KUALA LUMPUR (Nov 1): Khee San Bhd has appointed Messrs Kreston John and Gan to re-audit the group’s audited financial statement for the financial year ended Jun 30, 2015 (FY15) and FY16.

In a filing with Bursa Malaysia, Khee San said this is in compliance with sanctions imposed by the Securities Commission Malaysia (SC).

The group also said PKF Advisory Sdn Bhd has been appointed as the independent consultant to assess the effectiveness of Khee San’s Audit Committee.

However, due to the changes in the composition of the group’s audit committee as announced on Sept 13 this year, Khee San said its audit committee has been duly reconstituted with the appointment of new committee members.

Khee San said Kreston John and Gan have also been appointed as the external auditor to conduct an assessment of the scope, functions, competency and resources of the group’s financial reporting function.

“In addition, PKF Advisory has also been appointed to conduct an internal control review of Khee San, which shall include an assessment of the financial reporting functions,” it said. 

In May this year, SC reprimanded Khee San Bhd and its directors for failing to comply with approved accounting standards within FY15 and FY16.

Given the seriousness of the breach, the SC has imposed a total fine of RM1.86 million on the directors.

The SC sanctions arose as a result of its findings that Khee San had failed to comply with the relevant Malaysian Financial Reporting Standards extended to various distinct areas within FY15 and FY16.

The SC has also directed Khee San to rectify and re-issue its audited financial statements for FY15 and FY16, and for Khee San to appoint an external auditor to re-audit the financial statements for both years.

Based on findings from the re-audit of both years' financial statements, Khee San is to rectify and re-issue the audited versions of the same, as well as all quarterly results and audited financial statements issued subsequent to its FY16 audited financial statements.

Khee San has also been asked to seek appropriate independent professional advice to reconstitute an effective audit committee.

Khee San closed unchanged at 58.5 sen today, giving it a market capitalisation of RM60.84 million.