In a statement today, SC said GTM and Heizrin were fined RM150,000 and RM37,500, respectively.

According to SC, Heizrin, who served as both the engagement partner and quality reviewer on the audit of a public interest entity (PIE) from 2013 to 2017, had failed to observe the mandatory cooling-off period of three consecutive years.

The statement added that Heizrin stayed involved in the audit beyond 2017 for more than seven years, which violates the by-laws under the Malaysian Institute of Accountants. Under the relevant by-laws, an audit partner’s involvement is limited to a maximum of seven years.

“The AOB views the breach seriously as auditors’ independence and compliance with ethical standards are fundamental requirements for the audit profession,” it said.

SC also said GTM was found to have failed to meet the International Standards on Quality Management (ISQM) 1, in particular, pertaining to ethical requirements and audit independence.

“GTM and Heizrin had appealed to the SC against the AOB’s enforcement action. The SC heard the appeal and after due process, affirmed the AOB’s decision,” it added.