The Financial Reporting Council (FRC) has issued a final decision notice under the Audit Enforcement Procedure and imposed sanctions against UHY Hacker Young LLP and audit engagement partner Julie Zhuge Wilson, in relation to the statutory audit of the consolidated financial statements of Inch Kenneth Kajang Rubber plc for the 2016 audit although the regulator stopped short of handing out financial penalties. However, the firm will have to pay the legal costs for FRC’s executive counsel, amounting to £146,752.

The IKKR Group is engaged in rubber manufacture, tourism, construction and property development/leasing. At all times relevant to the FY16 audit, its operations were entirely based in South East Asia, primarily Malaysia. Whilst its registered office was in Scotland, the activities of the parent company were minimal and the operational and financial management of the IKKR Group was also based in Malaysia. UHY had audited the company since 2007.