Wednesday, November 21, 2018

Reposting :Deloitte admits it missed billions in fraudulent 1MDB transactions-Will Deloitte International go the way of Arthur Andersen

by Ganesh Sahathevan

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The Star reported:
Member of Parliament for Kepong Lim Lip Eng has asked the Malaysian Institute of Accountants (MIA) on the status of its investigation of Deloitte Malaysia over its handling of the audit of 1Malaysia Development Bhd (1MDB).
Speaking to reporters in Parliament where he had earlier posed a question to the Ministry of Finance on the role of Deloitte in the 1MDB scandal, Lim said that top executives of Deloitte had defended its work when they testified to the Public Accounts Committee in 2015."We all know now that these defences were false. We call upon MIA to take action," said Lim. 
Mr Lim makes his demand in a very different 
context from that which existed in 2016 when the story below was published. Deloitte in Malaysia as well as the international partnership can no longer be assured that it will have the Malaysian Government on its side.\\



DOJ info would have impacted 1 MDB audit, Deloitte says-Deloitte admits it missed billions in fraudulent transactions-Msian partnership might take international firm the way of Arthur Andersen 

Looks  like Deloitte will join KPMG:

DOJ info would have impacted audit, Deloitte says

     37 comments     Published Today 11:57 am     Updated Today 12:57 pm

    Deloitte Malaysia said its audit of 1MDB in 2013 and 2014 would have been impacted if it had known at that time the information contained in the United States Department of Justice's (DOJ) lawsuits to seize 1MDB-linked assets.
    As such, 1MDB's 2013 and 2014 financial statements, which the auditing firm signed off on March 28, 2014 and Nov 5, 2014, "should no longer be relied upon", it said in a statement.
    "The complaint (filed by DOJ) contains information, which, if known at the time of the 2013 and 2014 audits of 1MDB, would have impacted the financial statements and affected the audit reports and, accordingly, those audit reports issued by Deloitte Malaysia dated March 28, 2014 and Nov 5, 2014 respectively in connection with the 2013 and 2014 financial statements of 1MDB should no longer be relied upon," Deloitte said in a statement.
    This comes after 1MDB announced that Deloitte is quitting as 1MDB's auditor, making it the third audit firm to part ways with 1MDB since its inception in 2009.
    Deloitte notified 1MDB of its intention to quit in February, the state investment said in a statement yesterday.
    Deloitte remains 1MDB auditor until a replacement is appointed, 1MDB said.
    1MDB's accounts from 2010 to 2012 were audited by KPMG, but the firm's services were terminated in December 2013.
    According to the Public Accounts Committee report on 1MDB, KPMG was fired after it refused to sign off on the accounts without details of investments worth US$2.32 billion.
    KPMG signed off on the accounts after Abu Dhabi's International Petroleum Investment Compny guaranteed an investment, the PAC report said.
    The Wall Street Journal reported another audit firm Ernst & Young was fired in 2010 for raising similar questions.
    The DOJ is seeking to seize more than US$1 billion of assets it said were purchased using funds siphoned from 1MDB.
    The 1MDB board yesterday said it is confident of no wrongdoing.
    However, it is taking precautionary measures by discounting its 2013 and 2014 financial statements until the DOJ lawsuits have been dealt with in court.

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