KPMG quits Serba Dinamik

Serba Dinamik said, in a filing with Bursa Malaysia, that it had received a notice in writing from KPMG on its resignation.

KUALA LUMPUR: KPMG PLT has resigned as external auditors of Serba Dinamik Bhd with immediate effect.

Serba Dinamik said, in a filing with Bursa Malaysia, that it had received a notice in writing from KPMG on its resignation.

“KPMG, in the notice, stated that the suit filed by the company on June 22 against them with regard to the ongoing statutory audit of the company for the financial period ending June 30, 2021 has compromised their ability to independently continue the audit engagement and discharge their professional duties as auditor of the company, ” it said.

Serba Dinamik said it was identifying the new auditors under the Companies Act 2016 and would make an immediate announcement to this effect upon the finalisation of appointment of the new auditors.

Serba Dinamik’s board had agreed in principle to appoint Ernst & Young Advisory Services as its independent reviewer to assess the veracity and accuracy of the matters highlighted by KPMG.

On Tuesday, Serba Dinamik said it would be taking legal action against KPMG for alleged negligence, breach of contract and breach of statutory duty.

Serba Dinamik said following its suit against KPMG, it would be deliberating whether the scope of its independent reviewer Ernst & Young Advisory Services Sdn Bhd has to be expanded or otherwise.

In a separate statement, the Malaysian Institute of Accountants reiterated that the role of the approved statutory auditors is to provide reasonable assurance on whether the financial statements prepared by reporting entities are true and fair.

President Dr Veerinderjeet Singh said through the external audit, auditors play an important role in promoting confidence in the quality and reliability of audited financial statements in Malaysia.

The Malaysian Institute of Certified Public Accountants, as the national professional accountancy body of Malaysia as well as a founder member of the International Federation of Accountants, emphasised on the importance of the external auditors’ role in promoting integrity of the financial reporting process. “An auditor plays an essential role in providing a check and balance on an entity’s financial reporting, ” it said.