TheEdge : Having read Bursa's of Originating Summons and SIR - What is your conclusion?

by Pearlwhite 5th December 2021 10.12AM (Updated 6th December 2921 10.35AM)

The Edge in its feature length coverage on 29th November 2021 entitled “Bursa’s suits sheds more light on Serba Dinamik’s financials” sheds some very interesting lights on Bursa and The Edge.

In the four areas of SIR, it always begins in a paragraph or two that "EY shares the same concerns" or "EY found discrepancies".  Thereafter, it continues with a repeat of KPMG's findings that was disclosed by Serba Dinamik in May 2021.

That narrative meant that that all of KPMG's findings are correct, in addition to more discrepancies that were found.  So,

Firstly, the question is that does "EY shared the same concerns" or "EY found discrepancies" a result that cannot be disputed? Not once was there any mention of words that suggests "finalisation", "completion", "conclusion" or some words towards that effect.

Secondly, there was never mention of any attempts to resolve the RM1.438 billion of audit discrepancies.  Was this the reason why Bursa wanted it to be disclosed as EY was supposed to stop work (just like what KPMG did previously)?

Thirdly, nor was the fact that up to RM3 billion worth of audit discrepancies that was resolved was ever mentioned or more likely conveniently left out.

Finally, what is more intriguing, Bursa has given the option to Serba Dinamik to continue to complete the SIR with EY and in the event that EY resigns or is terminated, Serba Dinamik will appoint another auditor with international affiliation to complete the SIR in its Originating Summons.

Consider this.  Here is an excellent framing of the above mentioned,

"EY found 'evidence' backing KPMG's doubts on Serba Dinamik"

https://www.themalaysianist.com/ey-found-evidence-backing-kpmgs-doubts-on-serba-dinamik

This together with “Bursa’s suits sheds more light on Serba Dinamik’s financials” paints a very negative picture to the ongoing SIR.

However, if the media were truthful and not immoral and went on by presenting the headline in a balanced way by considering Serba's Dinamik response to Bursa's and EY's affidavits, it would have went like this,

"With RM3 billion cleared, EY continues to work on RM1.4 billion of unresolved audit discrepancies."

"With, two thirds cleared with one third being audited.  A little more to go.".

This whole SIR saga deserves a re-look as there are too many discrepancies of it own as the presentation of facts were solely from Bursa's and EY's point of view.

* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.

It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.