KUALA LUMPUR: Ernst & Young (E&Y) said it is not the auditor of Lembaga Tabung Haji (TH) and has not issued any “audit report” in respect of the financial statements of TH.
In a statement, E&Y said it did not review TH’s income statements nor was it involved in the valuation of TH and its subsidiaries’ assets and liabilities.
E&Y was making the clarification in reference to media reports today.
E&Y said it was engaged by the directors of TH to report on whether the pro forma balance sheets as at Dec 31, 2015; Dec 31, 2016; and Dec 31, 2017 had been properly prepared based on the applicable criteria.
“The directors of TH prepared the pro forma balance sheets solely to illustrate the impact of reporting TH’s investments in equities, securities and properties at realisable asset value instead of historical costs on its balance sheets.
“E&Y did not perform an audit on the financial information used in compiling the pro forma balance sheets,” it said.
The accounting firm said it reported that the adjustments made were appropriate solely for the purpose of illustrating the impact of reporting TH’s investments in equities, securities and properties at realisable asset value on TH’s balance sheets.
“E&Y’s reports could not have been relied upon for the purpose of dividend declarations by TH on Feb 4, 2016; Feb 3, 2017; and Feb 7, 2018 for the financial years ended Dec 31, 2015, 2016 and 2017 respectively, as E&Y’s reports for the relevant years were only issued subsequent to the dividend declaration dates.
“E&Y issued its reports on Sept 30, 2016; July 12, 2017; and May 23, 2018 in respect of the pro forma balance sheets as at Dec 31, 2015, 2016 and 2017 respectively,” it explained.
“At no time did E&Y opine on the appropriateness of the declaration of distributable profit as dividend pursuant to the Tabung Haji Act 1995,” it added.