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PETALING JAYA: The Federal Court has unanimously ruled in favour of the Securities Commission (SC) and dismissed the application for leave to appeal by audit firm Afrizan Tarmili Khairul Azhar (AFTAAS) and its partners, namely Datuk Mohd Afrizan Husain, Tamili Dulah Kusni and Khairul Azahar Ariffin.

In a statement yesterday, the SC said the decision reflected the seriousness of the breaches and reinforces the robustness of the SC’s Audit Oversight Board’s (AOB) enforcement framework.

“AFTAAS was also ordered to pay costs of RM30,000 to the SC. AFTAAS and its partners were sanctioned by the AOB for several breaches involving non-compliance with the auditing standards on fundamental and basic audit procedures during the inspection period between Feb 14 and March 5, 2019.

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The SC said the AOB also found that some of the findings were recurring from the AOB’s previous inspection on the auditors, raising concerns on their capacity and capability.

The firm and its partners were prohibited from accepting as clients and auditing public interest entities or scheduled funds for a period of 12 months.

In addition, the AOB also imposed fines of RM455,000 on AFTAAS and RM88,000 each on Mohd Afrizan and Khairul respectively.