It said that Sharinah Mohamed Iqbal, a partner at PKF Malaysia, failed to comply with international standards when auditing a public interest entity (PIE).

According to AOB, she had breached Section 31Z(1)(b) of the Securities Commission Malaysia Act 1993.

In a statement, it said compliance with these auditing standards is a condition of registration for all AOB registrants.

“As the engagement partner responsible for the audit of the PIE, Sharinah had failed to perform sufficient audit procedures and obtain sufficient evidence to support the opinion in relation to the PIE’s ability to continue as a going concern.”

AOB said she failed to follow up on the status of the entity’s bank loan and seek further audit evidence to support her conclusion on the entity’s ability to repay its bank borrowings.

“She also failed to perform quantitative assessment to assess the PIE’s tight cash flow position and its ability to fulfil all its commitments and obligations.

“Sharinah did not file an appeal against the AOB’s decision within the prescribed time,” it added.