Following a complaint filed against Deloitte over the 1MDB saga, the focus has now turned to Prime
Question:
Following a complaint filed against Deloitte over the 1MDB saga, the focus has now turned to Prime Minister Najib Abdul Razak’s son, who is a partner at the international audit firm. Nizar Najib is an executive director, financial advisory services (FAS) with the firm which has drawn flak over its handling of the 1MDB accounts. Commenting on this, PKR vice-president Rafizi Ramli, a fierce critic of 1MDB, raised the issue of possible conflict of interest.
“It is a matter of time before the public figures out that Najib's first son - Nizar - is a partner at Deloitte (albeit in a different business unit).
“The issue is whether it is publicly and professionally acceptable for Deloitte to accept the appointment as auditors for 1MDB when there is a serious risk of conflict of interest (at least perceived by the public) arising from this situation,” he told Malaysiakini.
(Note: PM Najib Abdul Razak was the Chairman of 1MDB at that material time.
Nizar Najib started out in Deloitte Consulting, started from the bottom and worked himself up. He has been with Deloitte more than 10 years ago before the appointment as 1MDB auditors)
Required:
Based on professional ethics and client acceptance or continuance:
- Should Deloitte accept the appointment of an auditors in the first place? Discuss based on the principles of ethics before considering public outcry, opinion or hearsay
- How can Deloitte avoid the public outcries and accusations in the first place before accepting the appointment as 1MDB auditors?
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt