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