Monday, October 10, 2011

Court rules in SC favour over AOB's registration of PwC

KUALA LUMPUR: The Court of Appeal has ruled in favour of the Securities Commission (SC) on the Audit Oversight Board's (AOB) registration of PricewaterhouseCoopers (PwC) in April 2010 under the Securities Commission Act 1993..

The SC said on Monday, Oct 10 the Court of Appeal had upheld the High Court's decision in its dismissal of Ramesh Chelliah's application for leave to commence judicial review proceedings against the AOB's registration of PwC.

The Court of Appeal was presided by Datuk Nihrumala Segara A/L M.K. Pillay, Datuk Alizatul Khair Osman Khairuddin and Datuk Wira Mohtarudin Baki.

To recap, in May 2011, the High Court dismissed Ramesh's application for leave. High Court judge Justice Datuk Rohana Yusuf agreed that there were flaws in the application and that the applicant did not have the locus standi to commence judicial review proceedings.

The High Court also ordered the applicant to pay costs to the Attorney General's Office and the SC.

The AOB was set up in 2010 to protect investor interests and promote confidence in the quality and reliability of audited financial statements of public interest entities (PIEs) which include public listed companies, licensed intermediaries, institutions licensed under the Banking and Financial Institutions Act 1989 and insurance companies under the Insurance Act 1996.

Since January 2011 to September, the AOB had inspected 14 audit firms auditing 52% of the number of PIEs, which represents 65% of the PLCs, based on market capitalisation. The AOB would also continue to inspect audit firms and to monitor the progress of remediation measures identified.

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