IN light of recent events, the Securities Commission Malaysia (SC) wishes to reiterate that under the Capital Markets and Services Act 2007, auditors have a statutory obligation to immediately report to the SC, if they reasonably believe that there are any matters which may constitute a breach or non-performance of any requirement of securities laws, rules of the stock exchange or any matter which may adversely affect to a material extent the financial position of the listed company.

The SC’s Audit Oversight Board also stated that external auditors play an important role in promoting confidence in the quality and reliability of audited financial statements in Malaysia.

As such, auditors should be allowed to carry out their responsibilities and render their independent opinion without fear or favour and discharge their duties free from any retaliation.

Auditors are also required to exercise their professional scepticism during their audit and always apply the International Standards of Auditing as adopted by the Malaysian Institute of Accountants.

SC also wishes to clarify that it has not spoken to Mohamed Ilyas Pakeer Mohamed, chairman of Serba Dinamik Holdings Bhd as reported in the article entitled “What Serba Dinamik said on its audit issues”, which appeared in The Edge CEO Morning Brief on June 23.

SC’s investigation into Serba Dinamik is still on-going. – June 26, 2021.

* The above letter is from the Securities Commission Malaysia and Audit Oversight Board.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.