How did the Auditor-General justify her approach to the 2017 audit?

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Auditor-General Justified 2017 Audit Approach Based on Standards and Evidence

Former Auditor-General Tan Sri Madinah Mohamad defended her handling of Lembaga Tabung Haji's (TH) 2017 accounts by stating that the inclusion of two Emphasis of Matter (EOM) paragraphs was intended to highlight material issues identified during the audit. She asserted that her decision-making process adhered to international auditing standards, and a qualified audit opinion would only have been issued if the specific criteria for such a designation were met, based on the audit evidence gathered.
Emphasis of Matter Paragraphs Highlighted Key Issues

The RCI report into Lembaga Tabung Haji noted that the 2017 audit opinion for TH's financial statements included two Emphasis of Matter (EOM) paragraphs. These paragraphs are typically used in audit reports to draw the attention of users to disclosures or matters that are fundamental to the users' understanding of the financial statements. Madinah explained that these EOMs served precisely this purpose, pointing to significant matters that required specific attention.
Adherence to International Auditing Standards

Madinah stated that her approach to the 2017 audit was guided by international auditing standards. She maintained that the decision to issue an unqualified audit opinion, despite the presence of the EOMs, was based on the audit evidence obtained. This evidence did not, in her assessment, meet the criteria that would necessitate a qualified opinion, which signals a material misstatement or scope limitation.
RCI's View on Qualified Opinion

The Royal Commission of Inquiry (RCI) report, however, suggested that the issues highlighted by the EOMs in the 2017 audit warranted a qualified opinion. Such an opinion would have formally indicated that there were material problems with specific parts of TH's accounts, potentially providing a stronger signal of financial concerns to stakeholders than the EOMs alone.

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How did the Auditor-General justify her approach to the 2017 audit?

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