.jpg)
Securities Commission Malaysia’s (SC) Audit Oversight Board (AOB) has fined Adam Selamat bin Musa of Adam & Co RM75,000 for failing to comply with the International Standards on Auditing when auditing a public listed company. This is the largest fine imposed by AOB so far.
Adam Selamat who is an AOB registrant breached the condition of registration under Section 31O(3) of the Securities Commission Malaysia Act 1993 (SCMA) which requires AOB registrants to comply with the International Standards on Auditing when auditing the financial statements of a public interest entity. The instances of non-compliance in this case included failure to design and perform certain audit procedures.
Adam Selamat’s appeal to the SC was solely on the quantum of the monetary penalty imposed by AOB. After giving due consideration to the grounds of appeal, the SC rejected the appeal and affirmed the decision of AOB.
