Audit firm, auditors fined, barred from auditing for a year - SC

KUALA LUMPUR: Audit firm, RSL PLT (RSL) and its partners have been prohibited by the Securities Commission Malaysia (SC) from accepting as clients and auditing public interest entities or schedule funds for 12 months period, commencing Nov 1, 2020.

In a statement today, the SC said the two partners involved were Lim Lip Chin and Lim Sang Chee.

In addition to the prohibition, the SC’s Audit Oversight Board (AOB) has 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,” the commission said.

The SC said subsequent to the AOB’s decisions, RSL and the said partners had appealed to the SC, but upon deliberation, the commission had dismissed the appeal and affirmed the AOB’s decisions.

-- BERNAMA