Andersen Malaysia faces lawsuit

Andersen Malaysia faces lawsuit

KUALA LUMPUR: The Malaysian unit of beleaguered accounting giant Arthur Andersen faces a 350-million-ringgit (US$92 million) lawsuit for alleged oversights while auditing publicly-listed CSM Corp. and its two subsidiaries, news reports said Tuesday.

CSM, CSM Capital and CSM Properties are claiming that Andersen, the group's auditor in 1998-2000, failed to detect irregularities in the accounts of the three companies, The New Straits Times daily said.

Andersen issued a statement Monday, countering the allegations. "We have carried out our professional duties in compliance with approved auditing standards in Malaysia. We have instructed our solicitors Messrs Shearn Delamore and Co. to vigorously defend the proceedings and to vindicate our reputation," the firm said.

Andersen Malaysia completed its merger with Ernst and Young Malaysia in June. --DPA