1MDB: The Audit Firms’ Questions

Abstract

The 1Malaysia Development Berhad (1MDB) has had three auditors since it started its operation several years ago. The issues of interest are related to the subject matter of auditor switching and the audit failure allegations made against its two latter auditors: KPMG and Deloitte. When it concerns Deloitte, it was accused of hiding 1MDB’s insolvency. As for the KPMG, it was accused of failing to expose the allegedly suspicious transactions between 1MDB and its joint venture partner Petrosaudi International Limited (PSI) to the relevant authorities. As for the auditor switching from KPMG to Deloitte, questions arose on the reasons for and its timing.