The Audit Oversight Board (AOB) has revoked the registration of an audit firm Wong Weng Foo & Co along with the Managing Partner, Wong Weng Foo and its Partner, Abdul Halim Husin effective from 2 December 2015.
The revocation is under section 31Q(1)(a)(B) of the Securities Commission Malaysia Act 1993 (SCMA) for failure to remain fit and proper to audit public interest entities.
The SCMA gives AOB the power to revoke the registration of an auditor if the auditor contravenes condition of registrations imposed by the AOB under section 31O(3) of the SCMA.
Wong Weng Foo & Co, Wong Weng Foo and Abdul Halim Husin were found to have failed to comply with auditing standards in the engagement performance of two public listed entities. In addition, Wong Weng Foo & Co failed to carry out the practice honestly, competently and with due care when it failed to implement the remedial action as reported to AOB in respect of past inspection findings.
Wong Weng Foo & Co also failed to ensure that the person who audits the financial statement of a public listed entity on behalf of the audit firm is appropriately qualified, sufficiently trained and competent.
This is the first time AOB is using its powers to revoke the registration of auditors. AOB’s action against auditors is a testament to its commitment to promote confidence in the quality and reliability of audited financial statements of public interest entities. It is also a strong signal to the profession and market that non-compliance with regulations and standards will not be tolerated.
The AOB was set up by the Securities Commission Malaysia in 2010, to oversee the auditors of public interest entities, protect investors’ interest and promote confidence in the quality and reliability of audited financial statements of public interest entities. The independent audit regulator conducts yearly inspection to ensure audit firms comply with requirements of the International Standard on Quality Control 1, International Standards on Auditing and the relevant MIA By- Laws (On Professional Ethics, Conduct and Practice).
