Soon after the cabinet listened to an explanation by auditors, Deloitte, they seem satisfied with it.
Now, comes an example of unsolicited comment by a minister, in his haste to show support for PM:
'The 1Malaysia Development Berhad (1MDB) has received a clean audit report (unqualified) for its audited financial statements for the year 2010-2014 by the Companies Commission of Malaysia (CCM).
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said until today, no reports of serious offenses such as fraud and dishonesty were detected during the audit of 1MDB.
It was an offense under the Companies Act 1965 if the auditor did not report any serious offense to the CCM, which carries a jail term of seven years or RM250,000 fine or both, he said in a statement here.
Therefore, he said, any wrongdoing of 1MDB funds was merely an allegation and had been refuted by related parties including 1MDB and Petro Saudi Limited.' - http://www.therakyatpost.com/
Just like the cabinet's quick clearance on 1MDB, the minister's statement is a no-brainer and unhelpful in giving assurance to the public on the company's state of affairs.
CCM's role is to ensure registered companies comply with the Companies Act 1965. That a company filed its audited financial statements which are unqualified by its auditors does not necessarily mean there are no problems with the accounts, especially in the case of 1MDB which has attracted widespread suspicions.
The external auditors' role is rather limited in scope and is best summed up by the expression that they are 'watchdogs, not blood hounds'. If directors are bent on scheming to hide certain transactions, it is unlikely to be revealed by standard auditing programmes. There are already calls for the Auditor General and Public Accounts Committee to separately audit the accounts, which must have been an insult to the relevant external auditors involved. Some people do not even trust the government bodies to audit and have even called for forensic auditors!
Our government's credibility must be at an all time low.
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Now, comes an example of unsolicited comment by a minister, in his haste to show support for PM:
'The 1Malaysia Development Berhad (1MDB) has received a clean audit report (unqualified) for its audited financial statements for the year 2010-2014 by the Companies Commission of Malaysia (CCM).
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said until today, no reports of serious offenses such as fraud and dishonesty were detected during the audit of 1MDB.
It was an offense under the Companies Act 1965 if the auditor did not report any serious offense to the CCM, which carries a jail term of seven years or RM250,000 fine or both, he said in a statement here.
Therefore, he said, any wrongdoing of 1MDB funds was merely an allegation and had been refuted by related parties including 1MDB and Petro Saudi Limited.' - http://www.therakyatpost.com/
Just like the cabinet's quick clearance on 1MDB, the minister's statement is a no-brainer and unhelpful in giving assurance to the public on the company's state of affairs.
CCM's role is to ensure registered companies comply with the Companies Act 1965. That a company filed its audited financial statements which are unqualified by its auditors does not necessarily mean there are no problems with the accounts, especially in the case of 1MDB which has attracted widespread suspicions.
The external auditors' role is rather limited in scope and is best summed up by the expression that they are 'watchdogs, not blood hounds'. If directors are bent on scheming to hide certain transactions, it is unlikely to be revealed by standard auditing programmes. There are already calls for the Auditor General and Public Accounts Committee to separately audit the accounts, which must have been an insult to the relevant external auditors involved. Some people do not even trust the government bodies to audit and have even called for forensic auditors!
Our government's credibility must be at an all time low.
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