Scrutiny of audit work on Hyflux important to credibility of disclosure-based regime

EVER since Hyflux filed for bankruptcy in May 2018, questions have been raised about how the water treatment firm passed the smell tests to secure a clean bill of health from independent auditor KPMG just two months prior.

Last week, the Accounting and Corporate Regulatory Authority (Acra) said that it is inspecting the audit work done by KPMG for Hyflux as part of a larger probe into Hyflux's compliance with accounting and auditing standards over the period from 2011 to 2018.

The regulatory attention is heartening as many concerning details of the case remain unresolved.