The Securities Commission Malaysia (SC)’s Audit Oversight Board (AOB) has publicly reprimanded Yean Wai Nye, a partner of T. H. Kuan & Co.
“As the Engagement Partner responsible for the audit of a public interest entity (PIE), Yean has failed to comply with the relevant International Standards on Auditing (ISA), particularly regarding the valuation of goodwill,” the commission said in a statement.
Yean failed to challenge the key assumptions used for the financial projections and assess the appropriateness of the expert’s work as audit evidence in auditing management’s impairment assessment of goodwill.
The AOB stresses that the impairment assessment of goodwill is crucial in light of
economic uncertainties and evolving business environment, hence, it requires due care and sound judgement.
“Compliance with auditing standards when auditing the financial statements of a PIE is a condition of registration for AOB registrants. Thus, the AOB would not hesitate to take action against the auditors for non-compliance with the auditing standards and registration conditions,” the statement said.
