How do you explain the customer address could not be found? Usually auditor will not physically check on customer unless they sense something suspicious. We are talking about million dollar transaction. Fabrication yard cannot be a home address or a kedai runcit right?

@Dennis& Sure win, thanks for your well explaination. Maybe you could explain to us how the accounting records (balance sheet, cash flow, p&l) on directly payment from supplier to customer and how it affects sb's financial statement since you are in the line. Many thanks

Yup, high receivable maybe is normal for oil and gas company, but the problem is KPMG point out their customer/supplier info is wrong (maybe they are not exist), so now you know what is the problem? So you as a senior commercial executive but you can’t see what is the problem they facing?

It is a public listed company we are talking about here. Not a kedai runcit or sdn. bhd. Serba Dinamik has CFO and ex CFO in the company. Explanation to why customer or supplier address is either house, supermarket or labor accomodation is they have moved out. So all this while, your invoices are sent to house, supermarket or hostel? Customer never notify you on the address change? Accounting system did not administer the change?

Why need to know technically? As a ex staff of EY i know how audit works and definitely i can smell smtg fishy when see what company reply to query. Auditor usually will send empty balance to debtor to fill in and now company fill themselves then say other 11 reply? Come on

just go and study enron case. u will find out interesting and similarity part:

Enron Scandal Causes

The creation of a special purpose vehicle for concealing financial losses and a pile of financial debt;

Mark-to-market accounting as an accounting concept is an excellent method to value securities, but such a concept becomes a disaster when applied to the actual business.

Lapse of corporate governance in Enron Corporation.

I am working in US public listed oil and gas company. There is a process on contract governance. Prior to signing of contract with customer, credit team would request for supporting documents from customer and perform a background check if the company is financially strong to pay the contactual value. Else, it will go into bad debts. For vendors, there is also similar process performed by procurement. You cannot simply just tell ppl they move out or what. Get real.

stop claiming yourself to be who who who. EY la auditor la apa professional la. if all of u were so pro there's no need for u to fake an account in klse forum just like me already. very funny of u guys

@dennis, i'm respect you as an expertise in o&g but please be understand that this is not only an operation issue but also involved accounting, risk management and corporate governance which you are not expert in. Or you are also involved in such transactions in ur company so that you are understand these transactions? Then it will be another serious conflict of interest issue in ur company.

Anyway, I won't say i'm expert on wat, just telling the facts.

@Stephen, auditors can be of different levels. Auditors career can be short lived. Most auditors would move to corporate after acquire some experience from audit firms. Also possible, ex EY staff is retired or he or she already have enough wealth from investment that they dun need to work dy. Not all are salaried professionals.

another funny guy popping out, why must I listen to anyone in this market? if I don't listen to ex experienced auditor then I must be the one following sifu la? ur comment really funny. not to say what. at least those sifu live to show face rather than all those keyboard warrior hiding here

Anyway, what will the company be is not our to comment about, let sc to judge.

You wan to invest is ur matter, you wan to speculate is your money. what it will be, let the time tells. Good luck!

Maybe you facing a problem to read English, I say so is because you just simply say shit to profession and I did not say ppl that not listen to profession is all follow sifu a, how you understand it from my comment, aiyo

@stephen If im not mistaken u came in to comment after me, should be u took my comment seriously so u came in and reply to me. Seems that u also having problem to recall things happens just half an hour away. Better go for a medical check up possible Alzheimer.

I don like to communicate with those unpleasant people who like to do personally attack on others. Their behavior reflect how low is their personality. If you like to make rubbished remarks and jokes I can joint you all but not personal attacks. This don make the share up or down.

Ya, KPMG not small. In fact Serba CFO was from KPMG. Ppl are asking why raise queries only now and not before. I checked with a friend who got contacts. This is the reason why. In the past, all audits was performed by KPMG staff in Sarawak. This round KPMG sent their auditors from KL with more stringent audit procedure. Yes, usually, auditor will ask for vendor or customer to sign documents. However, if it goes to the extent to check the physical address whether it exists means it is serious dy.

Oil and gas project payment is usually paid by milestone as per contract. Unless you are talking about sales of ready stock equipment in inventory with low value. With billion dollar project, it is unlikely that you allowed payment upon completion.

I don like to communicate with those unpleasant people who like to do personally attack on others. Their behaviors reflect how low is their personality. If you like to make rubbished remarks and jokes I can joint you all but not personal attacks. This don make the share up or down. My previous job is only answerable to our managing director and marketing director.. Our company is an international corp. Commercial Department is sub divided by different departments namely : Namely Finance dept which in charge of all payments, Billing dept in charge of customer invoices, Tender Dept in charge of of all type of repair and conversion enquiry and tenders submission, Sub-contract Dept in charge with sub-contractors tenders ,award and analysis of their bills and lastly Engineering design office complete legal office.

纯粹和Denise 吹水,写中文可以吧,鸡肠不是很会…….我的小公司去年也碰过什么都不懂的big 4auditor…..auditor都是读死书,对行业一窍不通,很多问题都是笑死人,当我是上市公司来查,问的都是弱智的问题,我觉得要和auditor收费,教了他很多…….我是小公司,今年换了auditor,来了个有经验,什么问题都没了……我发现big4可能要省钱,来的auditor都是年轻什么都不会的,我记得还要查我的pay interest 有问题,我和他说是的我和银行串通给多了interest来逃税lol…….我是trader，进进出出蛇怕多次,赚点小钱,现还持有一点0.625的票……..投资看路,不是要洗白蛇怕,只是不爽当autitor是神,不吐不快…….

When u r working for a business or invest in a business, do your due diligence on how the company operate. All stakeholders play a role. Look at the whole supply chain and OTC process - Opportunity (from bidding) to Cash (you receive payment). Auditors pay attention to details. Contract terms, when u deliver, when u bill, check dates on documents, etc.

肥佬，所以我说 那些b4的 auditing company 并不能代表他是熟悉那行业的来龙去脉和工程的细节。有些工程不是照单完成的，肯定会有些附加的工程需要另外收钱，这就是每一账目纠纷的主要原因。
至于账目的来往，通常是靠银行户口号码和公司的名称，你说是吗？ 又有谁去看地址...lol. 莫明其妙。 肥佬，你说是吗？
你去银行拿支票钱，他们有要你写你的地址吗？...lol. 简直是胡闹!

Just enter a bit to bet on KPMG lose the fight. Win or lose in this tussle will definitely has a big impact on the reputation of both parties SD and KPMG especially the later as KP already had a "not so good" reputation on handling of 1 MBD for 3 years and a few years here in SD. To me ,at the pandemic period, KP"s sudden change of action is very very fishy. What is the motives behind this, after so many years dealing with SD ? Is anything to do with the shares ? Or somebody in KP is betting heavily on this shares and ...?? There are question marks every way .....lol.

I dont see anything wrong with SB with no loss in the past and current manageble debt. Its just not right to say a 20 years of profitable company making such silly mistake(invoice with address) to make it look more profitable when it is proven profit company. Unless there is something wrong in the audit proccess.

Check their record. Its always profit even before listed in klse.

Ya, so you point out the main point already, a listed company try to fake it have a high profit, so the stock price also will up. Of course it is illegal, so you expect a outcome of fake accounting is legal? I am not saying serbadk have a fake accounting, since it still under investigate, but just answering your question.