Page 160 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

As part of an audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing, we exercise professional judgment and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the SC, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the internal control of the SC.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board Members.

• Conclude on the appropriateness of the Board Members’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of the SC to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements of the SC or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditors’ report. However, future events or conditions may cause the SC to cease to continue as a
going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the SC, including
the disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

We communicate with the Board Members regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

other Matter
This report is made solely to the Board Members, as a body, and for no other purpose. We do not assume
responsibility to any other person for the content of this report.

KPMg PLT Loh Kam Hian
(LLP0010081-LCA & AF 0758) Approval Number: 02941/09/2020 J
Chartered Accountants Chartered Accountant

Petaling Jaya, Malaysia
Date: 30 January 2019

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