1MDB auditor Deloitte to face accounting body’s disciplinary board

PETALING JAYA: The Malaysian Institute of Accountants (MIA) has completed its probe on former 1MDB auditor Deloitte and the case has been referred to its disciplinary committee.

“The case has now been escalated for hearing at the disciplinary committee,” said MIA’s chief executive officer Nurmazilah Mahzan in a brief statement today.

MIA is a regulatory body that monitors the professional conduct of accountants based on the provisions of the Accountants Act 1967.

DAP lawmaker Tony Pua in 2015 lodged a complaint to the MIA against Deloitte and its audit partner, Ng Yee Hong, for failing to conduct a thorough audit on 1MDB for the period of March 2013 and 2014.

Deloitte was 1MDB’s third auditor, after Ernst & Young LLP and KPMG.

In 2016, Deloitte resigned as the financial scandal surrounding the debt-ridden state firm resonated across the global financial system.

KPMG was responsible for 1MDB’s accounts for 2010, 2011 and 2012, while Deloitte managed the 2013 and 2014 financial statements.

KPMG had issued a statement saying the financial statements for the fiscal years ended March 2010, 2011 and 2012 did not provide a true and fair assessment of 1MDB.

The professional service company had also informed 1MDB to take all steps necessary to prevent any further reliance on the audit reports that it prepared for the company for the respective periods.

Earlier today, Auditor-General Madinah Mohamad said in a statement that former prime minister Najib Razak had ordered a paragraph in the audit report which contained two versions of 1MDB’s 2014 financial statement to be removed and ordered a full investigation by the authorities.