KPMG defends 1MDB audit

 GMK: For those want to know what a statutory auditor’s report means, please read the report as shown in the audited accounts line by line.

The auditor’s report is only for use of shareholders and disclaims responsibility for those who use it for other purposes.

In addition, what KPMG claimed was correct. The audit was performed in accordance with International Auditing Standards (IAS) and these standards did not cover moral duties to report anything other than that confined to what is required in the IAS.

KMPG has done nothing wrong, and there is no way that they can be charged. Issues like backdating legal documents, etc, in order to circumvent certain reporting requirements are too common and nothing will prove that is illegal or against any laws, except being morally wrong.

Nil: Who did KPMG report to? The board of 1Malaysia Development Berhad (1MDB), Parliament, the PM or the public?

An audit report would reveal different things according to who the report is intended for. We need to have a full explanation from KPMG.

NewMalaysia: Malaysia has too many stupid people who think that whatever the government doing is right. Just ask yourself how much salary a minister earns a month and why most of them live an ultra-luxurious lifestyle?

Ministers are also public servants and should live a simple and humble life. Being in government should by no means be a way for them to live a wealthy life.

To me, a government should have no business venturing into any form of businesses. The government at most can set up a special fund to invest in certain businesses and not take an active role because there would definitely be conflict of interests and lack of expertise in managing the business.

Malaysia already has an investment arm in Khazanah, why the need to form a company like 1MDB to venture into the energy business, especially without any expertise nor experience?

A proper government should only focus on making the country better for the people and not for ruling politicians to fill their own pockets.

Well Thats Fantastic: Indeed, the government should not be risking tax money in investments like this. It should be used to help Malaysians directly. This to me is like allowing a compulsive gambler access to the country’s coffers.

Basically: It is funny that auditors get really upset when even one sen is missing from the accounts. However, when it comes to billions of ringgit…

Oracle: I am aware that there are auditors who use what they call a ‘management letter’ in order to exclude certain transactions that would otherwise have to be highlighted.

Basically, this letter states that if the management undertakes to ‘rectify’ the matter before the next audit, they will not highlight it.

Whenever I have been part of a forensic audit, the first file I go for is the file containing the ‘management letter’. This practice, if resorted to, defeats the purpose of an ‘independent audit’, and can amount to misleading stakeholders.

I wonder what is the ‘wanting a change in a clause in transaction documents in order to clear the audit’. If there is an irregularity, it must be highlighted. If none, the audit must be ‘cleared’.

Shawkey Ghafur: It’s been just five years after the establishment of 1MDB, give them time to proof themselves rather than accusing them for accumulating debt. We can’t gain anything, if we fail to give a try.

Still remember, the government investment in 1MDB is only RM1 million in terms of shares, but today it has assets worth RM50 billion.

Thana55: Mr Shawkey Ghafur aka Umno cybertrooper, if it was your money, I bet you that your comments would be different. You have a very superficial knowledge of the issue and too easily believe all the Umno/1MDB spin masters.

Anonymous_1404717623: Shawkey Ghafur, it has been only five years but 1MDB’s debt ballooned from zero to RM42 billion. Somehow you or your next generations will have to shoulder it if 1MDB does not settle the debt.

Anonymous_1371508752: This will be a fight to the finish. Either the allegation is true which KPMG will not be able to run away from, or it is a total fabrication where KPMG will have to sue to be vindicated. No two ways about it.

Sideview: KPMG Global should conduct an audit of KPMG Malaysia. If the allegations are true, than KPMG should kick their local partners out of their global network. Without this audit, the KPMG brand name is tainted.

Sirach: This is the standard audit-speak when auditors are caught in a tight bind. I recall the erstwhile Arthur Andersen’s comments along similar lines when Enron (remember them) imploded. Well, we all know what happened to Arthur Andersen after that debacle.

Jaycee: Remember the Enron scandal which led to the downfall of their auditor, Arthur Anderson? The board of directors of Enron falsified numbers and influenced the auditors into looking the other way.

Enron filed for bankruptcy in 2001 while Arthur Anderson, which was established in 1913, had to close shop. The truth will ultimately surface.

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