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The Star
12-06-2025
- Business
- The Star
AOB suspends Chengco, sanctions five auditors
The SC said AOB's findings were in fundamental and key audit areas. PETALING JAYA: The Securities Commission's (SC) Audit Oversight Board (AOB) has suspended the registration of audit firm Chengco PLT (CCO) for two years due to serious audit quality issues. In a statement, the SC said it had also imposed sanctions against five of CCO's audit partners who were the engagement partners and engagement quality control reviewers (ECQR) of three public interest entities (PIEs). This entailed the suspension of Hong Thuan Boon and Yap Peng Boon for two years. Further, Tan Wae Leng, Kong Tung Sam and Ng Kee Siang were also prohibited from accepting as clients and auditing any PIEs or scheduled funds for one year. 'The sanctions followed the AOB's findings of multiple breaches in relation to CCO's failure to comply with the relevant requirements of the International Standards on Auditing as adopted by the Malaysian Institute of Accountants when auditing the three PIEs,' the SC said. The SC added the findings were in fundamental and key audit areas. These include failures to obtain sufficient audit evidence in areas such as bank borrowings, opening balances and prior year adjustments, use of going concern assumption, other payables and accruals, revenue, cost of sales, redeemable convertible preference shares and goodwill. Also, recurring audit deficiencies were found in the areas of property development costs and fixed deposits. 'In addition, the EQCR failed to sufficiently review key audit documentation, particularly those relating to significant judgements and risk areas. This had an adverse effect on overall audit quality,' the SC said.
BusinessToday
12-06-2025
- Business
- BusinessToday
SC Suspends Audit Firm Chengco And Sanctions Auditors
The Securities Commission Malaysia's Audit Oversight Board (AOB) has suspended the registration of audit firm Chengco PLT for two years due to serious audit quality issues. This enforcement action, which took effect from June 12, 2025, follows the SC's dismissal of CCO's appeal, affirming the AOB's decision. In addition to the firm's suspension, the AOB also imposed sanctions on five of CCO's audit partners. These partners had served as engagement partners and engagement quality control reviewers (EQCR) for three public interest entities (PIEs). SC has also suspended Hong Thuan Boon and Yap Peng Boon for two years and separately, Tan Wae Leng, Kong Tung Sam, and Ng Kee Siang are prohibited from accepting as clients and auditing any PIEs or scheduled funds for one year. The suspensions and prohibitions for these partners were effective concurrently from April 30, 2025, as they did not appeal the AOB's enforcement action. The sanctions stem from the AOB's findings of multiple breaches related to CCO's failure to comply with the International Standards on Auditing (ISA), as adopted by the Malaysian Institute of Accountants (MIA), during their audits of the three PIEs. The AOB highlighted that these findings were in fundamental and key audit areas. Furthermore, the AOB identified recurring audit deficiencies in areas such as property development costs and fixed deposits. A significant concern raised was the EQCR's failure to sufficiently review key audit documentation, particularly those related to significant judgements and risk areas, which adversely impacted overall audit quality. These deficiencies were found to be prevalent across multiple audit engagements inspected and some were recurring issues from a past AOB inspection on CCO in 2019. Despite being previously sanctioned in 2019, CCO failed to demonstrate any significant improvement in its overall audit quality. It was also noted that Hong Thuan Boon and Yap Peng Boon had also been previously sanctioned by the AOB in 2019. Related
The Star
12-06-2025
- Business
- The Star
AOB suspends Chengco for two years over audit breaches
The Securities Commission of Malaysia building in Kuala Lumpur is a 2001 Asean Energy Award winner where it saves RM2.5mil per annum alone on electricity bills. PETALING JAYA: The Securities Commission's Audit Oversight Board (AOB) has suspended the registration of audit firm Chengco PLT (CCO) for two years due to serious audit quality issues. In a statement, the Securities Commission (SC) said it has also imposed sanctions against five of CCO's audit partners who were the engagement partners and engagement quality control reviewers (ECQR) of three public interest entities (PIEs). This entailed the suspension of Hong Thuan Boon and Yap Peng Boon for two years. Further, Tan Wae Leng, Kong Tung Sam and Ng Kee Siang were also prohibited from accepting as clients and auditing any PIEs or scheduled funds for one year. 'The sanctions followed the AOB's findings of multiple breaches in relation to CCO's failure to comply with the relevant requirements of the International Standards on Auditing as adopted by the Malaysian Institute of Accountants when auditing the three PIEs,' the SC said. The SC added the findings were in fundamental and key audit areas. These include failures to obtain sufficient audit evidence in areas such as bank borrowings, opening balances and prior year adjustments, use of going concern assumption, other payables and accruals, revenue, cost of sales, redeemable convertible preference shares and goodwill. Also, recurring audit deficiencies were found in the areas of property development costs and fixed deposits. 'In addition, the EQCR failed to sufficiently review key audit documentation, particularly those relating to significant judgements and risk areas. This had an adverse effect on overall audit quality,' the SC said. It was also noted that these findings were prevalent across the audit engagements inspected and some were recurring from the AOB's past inspection on CCO. The SC stated that despite being previously sanctioned by the AOB in 2019, CCO had failed to demonstrate an improvement in overall audit quality. Hong Thuan Boon and Yap Peng Boon were also previously sanctioned by the AOB in 2019. While CCO appealed to the SC against the AOB's enforcement action, the SC had dismissed the appeal and affirmed the AOB's decision. The suspension took effect from June 12, 2025. Meanwhile, the affected partners did not appeal the AOB's enforcement action. Their suspensions and prohibitions were effective concurrently from April 30, 2025.
New Straits Times
12-06-2025
- Business
- New Straits Times
AOB suspends Chengco, sanctions auditors from auditing
KUALA LUMPUR: The Securities Commission's Audit Oversight Board (AOB) has suspended the registration of Chengco PLT for two years due to serious audit quality issues. The AOB also imposed sanctions against five of Chengco's audit partners who were the engagement partners and engagement quality control reviewers (ECQR) of three public interest entities (PIEs). It suspended Hong Thuan Boon and Yap Peng Boon for two years. It also prohibited Tan Wae Leng, Kong Tung Sam and Ng Kee Siang from accepting as clients and auditing any PIEs or schedule funds for one year. The sanctions followed the AOB's findings of multiple breaches in relation to Chengco's failure to comply with the relevant requirements of the International Standards on Auditing (ISA) as adopted by the Malaysian Institute of Accountants (MIA) when auditing the three PIEs. Further, the findings were in fundamental and key audit areas. These include failures to obtain sufficient audit evidence in areas such as bank borrowings, opening balances and prior year adjustments, use of going concern assumption, other payables and accruals, revenue, cost of sales, redeemable convertible preference shares and goodwill. Recurring audit deficiencies were also found in the areas of property development costs and fixed deposits. In addition, the EQCR failed to sufficiently review key audit documentation, particularly those relating to significant judgements and risk areas. This had an adverse effect on overall audit quality. "These findings were prevalent across the audit engagements inspected and some were recurring from the AOB's past inspection on Chengco. "Despite being previously sanctioned by the AOB in 2019, Chengco failed to demonstrate an improvement in overall audit quality," it said. Hong and Yap were also previously sanctioned by the AOB in 2019. Chengco had appealed to the SC against the AOB's enforcement action, it said. The SC dismissed the appeal and affirmed the AOB's decision. The suspension took effect from June 12 2025. The affected partners did not appeal the AOB's enforcement action. Their suspensions and prohibitions were effective concurrently from wApril 30 2025.
