in promoting confidence in the quality and reliability of audited financial statements in Malaysia. As such, auditors should be allowed to carry out their responsibilities and render their independent opinion without fear or favour, and discharge their duties free from any retaliation. Auditors are also required to exercise their professional scepticism during their audit and always apply the International Standards of Auditing as adopted by the Malaysian Institute of Accountants.
SC also wishes to clarify that it has not spoken to Datuk Mohamed Ilyas Pakeer Mohamed, Chairman of Serba Dinamik Holdings Berhad as reported in the article entitled “What Serba Dinamik said on its audit issues”.
SC’s investigation into Serba Dinamik Holdings Berhad is still on-going