The Securities Commission Malaysia’s Audit Oversight Board (AOB) has publicly reprimanded Sharinah binti Mohamed Iqbal, a partner of PKF, for breaching section 31Z(1)(b) of the Securities Commission Malaysia Act 1993 (SCMA) when she failed to comply with the International Standards on Auditing when auditing a public interest entity (PIE). Compliance with these auditing standards is a condition of registration for all AOB registrants.
As the Engagement Partner responsible for the audit of the PIE, Sharinah had failed to perform sufficient audit procedures and obtain sufficient audit evidence to support the audit opinion in relation to the PIE’s ability to continue as a going concern.
In particular, Sharinah had failed to follow up on the status of the PIE’s bank loan and seek further audit evidence to support her conclusion in relation to the PIE’s ability to repay its bank borrowings. In addition, she did not perform quantitative assessment to assess the PIE’s tight cash flow position and its ability to fulfil all its commitments and obligations.
Sharinah did not file an appeal against the AOB’s decision within the prescribed time provided in the SCMA.
