Malaysian Development Berhad Fund Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Malaysian Development Berhad Fund Case Study Solution

Furthermore, KPMG and Deloitte, who were the auditor of 1 Malaysian development Fund for the period from 2009 to 2014, did not respond on the statement of South China Morning Post report which mentioned that the regulator said that “these international auditors assisting the 1 MDB fund in the scandal or merely negligent” (channel news asia, 2019). Therefore, this ignorance of such a huge allegation on the international auditor also provides an indication that they were either negligent or involved in aiding and abetting in money laundering activity of 1 Malaysian development fund. Moreover, the international auditors faced difficulty in auditing 1 MDB Fund and were not provided with the relevant document by the fund which are required for auditing. However, this dubious behavior of the company should be reported by the auditing firm to the regulator. Therefore, not reporting to the regulators and later on stated by the audit firm that they have informed the company and posted on their website appears to be a dubious act by the international auditing firm and therefore the auditors could be implicated of aiding and abetment of money laundering activities in the 1 Malaysian Development Berhad Fund case.

Question 3

The defense that can be used by the KPMG and Deloitte for their alleged involvement in the 1 Malaysian Development Berhad Fund is that the document were hidden by the firm from auditors.The auditors stated in the letter to the company that the unavailability of reports by the 1 MDB fund could result in material impact in their assessment of 1 Malaysian Development Fund(channel news asia, 2019). Moreover, when KPMG was terminated by the 1 Malaysian Development Fund, it has stated on his website that KPMG had not completed the audit of 1 Malaysia Development Fund for the year ended March 2013(Chong, 2018). Furthermore, declassified auditor general report states caution to some of the transactions of the 1 MDB fund which deviated from its normal routine of operational activities and the audit teams were not provided with the access to the notebooks, computers and servers of the 1 MDB fund.

The above statements by the audit firms and the resistance of the 1 Malaysian Development Fund in providing details and documents about the operational and business activity conducted can be used as a defense by the KPMG and Deloitte in proving themselves that they are not involved in the money laundering activities of the 1 Malaysian Development Berhad Fund which is justified by their statements.............

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