Ng Yee Hong (19644) as the auditor of 1Malaysia Development Berhad (‘1MDB’) for the financial year ended 31/3/2013 and 31/3/2014 (‘FYE’) had been punished and imposed a suspension of 2 years effective 1/6/2025 and fine of RM5000-00 by the DC of the Institute on 21/4/2025 for he had failed to discharge his professional duties with due care and diligence during the audits of 1MDB for the said FYE in which he had:
- failed to conduct sufficient and necessary due diligence and audit of the cash flow and liquidity risk of 1MDB in which he had signed and endorsed 1MDB as a going concern on 5/11/2014 despite the company facing an imminent liquidity crisis, as exposed before the end of the month when it was unable to repay its RM 2 billion debt;
- failed to conduct sufficient and necessary due diligence and audit of 1MDB’s ‘Level 3’ assets; and
- failed to report the highly dubious and potentially fraudulent transactions in 1MDB to alert the relevant authorities in accordance with ISA 240 “The Auditors’ Responsibilities Relating to Fraud in an Audit of Financial Statements”.
