This article has been updated for accuracy 

KUALA LUMPUR (Sept 1): Audit firm TGS TW PLT has resigned as the external auditor of at least 10 Bursa Malaysia-listed companies across the Main, ACE and LEAP Markets, with most of the companies citing the firm's internal portfolio and resource-management considerations.

Most companies said they had received written notices from TGS TW on Aug 28, following the firm's review of its portfolio and allocation of resources, according to separate Bursa filings on Tuesday. 

The companies added that their boards were not aware of other matters relating to the auditor's resignation that needed to be brought to shareholders' attention and currently in the midst of identifying replacement auditors, with further announcements expected once the appointments have been finalised. 

The affected companies include one Main Market-listed company, five on the ACE Market, and four on the LEAP Market. 

As at July 31, the Securities Commission Malaysia's (SC) register showed five registered individual auditors attached to TGS TW — Lian Jat Meang, Lim Ge Ru, Tan Lea Ling, Tan Tian Wooi and Teoh Chey Yeat.

On June 23, the SC's Audit Oversight Board (AOB) had imposed monetary penalties on two individual auditors from TGS TW over deficiencies identified in an audit of a public interest entity.

According to the SC's website, the AOB imposed a RM50,000 penalty on Tian Wooi, who had been the engagement partner for the audit of an unnamed public interest entity for the financial year ended March 31, 2022. 

The regulator found that Tian Wooi had failed to perform adequate audit procedures and obtain sufficient appropriate audit evidence to support the conclusions and basis of the audit opinion in areas including the conclusion of the audit, intangible assets, revenue, cost of sales and a multi-location audit involving trade payables of a significant overseas subsidiary.

On the same date, Lim was fined RM25,000 in his role as the engagement quality control reviewer for the same audit. The AOB said Lim failed to sufficiently review conclusions reached in significant audit areas involving intangible assets, revenue and the multi-location audit of trade payables at the overseas subsidiary.

Both were found to have breached registration conditions imposed by the AOB through failures to comply with relevant requirements under the International Standards on Auditing.

However, there is no disclosure from the affected companies linking those sanctions with the latest resignations, and the AOB's actions were against the two individual auditors rather than TGS TW itself.