KUALA LUMPUR (Oct 23): The Audit Oversight Board (AOB) of the Securities Commission Malaysia (SC) has imposed a one-year ban on Sathiea Seelean Manickam, prohibiting him from auditing public interest entities or scheduled funds.
The ban, starting from Tuesday, is accompanied by a fine of RM87,500, according to a statement on Wednesday.
Sathiea, previously a partner at the audit firm Morison Anuarul Azizan Chew (MAAC), was found to have violated the International Standards on Auditing.
He was also an engagement partner of a public listed company client for the financial period ended Dec 31, 2016 (FY2016), as well as FY2017 and FY2018.
“Specifically, he did not obtain sufficient audit evidence to support his audit opinion on audits of group financial statements in key audit areas, namely cash and bank balances, prepayments and investments,” said the AOB.
Sathiea had appealed to the SC against the AOB’s enforcement action. The SC dismissed the appeal and affirmed the AOB’s decision.
Earlier in March 2018, both Sathiea and another former partner of the MAAC, Tan Poh Ling, were reprimanded by the SC for failing to comply with auditing standards in their work on the financial statements of a public interest entity for the years 2011 and 2012.
They were found to have breached Section 31Z of the Securities Commission Malaysia Act 1993 by not designing and performing adequate audit procedures for trade receivables and revenue.
The AOB came into force in April 2010 to promote and develop an effective audit oversight framework, and to promote confidence in the quality and reliability of audited financial statements in Malaysia.