KUALA LUMPUR: KPMG has resigned as the external auditor of Serba Dinamik Bhd with immediate effect.

Serba Dinamik, in its filing with Bursa Malaysia today, said it had received a notice in writing for the auditor's resignation yesterday (June 23).

The company said KPMG had in the notice stated that the suit filed by the former on June 22 against it in regard to the ongoing statutory audit for the financial period ending June 30, 2021 had compromised its ability to independently continue the audit engagement.

"This suit has also discharged KPMG's professional duties as auditor of the company," the letter said. 

Serba Dinamik said it was identifying the new auditor.

"We will make an immediate announcement to this effect immediately upon the finalisation of appointment of the new auditors," it said.

On June 22, Serba Dinamik took legal action against KPMG, claiming for substantial damages for alleged negligence and breach of contractual and statutory duties.

KPMG recently flagged audit issues across more than RM3.5 billion in transactions and bills for the financial year ended December 31 2020 (FY20).

Serba Dinamik said it had been at an impasse with KPMG towards the completion of the statutory audit.

The impasse had resulted in a significant drop in its share price and overall market capitalisation, the oil and gas services company said.

https://www.nst.com.my/business/2021/06/701806/kpmg-resigns-serba-dinamiks-external-auditor