The operating atmosphere and sector outlook are the root cause of the unqualified audit opinions given by external auditors on several listed companies recently.
KPMG PLT, Audit Partner, Lee Yee Keng said the group expects uncertainties to prevail as industry players continue to adapt to the new norm.
She said most industries had to regroup and reset as the pandemic has raised certain risks that were not considered significant in the past. Assessment of going concern of entities is an area that auditors will focus on.
"The Movement Control Order and the already dampened economy have resulted in cash constraints and less visibility of future performances, raising concerns over the ability of companies to fulfil their obligations as and when they fall due. "Gathering audit evidence is challenging given the restrictions on movement and standard operating procedure on distancing," she added.
Hence, among action required by management is to update forecasts and sensitivities as considered appropriate, as well as take into account the risk factors identified and the different possible outcomes.
Click here to read the full article published in The Malaysian Reserve.
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