Yeah I am still suspicious of their refusal to heed the request of KPMG until the KLSE demanded the appointment of an independent reviewer. RM4.3 billions not a small figure. Any adjustments would have impacted the bottomline.
Posted by stockraider > Jun 29, 2021 6:57 PM | Report Abuse
Whether it is EY or KPMG the outcome & findings will be likely to be the same mah, Do not believe in false hope mah!
would EY take knife and stab competitor? would EY protect the club? if Kpmg could not satisfy themselves the contracts are real and legit, what can the company now do to satisfy EY?
Great analysis for showing a list of thorough possibilities that happened between KPMG and Serba. I personally agree that an audit firm won't take the hassle to conduct a comprehensive background check on a customer's client unless it's really material and give a substantial impact on the FS. They have a lot of audit testing to perform and won't be too tied towards a certain item as long as it is immaterial.
In regards to whether are there golf games between KPMG and Serba, it will be prohibited in the audit line due to the existence of familiarity threats.
Did kpmg respond to SD as per their guidance ? KPMG visiting wrong office shows how much communication took place between SD & KPMG at stage 2 & 3 below
It does not look like kpmg made a smart opinion that replies from SD was not satisfactory looking at 5th May presentation
.....................
C1) In the very high ranking meeting with Serba, KPMG raised queries over the subject matters
C2) Serba responded & replied with their version of findings & explanation, if not on the spot, later.
C3) KPMG opined that the replies from Serba were NOT satisfactorily justified & thus requested independent 3rd party to review the validity of the replies & evidences produced by Serba. By getting internationally recognized audit firm to be the independent reviewer to review over the evidences, the outcome of the review will be able to assist KPMG to conclude the audit.
C4) But Serba refused such suggestion from KPMG and labelled that request WAS UNNECESSARY. (Go read yourself on the statement of claim point 58 by Serba over the law suit to KPMG)
1) How do we know KPMG had not done enough to guide Serba?
All stories that made public were all from Serba & we never heard from KPMG, so quite one sided.
But there were some hints here & there from Serba via their own declaration, announcements & explanations that Serba was not transparent enough and was quite contradicting.
2) To discover & to report frauds were NOT the job of auditors. THE PRIMARY FUNCTION OF AUDITORS ARE TO EXPRESS OPINIONS ON THE ACCOUNTS BASED ON TESTS CONDUCTED IN ACCORDANCE WITH all applicable standards & requirements.
it’s important for auditors to handle smartly & not to act like Police.
As I mentioned we don’t know what triggered KPMG & what did KPMG has in hands, but if really got something big inside, hope below make sense:
A) find some minor issues but make it big enough for unable to resolve B) find chance to get independent reviewer step in for further investigation C) BANG!!! Something big revealed!! Now independent reviewer will be the one to be answerable to all D) by then as auditors, KPMG just “express opinion” ONLY
No la.. u guys got it all wrong! This is an opportunity (with risk of course) to get 5-7x return on your investment! Otherwise KWSP KWAP PNB and other SARAWAK GOVERNMENT already dispose all their shares! Think guys think!!!
Ok let's make u a shadow 1 man audit team attempting to audit Serbadks MATERIALS ON SITE
1. For an O&M service provider like Serbadk materials on site comprises?
Kindly provide detailed breakdowns
2. For an O&M service provider like Serbadk is it a fair assumption that the materials on site are located at Serbadks customers premises with only a small part located at Serbadks own premises?
C4) But Serba refused such suggestion from KPMG and labelled that request WAS UNNECESSARY. (Go read yourself on the statement of claim point 58 by Serba over the law suit to KPMG)
You have been acted weirdly all the time in serba forum, if you think yours are right, then right loh….. lol
———-+++++++———- OrlandoOilSemiconIoT R u sure u read tis correctly? C4) But Serba refused such suggestion from KPMG and labelled that request WAS UNNECESSARY. (Go read yourself on the statement of claim point 58 by Serba over the law suit to KPMG) 30/06/2021 8:27 AM
————++++++++——— Glovefinishretard No la.. u guys got it all wrong! This is an opportunity (with risk of course) to get 5-7x return on your investment! Otherwise KWSP KWAP PNB and other SARAWAK GOVERNMENT already dispose all their shares! Think guys think!!! 30/06/2021 7:24 AM
@stockkingdom, no need to respond to these kind of people la, wasting your time. Why? See below.
So many want to hear what they wanted to hear see what they wanted to see
Karim proved to be a cunning man. EY said agreed in principle & set pre-conditions before acceptance, means no acceptance yet la. But Karim said already agreed. What a F.
stock kingdom to interpret tis again carefully tis time
U hv got it wrong again
1. EY need to have full and unfettered access to KPMG PLT for information and confirmation for the purpose of analysing the transactions and concerns highlighted;
Posted by Stock Kingdom > Jun 28, 2021 7:15 PM | Report Abuse
I have never heard one audit firm can have “full and unfettered access” on the working papers of another audit firm. Never in the history locally & internationally.
Some more that one is KPMG.
Haha, forget the appointment.
Some may think what about apply & get court order to command KPMG handover.
but at what basis? Will KPMG just sit quietly & do nothing letting Serba get the order? By then MIA will jump in to defend for KPMG.
———-++++++——— myinvesting I expect it will be rejected by kp&g due to resigned (no more relationship), confidential and suit case (how to give hold harmless?)
————+++++++———- 1. EY need to have full and unfettered access to KPMG PLT for information and confirmation for the purpose of analysing the transactions and concerns highlighted;
However, in light of the recent resignation of KPMG PLT as the Company’s external auditors, EY required assurance that the above requirements remain in place prior to executing the engagement letter and commencing the review, including a written confirmation from KPMG PLT that co-operation in the form of access and information will be provided to EY for the purpose of understanding the alleged irregularities and anomalies identified, such as
I was an auditor before and so also kingdom I believe... on this issue it's understandable that people who were never auditors before get the issues wrong.
There are loopholes here & there in Serba announcements if you read carefully. Beware of it. Ordinary people who are not well trained in legal area will find it no issue.
Auditors are always careful with the words used, the lesser the better. Opposite to lawyer, the more the better, so that you can’t find North :)
————-++++++++———— qqq3333 I was an auditor before and so also kingdom I believe... on this issue it's understandable that people who were never auditors before get the issues wrong. 30/06/2021 11:01 AM
Ok let's make u a shadow 1 man audit team attempting to audit Serbadks MATERIALS ON SITE
1. For an O&M service provider like Serbadk materials on site comprises?
Kindly provide detailed breakdowns
2. For an O&M service provider like Serbadk is it a fair assumption that the materials on site are located at Serbadks customers premises with only a small part located at Serbadks own premises?
Kindly provide detailed breakdowns
30/06/2021 8:11 AM
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Stock Kingdom
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Posted by Stock Kingdom > 2021-06-29 18:28 | Report Abuse
Hardly we see any auditors conduct background investigation or physical checks on client's customers or/and suppliers because:
A5) no need. As long as the audit findings & tests on estimates so far were good & in satisfactory manner
A6) cost (audit industry is not big fat but indeed pity little profit industry)