Bangkok, 8 October 2019 – The SEC has imposed a two-year suspension on capital market auditor Ms. Patamavan Vadhanakul, an audit partner of KPMG Phoomchai Audit Ltd., for performing audit work on the financial statements of Nation Multimedia Group Public Company Limited (NMG) for the year 2015 and 2016 with deficiencies and non-compliance with the auditing standards.
The suspension was in connection to NMG’s submission of the financial statements for the year 2017, wherein the overstatement of revenue and accrued income in the financial statements for the year 2015 and 2016 were restated because fictitious revenue had been recorded.
The SEC reviewed Patamavan’s engagement performance as NMG’s auditor and found that she failed to obtain reliable evidence that was sufficient and appropriate with regard to the audit of the revenue and the accrued income which were material to the financial statements, causing her to fail to detect the fictitious revenue and accrued income in the financial statements for the year 2015 and 2016 and resulting in her expressing an inaccurate audit opinion on the said financial statements.
Due to her deficiencies, the SEC has suspended the approval for Patamavan as capital market auditor. However, she has resigned from the position since 22 March 2019. The SEC therefore will not accept her future application for approval as a capital market auditor for a period of two years, starting from 8 October 2019. The SEC has also advised KPMG to conduct a root cause analysis on Patamavan’s performance deficiencies and lay out a remediation plan to prevent recurrence of similar incidents. In any case, the detected deficiencies will be considered in detail when the SEC reviews KPMG’s audit quality control system.
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