• Register
Return to: Home > News > Financial Results > 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

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    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.