• Register
Return to: Home > News > Advisory > Deloitte Malaysia faces disciplinary action over 1MDB audit

Deloitte Malaysia faces disciplinary action over 1MDB audit

The Malaysian Institute of Accountants (MIA) has referred Deloitte to a disciplinary committee for further action, following the completion of its investigation into the firm’s audit of 1MDB.

The scandal-ridden development company 1MDB was allegedly used by former Malaysian Prime Minister Najib Razak to channel over $700m into his personal bank accounts.

1MDB is currently audited by PwC which was appointed by the Malaysian finance minister due it to being the only Big Four firm considered unaffected by the corruption charges levelled against the investment fund.

MIA CEO Nurmazilah Dato’ Mahzan issued a short statement on 25 November: “With regard to the recent news in the media relating to 1MDB Auditor, Messrs Deloitte, MIA wishes to confirm that MIA has done the investigation on Deloitte where the case has now been escalated for hearing at the Disciplinary Committee.”

In June, KPMG, which was fired by 1MDB in 2012 for raising too many questions about its activities, stated that its audits of the company for the FY ended 31 March 2010 to FY ended 31 March 2012 should no longer be relied upon after a report which was previously unavailable to the firm was declassified by the Malaysian auditor general.

A spokesperson for Deloitte Malaysia said: "We continue to cooperate fully with all relevant authorities investigating matters associated with 1MDB. We stand by our professionalism, quality, independence and ethics in the services we provide. Given the ongoing investigations by the authorities, it would not be appropriate for us to comment further.”

 

 

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.