Pearlwhite's commentaries

Serba Dinamik is given an olive branch and redemption for the regulator?

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Publish date: Tue, 07 Dec 2021, 08:37 PM
Pearlwhite's commentaries

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.

Serba Dinamik to Bursa : Is it an olive branch, redemption or a little of both

By PearlWhite

28th November 2021, 9.00AM (Updated : 29th November 2021 8.40AM)

What is of intrigue is the following, taken from TheEdge,

https://www.theedgemarkets.com/article/why-bursa-sought-serba-dinamik-be-compelled-make-public-announcement-independent-review

"It also sought a court order directing Serba Dinamik to complete the SIR with E&Y or in the event of EY's premature resignation or its termination, the court orders the company to appoint an independent reviewer with international affiliation within 14 markets days for the SIR to be completed."

There are 2 observations to this intriguing statement. 

Firstly, Bursa gives the 2 options, either to complete the SIR with EY and not. 

In the event that the SIR is completed with EY, why does it need to be completed? Disclosure of the Factual Findings Update (FFU) means that it should be taken as final as its findings and conclusions are accurate, complete and factual. 

Does completion of the SIR change the Factual Findings Update outcome in some way?

In the event that the SIR would not be completed by EY, which is what Serba Dinamik has been pursuing, does this mean that Bursa is of the opinion that the EY SIR in whatever status of completion cannot be relied upon? If so, why is it then that the Factual Findings Update be deemed material and relied upon then?

Is this a redemption for Bursa for the way the SIR proceeded with questionable procedural, eventual decisions and execution previously?

Secondly, Serba Dinamik is expected to appoint an independent reviewer with international affiliation.  The quickest way and humanly possible way is with Nexia.  After all, Nexia is conducting the audit for FY20/21 and would be the logical candidate to investigate what is being currently audited.  If so, the SIR can be part of the Auditor's Statement for FY20/21. 

Is this an olive branch given to Serba Dinamik to resolve this the quickest and more importantly, with ultimate independence, assurance and credibility?

 

* 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.

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