DECISION OF THE DISCIPLINARY COMMITTEE MALAYSIAN INSTITUTE OF ACCOUNTANTS

               The Council of the Malaysian Institute of Accountants hereby gives notice that on 6 January 2014, after due inquiry by the Disciplinary Committee of the Institute, Goh Keng Juay (Mem. No.: 1007) was found to have committed an act amounting to ‘unprofessional conduct’ within the meaning as provided under Rule 2 of the Malaysian Institute of Accountants (Disciplinary) Rules 2002 [P. U. (A) 229/2002] [“the MIA (Disciplinary) Rules”]. The decision of the Disciplinary Committee was based on the member’s own admission that as auditor of Polymate Holdings Berhad (‘PHB’) for the financial year ended 30 September 2003, he had failed to discharge his professional duties in carrying out the audit of PHB in that he had:

(1) not documented matters that are important in providing evidence that audit work had been properly performed ;

(2) not obtained sufficient audit evidence to form the judgement on non-provisioning of the purported trade debtors of PHB;

(3) not exercised sufficient professional skepticism throughout the audit process for sale and trade debtors of PHB;

(4) relied significantly on management’s representation in forming the judgement for non-provisioning of the purported trade debtors of PHB ; and

(5) allowed his familiar relationship with the Managing Director of PHB to influence his objectivity and independence in the course of the audit for PHB. The Disciplinary Committee in exercise of its powers under

Rule 18(3) of the MIA (Disciplinary) Rules has ordered the member:

• to be reprimanded;

• to pay a fine of RM4,000-00;

• to pay the Institute the sum of RM5,000-00 in respect of costs and expenses of and incidental to the disciplinary hearing before the Disciplinary Committee and the investigation conducted by the Investigation Committee ;

• to attend a course of instruction relevant to the application of clarified International Standards on Auditing (ISA) within six months from 13 January 2014. The decision of the Disciplinary Committee is effective from 4 February 2014.

SUDIRMAN BIN MASDUKI
Registrar
On behalf of the Council of the Malaysian Institute of Accountants


Source: http://www.mia.org.my/at/at/2013/10/11