In a press statement, the SC said Yean had failed to comply with the relevant International Standards on Auditing (ISA), particularly regarding the valuation of goodwill.

“Yean had failed to challenge the key assumptions used for the financial projections and assess the appropriateness of the expert’s work as audit evidence in auditing management’s impairment assessment of goodwill,” the statement read.

Auditors who register with the AOB are required to adhere to auditing standards when conducting audits of public interest entities’ financial statements, said the regulator.

The AOB emphasised the importance of conducting a thorough impairment assessment of goodwill, particularly in the context of economic uncertainties and a rapidly changing business environment.

Therefore, it insists on the exercise of due diligence and the application of sound judgment in this regard.

“Thus, the AOB would not hesitate to take action against the auditors for non-compliance with the auditing standards and registration conditions,” said the SC.