QUESTION

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has confirmed that the Malaysian government has agreed to a settlement of US$80 million (RM324 million) with Deloitte PLT in relation to the 1Malaysia Development Bhd (1MDB) scandal. He said the settlement served to resolve all claims related to their fiduciary duty on auditing the accounts of 1MDB and SRC International Sdn Bhd for the 2011-2014 period (TheEdge, 2021)

REQUIRED:

Based on the above statement, you are required to prepare a presentation by discussing the following:

• The expectation gap
• Reasons of Deloitte failing to discharge its statutory obligations in 1MDB scandal.
• Lessons that could be learned from 1MDB scandal (discuss from the perspective of external auditor)