{
  "id": 3227298,
  "title": "Madinah: Different audit methods led to contrasting AG, PwC findings on TH",
  "url": "https://urgent.news/2026/08/25/madinah-different-audit-methods-led-to-contrasting-ag-pwc-findings-on",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T08:54:59.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/news/nation/2026/08/1518550/madinah-different-audit-methods-led-contrasting-ag-pwc-findings-th"
  },
  "original_language": "en",
  "account": "Former auditor general Tan Sri Dr Madinah Mohamad has stood by the audit of Lembaga Tabung Haji (TH), asserting that its findings diverged from a subsequent PricewaterhouseCoopers (PwC) review due to differing methodologies. Madinah clarified that the audit adhered to the Audit Act and Tabung Haji Act, aiming to ascertain whether TH's financial statements provided a true and fair view in line with Malaysian Financial Reporting Standards (MFRS), specifically MFRS 139. Conversely, she explained that PwC's review was a Financial Position Review, a special assignment with distinct terms of reference and a more extensive assessment of TH's financial standing. This broader approach entailed a different methodology for recognizing impairment compared to a statutory audit, leading to discrepancies in the final figures reported. The audited statements disclosed a net profit of approximately RM3.4 billion, whereas PwC's review indicated a loss of about RM1.4 billion. The variance stemmed from disparities in methodology and the approach to impairment recognition and valuation of investments, particularly concerning subsidiaries and associates along with investment assets. At the Musyawarah Nasional 2.0 Forum, Madinah urged consideration of the Financial Reporting Standards Implementation Committee (FRSIC) Consensus 14 within its proper context, noting that PwC utilized it as a basis for adjusting TH's financial statements in submissions to the Malaysian Institute of Accountants (MIA). She emphasized that FRSIC Consensus 14 is not an MFRS with mandatory force but rather consensus-based guidance to aid in applying standards under specific circumstances. However, she highlighted that its applicability to a statutory body like TH remains debatable. Following the 211-page Royal Commission of Inquiry (RCI) report, which identified accounting practice weaknesses resulting in TH reporting a RM3.4 billion profit in 2017 instead of the reported RM1.4 billion loss, Madinah's comments came to light. The RCI's findings corroborated PwC's independent review, revealing TH's financial position to be significantly weaker than disclosed, underscoring TH's operating deficit since 2014 due to failures in recognizing impairment losses, failing to account for declines in investment property fair values, and improperly declaring hibah without considering full impairment impacts. The commission attributed TH's inflated financial position to recording dividend income from non-received subsidiaries.",
  "summary": "KUALA LUMPUR: Former auditor general Tan Sri Dr Madinah Mohamad has defended the audit of Lembaga Tabung Haji (TH), saying its findings differed from a subsequent PricewaterhouseCoopers (PwC) review because the two used different methodologies.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "RM4.8 bilion beza laporan bukan bukti audit TH gagal, kata Madinah",
        "url": "https://urgent.news/2026/08/25/rm4-8-bilion-beza-laporan-bukan-bukti-audit-th-gagal-kata-madinah",
        "published": "2026-08-25T05:14:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}