Disciplinary orders / Determination

Order Date
Name/
Relevant sub-sections of the PAO
Nature of complaint
Sanction
6 December 2016

So Kin Po
(ENG)

(CHI)

Convicted of an offence involving dishonesty.

 

So submitted falsified documents in his application to the Continuing Education Fund of the Hong Kong Government ("CEF") for reimbursement of the Qualification Programme course fees. The CEF office discovered the falsified documents and reported the matter to the police.  So was convicted in the Magistrates' Courts for fraud.

Order:
Removal from the register of CPAs for 5 years with effect from 17 January 2017


Penalty:
-


Cost:
HK$88,326.3


Extract of Reasons and Order

12 October 2016

Wong Wing Hong
(ENG)

(CHI)

Wong, as the engagement partner, failed to act diligently in accordance with section 100.4(c) as elaborated in section 130.1 of the then applicable Code of Ethics for Professional Accountants because the firm, of which he was formerly a partner, failed or neglected to observe, maintain or otherwise apply a number of auditing standards in an audit of the financial statements of a Hong Kong listed company and its subsidiaries.

Order:

Reprimand; and
Practising certificate shall not be issued to him for 2016 and 2017


Penalty:
HK$60,000


Cost:
HK$24,730

 

Extract of Reasons and Order

12 September 2016

1)Yuen Suk Ching
2)Leung Tai Keung
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute. 
The 1st Respondent was in breach of HKSA 700 Forming an Opinion and Reporting on Financial Statements and HKSA 500 Audit Evidence.  The 2nd Respondent was in breach of HKSA 220 Quality Control for an Audit of Financial Statements.


The complaint concerned deficiencies in the audit work carried out on an investment in two convertible bonds recorded in the financial statements of a Hong Kong listed company.

 

Order:
Reprimand


Penalty:
1st Respondent
HK$70,000

2nd Respondent
HK$50,000

 

Cost of HKICPA
HK$36,055

 

Cost of FRC
HK$18,068.60

 

Extract of Reasons and Order

20 September 2016

Chow Chi Hing
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply the fundamental principle of professional competence and due care under section 100.5(c), as elaborated in section 130 of the Code of Ethics for Professional Accountants.

 

Chow practiced in his own name and issued an auditor's report on the financial statements of a private company for the year ended 31 December 2011.  The auditor's report did not include a modified opinion in respect of the Company's failure to disclose a material amount owed to a director and payments to directors as related party transactions in the financial statements.

Order:

Reprimand


Penalty:
HK$15,000


Cost:
HK$60,021

 

Extract of Reasons and Order

11 August 2016

Ng Kwong Sang
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply HKSQC 1 and the fundamental principles of integrity and professional competence and due care under sections 100, 110 and 130 of the Code of Ethics for Professional Accountants.

 

The complaint arose from findings of a practice review visit on the Respondent's Practice. The Respondent was found to have failed to establish, maintain and document an effective system of quality control in respect of monitoring and provided false or misleading answers in the electronic self-assessment questionnaire.

Order:
(a) Reprimand; and
(b) Cancellation of practising certificate with effect from 22 September 2016 and no practising certificate shall be issued to him for one year.

 

Penalty:
HK$65,000
 
Cost:
HK$26,123

 

Extract of Reasons and Order

9 August 2016

Au Yeung Keung, Steve
(ENG)

(CHI)

Guilty of dishonourable conduct. In 2002 to 2003, the Respondent was the General Manager - Financial and Commercial Affairs and Company Secretary of a Hong Kong listed company. He knowingly made or assisted in making misrepresentations or misleading statements to the Stock Exchange of Hong Kong Limited that an investment project in a gas pipeline business in 2002 was a genuine one when he knew that it was not. He also participated in the subsequent sham disposal of the project in 2003.

Order:
Removal from the register of CPAs for 3 years with effect from 18 September 2016


Penalty:

N/A


Cost:
HK$200,000

 

Corrigendum


Extract of Reasons and Order

28 July 2016

Lam Kin Kun, Arthur

(ENG)
(CHI)

Failed or neglected to comply with a direction issued by the Practice Review Committee ("PRC") under section 32F(2)(b) of the Professional Accountants Ordinance.

Order:
Cancellation of practising certificate with effect from 6 September 2016 and no practicing certificate shall be issued to him for twelve months

 

Penalty:
N/A


Cost:
HK$37,648

 

Extract of Reasons and Order

20 June 2016

Wu Kit Man, Athena
(ENG)

(CHI)

Conviction of an offence involving dishonesty. The Respondent was convicted of theft in Hong Kong for having taken cash belonging to another person from an ATM machine.

Order:
Reprimand
 
Penalty:
HK$5,000
 
Cost:
HK$28,211

 

Extract of Reasons and Order

 

21 April 2016

 

Sek Wai Tong, Stonely
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply HKSQC 1 and a number of other professional standards.

 

The complaint arose from findings of the follow-up practice review visit on the Respondent's Practice.  The Respondent was found to have continued to fail to implement an adequate system of quality control and address audit deficiencies which were identified in the previous practice review. 

Order:
Reprimand
 
Penalty:
HK$50,000
 
Cost:
HK$34,672

 

Extract of Reasons and Order

8 March 2016Chan Ying Kit
(ENG)
(CHI)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard of Auditing ("HKSA") 500 Audit Evidence and HKSA 700 Forming an Opinion and Reporting on Financial Statements.

 

Chan audited the financial statements of two Hong Kong private companies for the period ended 31 December 2010.  In one of the audits, Chan failed to obtain sufficient evidence for a material expenditure.  In the other audit, he failed to assess the adequacy of financial statement disclosure and obtain sufficient evidence to conclude the financial statements were free of material misstatements, regarding investments in two subsidiaries.

 

Order:
Reprimand
 
Penalty:
HK$50,000
 
Cost:
HK$96,158.60


Corrigendum


Extract of Reasons and Order

3 February 2016

Chan Bing Chung

(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply paragraphs 100.4(c) and 130.1 of the Code of Ethics for Professional Accountants for failure to act diligently when carrying out the work as an engagement quality control reviewer ("EQCR") in the audit of the 2009 financial statements of a Hong Kong listed company.


The company failed to correctly account for issued share options in its 2007, 2008 and 2009 financial statements in accordance with International Financial Reporting Standard 2 "Shared-based Payment".

 

(Respondent is appealing the order of the Disciplinary Committee.)

Order:
Cancellation of practising certificate with effect from 14 March 2016 and no practising certificate shall be issued to him for 9 months.

 

Penalty:
HK$50,000


Cost:
HK$125,966.7 (including FRC costs)

 

Extract of Reasons and Order

31 December 2015

1) Leung Kam Man Victor
2) WB CPA Limited
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply the Corporate Practices (Registration) Rules, Hong Kong Standard on Auditing 230 and 500, sections 130 and 440 of the Code of Ethics for Professional Accountants and guilty of professional misconduct.


The 2nd Respondent was appointed as auditor of six private companies and completed audits of the financial statements of two of the companies. The 1st Respondent was the engagement director. There were deficiencies in the two audits completed and in the engagement acceptance procedures for all six companies.

 

(Respondents are appealing the order of the Disciplinary Committee.)

Order:
1st Respondent
Cancellation of practising certificate with effect from 9 February 2016 and no practising certificate shall be issued to him for 3 months.

 

2nd Respondent
Reprimand

 

Penalty:
N/A


Cost:
HK$69,812

 

Extract of Reasons and Order

29 December 2015

Ho Lap Wing, Anthony
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply HKSQC 1 "Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements", Hong Kong Standard on Auditing ("HKSA") 500 "Audit Evidence" and paragraph 100.5(c) and 130 Code of Ethics for Professional Accountants ("COE").

 

The Respondent's practice was selected for practice review. Subsequent follow up practice review visit indicated that the Practice continued to fail to take appropriate actions in response to the quality control deficiencies previously identified. In addition, the practice review also identified a number of deficiencies in the Practice's audit engagements of two clients.

Order:
Cancellation of practising certificates issued to the Respondent in 2015
and the same shall not be issued to him for year 2016

 

Penalty:
N/A


Cost:
HK$22,226

 

Extract of Reasons and Order

 

21 December 2015

1) Choi Man Chau, Michael
2) Chan Kin Wai
3) Pan China (HK) CPA 

     Limited

(ENG)

(CHI)

 

Failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute.

 

The 1st and the 3rd Respondents were in breach of HKSAs 230 Audit Documentation and 500 Audit Evidence.

The 2nd Respondent was in breach of HKSA 220 Quality Control for an Audit of Financial Statements.

 

In addition, the 1st and 2nd Respondents were in breach in the Fundamental Principle of Professional Competence and Due Care in sections 100 and 130 of the Code of Ethics for Professional Accountants.

Order:
All three respondents:
Reprimand


Penalty:
1st & 2nd Respondents
HK$12,000


3rd Respondent
HK$50,000

 

Cost:
HK$83,215.6


Extract of Resons and Order

18 December 2015

1) Cheng Chi Pang
2) Leslie Cheng & Co.
(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute.

 

The 1st Respondent was in breach of  HKSA 220 and paragraphs 100.4 and 130.1 of the Code of Ethics for Professional Accountants

 

The 2nd Respondent was in breach of a number of auditing standards.

 

Order:
All two respondents:
Reprimand


Penalty:
1st Respondents
HK$100,000
2nd Respondent
HK$200,000

 

Cost:
1st Respondents
HK$10,250


All two respondents

HK$280,788.7

 

Extract of Resons and Order

4 December 2015

Poon Ming Pui
(ENG)

(CHI)

Conducting himself in a manner inconsistent with the good reputation of a professional accountant in breach of Statement 1.200 which applied up to June 2006, and failure or neglect to observe, maintain or otherwise apply Fundamental Principle of Integrity in sections 100 and 110 of the Code of Ethics for Professional Accountants which applied from July 2006.


The Respondent made several materially false or misleading declarations to his employers in which he failed to disclose securities trading activities he carried out through two of his friends' securities accounts.  The Securities and Futures Commission took disciplinary action against the Respondent, banning him from re-entering the securities industry for 10 months from January 2014.

Order:
Removal from the register of CPAs for 1 year with effect from 18 January 2016


Penalty:
HK$10,000

 

Cost:
HK$21,947


Extract of Reasons and Order

28 October 2015

1) Lo Shung Chi

2) Ngai Wai Chung

3) Jonten Hopkins CPA Ltd.

(ENG)

(CHI)

The 3rd Respondent failed or neglected to observe, maintain or otherwise apply a number of auditing standards in the audit of a Hong Kong listed company.

All three respondents were in breach of the fundamental principle of "Professional Competence and Due Care" in section 100 and 130 of the Code of Ethics for Professional Accountants; and

The 1st and 3rd Respondents were guilty of professional misconduct.

Order:

1st Respondent
Cancellation of his practising certificate  and no practising certificate shall be issued to him for one year.


2nd & 3rd Respondents.

Reprimand

 

Penalty:

1st Respondent

HK$100,000

2nd Respondent

HK$40,000

3rd Respondent

HK$80,000

 

Costs:

HK$32,500

 

Order 

Reasons for Decision

 

 

11 September 201534(1)(a)(v)Failure or neglect to observe a direction issued by the Practice Review Committee under section 32F(2) of the Professional Accountants Ordinance.

To cooperate with the Institute to complete a practice review on his practice. Payments of penalty and costs of totaling HK$283,468.


Extract of Resons and Order

21 September 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply namely paragraph 10, 11, 12 and /or 17 of Hong Kong Standard of Auditing 700. The Respondent failed to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from the material misstatement.

Reprimand and payment of penalty and costs of totaling HK$69,473.

  

Extract of Reasons and Order

18 September 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply multiple professional standards as provided in the Code of Ethics for Professional Accountants 110.1, 110.2, 290.4, 290.6 and 290.134; Hong Kong Standards on Auditing 220,300,315,500 and 705; Hong Kong Accounting Standard 37. The Respondent was guilty of serious professional misconduct covering audit deficiencies, ethical requirements, policies and procedures and quality control.

Reprimand and payments of penalty and costs totaling HK$78,696


Extract of Reasons and Order

11 September 2015

Chow Ho Tung, Anthony

(ENG)

(CHI)

Guilty of dishonourable conduct. Chow was convicted of 9 charges involving conspiracy to steal, conspiracy to defraud, and publishing a false statement in a company's annual report. The District Court sentenced Chow to imprisonment for 5 years and 4 months.

Order:
Permanent removal from the register of CPAs with effect from 22 October 2015.


Penalty:

N/A


Cost:
HK$24,066


Exact of Reasons and Order

10 September 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply namely paragraph 100.4(e) of the Code of Ethics for Professional Accountants (effective on 30 June 2006) ('the Code') and elaborated in section 150 Code, as evidenced by their breach of their director's undertaking for failure to use their best endeavours to procure the Company's compliance with the Listing Rules. 

Reprimand and payments of penalty and costs of totaling HK$82,000.


Decision on Costs

Reasons for Decision
 

26 August 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply a professional standard, namely Hong Kong Standard on Auditing 500 Audit Evidence. The Respondent failed to obtain sufficient appropriate audit evidence in respect of cash and cash equivalents in the financial statements. As a result, the balance was materially overstated.

Reprimand and payments of penalty and costs of totaling HK$36,118.


Extract of Reasons and Order

19 August 201534(1AAA)Failure or neglect to observe, maintain or otherwise apply sections 100.5, 110 and 150 of the Code of Ethics for Professional Accountants. The Respondent breached of the fundamental principle of integrity by misrepresenting professional and academic qualifications and other credentials in internet social media.

Reprimand and payments of penalty and costs of totaling HK$47,436

 

Extract of Reasons and Order

13 July 2015

LEUNG, Kent Ning, Louis

(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply paragraphs 290.4 and 290.6 of the Code of Ethics for Professional Accountants. The Respondent  was the engagement director of a corporate practice which issued the auditor's report of a private company for the period when he had been appointed and acted as the Chief Financial Officer of the company.

Order:
Cancellation of practising certificates issued to the Respondent in 2015
and the same shall not be issued to him for year 2016


Penalty:
HK$100,000


Cost:
HK$100,000

 

Extract of Resons and Order

22 May 2015

34(1)(a)(vi)

34(1A)

Failure or neglect to observe, maintain or otherwise apply: Hong Kong Standard on Auditing ("HKSA") 500 Audit Evidence, HKSA 200 Objective and General Principles Governing an Audit of Financial Statements, HKSA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatements, and HKSA 700 The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements.
The respondents failed to comply with auditing standards in their work carried out on the recognition and valuation of mining and exploration rights acquired by a listed company for the years ended 31 December 2008 and 2009.

Reprimand and payments of penalty and costs of totaling HK$211,351.4


Penalty:
HK$100,000 for each respondent


Cost:
Costs of HKICPA and FRC
HK$113,351.40

 

Extract of Reasons and Order

 

10 April 201534(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply:

 

(a) Statement of Auditing Standards ("SAS") 400 "Audit Evidence", SAS 230 "Documentation" and SAS 200 "Audit Planning" applying in 1998 and 1999 and the corresponding standards applying in 1997 in the audit of the consolidated financial statements of a company formerly listed in Hong Kong.

 

(b) Professional Ethics Statement 1.200 in that the respondents failed to carry out professional work with a proper regard to technical and professional standards.

Reprimand and payments of penalty and costs of totaling HK$1,751,071.

  

Extract of Reasons and Order

 

10 March 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply sections 100.5 and 110 “Integrity” of the Code of Ethics for Professional Accountants.  The Respondent falsely claimed, on a number of public occasions, that he held a Master degree in Professional Accounting when he was only a student of that programme at the relevant time.

Reprimand and payments of penalty and costs of totaling HK$74,265.

  

Extract of Reasons and Order
6 March 2015

Yeung Chai On, Paul

(ENG)

(CHI)

Failure or neglect to observe, maintain or otherwise apply sections 100.4/5(a) and 110 “Integrity” of the Code of Ethics for Professional Accountants.  The Respondent failed to be straight- forward and honest in his dealings with the HKICPA Trust Fund.

Order:
Removal from the register of CPAs for 6 months with effect from 1 May 2015

Penalty:

N/A

 

Cost:

HK$31,829.70

 

Extract of Reasons and Order

22 January 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply sections 100.4(a) and 110 “Integrity” of the Code of Ethics for Professional Accountants and guilty of dishonourable conduct.  The Respondent was senior manager of a CPA firm and signed auditor’s reports in the name the firm without its knowledge and authority.

Removal from the register of CPAs for 12 months .

Payment of penalty and costs of totaling HK$50,499.

 

Extract of Reasons and Order

16 January 201534(1)(a)(x)Guilty of dishonourable conduct.  The Respondent was convicted in the Magistrate's Court of six charges of indecent assault.

Removal from the register of CPAs for 9 months.

Payments of costs HK$47,324 

 

Extract of Reasons and Order

8 January 2015

1) Lam Chi Ming, Francis;
2) Lee Ho Yee;
3) KL CPA Limited
(ENG)

(CHI)

 

1st and 3rd Respondent:
Failure or neglect to observe, maintain or otherwise apply paragraphs 100.4(c) and 130.1 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants in the audit of the financial statements of a Hong Kong listed company.

 

2nd Respondent:
Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 220 "Quality Control for an Audit of Financial Statements" as engagement quality control reviewer of the audit.

 

All three Respondents:
Guilty of professional misconduct in performing the audit.

Order:
1st and 2nd Respondents
Cancellation of practising certificates with effect from 17 February 2015 and the same shall not be issued to them for 24 months.

 

3rd Respondent
Reprimand

 

Penalty:

N/A

 

Costs:

HKICPA
HK$20,840

 

FRC
HK$226,234.60

 

Extract of Reasons and Order

6 January 201534(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 230 "Audit Documentation" in the audits of the financial statements of a listed company in Hong Kong for the years ended 31 December 2008.
The respondents failed to prepare audit documentation that provides a sufficient and appropriate record of the objective analysis undertaken to support the basis of their concurrence with the listed company's accounting treatment of the impairment losses recorded in the investment revaluation reserves.

Reprimand and payments of penalty and costs of totaling HK$164,694.8

 

Extract of Reasons and Order
12 December 201434(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply sections 100.5 and 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants and guilty of professional misconduct.   The Respondent's practice was selected for practice review.  Subsequent follow up practice review visit identified deficiencies in the Respondent's audits of two clients.

Cancellation of practising certificate with effect from 2 February 2015 and the same shall not be issued to him for 10 months.

Payments of costs totaling HK$25,376

 

Extract of Reasons and Order

12 December 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 110 "Integrity" and section 120 "Objectivity" of the Code of Ethics for Professional Accountants and Hong Kong Standard on Auditing 550 "Related Parties".  Respondent wrongfully acceded to client's request to issue an unmodified audit opinion on financial statements known to contain a material error, and failed to evaluate whether certain related-party transactions were appropriately disclosed in the financial statements.

Removal from the register of CPAs for 10 months and Reprimand.

Payments of penalty and costs totaling HK$49,840

 

Extract of Reasons and Order

21 November 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply HKSQC 1, HKSA 230, and HKSAE 3000.  The Respondent's practice was selected for practice review.  Subsequent follow up practice review visits indicated that the Practice continued to fail to take appropriate actions in response to the quality control deficiencies identified during practice reviews which include the failure to implement an adequate monitoring function.  In addition, the practice review also identified a number of deficiencies in the Practice's audits and assurance engagements of two clients.

Cancellation of practising certificates issued  with effect from 31 December 2014 and the same shall not be issued to him for year 2015.

Payments of penalty and costs totaling HK$48,073.

  

Extract of Reasons and Order

17 November 2014

34(1)(a)(vi)

34(1AA)

1st Respondent:
Failure or neglect to observe, maintain or otherwise apply the Fundamental Principles set out in the then applicable paragraph 100.4(c) and as elaborated in paragraph 130.1 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants ("Code") for failure to act diligently in accordance with professional standards when carrying out the work, as an engagement director, on the unaudited pro forma financial information of a group of companies ("Unaudited PFI") contained in a circular issued by a listed company in Hong Kong for the purpose of a substantial acquisition and the audit of the financial statements of the listed company for the year ended 30 June 2010 ("2010 Financial Statements").

 

2nd Respondent:
Failure or neglect to observe, maintain or otherwise apply (i) Hong Kong Standard on Auditing ("HKSA") 220 "Quality Control for an Audit of Financial Statements"; and (ii) the Fundamental Principles set out in the then applicable paragraph 100.4(c) and as elaborated in paragraph 130.1 "Professional Competence and Due Care" of the Code for failure to act diligently and in accordance with professional standards when carrying out the work, as an engagement quality control reviewer, in the 2010 Financial Statements.

 

 

3rd Respondent:
Failure or neglect to observe, maintain or otherwise apply any one or all of the following professional standards when carrying out the work on the Unaudited PFI and 2010 Financial Statements:
(i) Hong Kong Standard on Investment Circular Reporting Engagements 300 "Accountants' Reports on Pro Forma Financial Information in Investment Circulars";
(ii) HKSA 200 "Objectives and General Principles Governing an Audit of Financial Statements";
(iii) HKSA 230 "Audit Documentation";
(iv) HKSA 500 "Audit Evidence";
(v) HKSA 545 "Auditing Fair Value Measurements and Disclosures";
(vi) HKSA 620 "Using the Work of an Expert"; and/or
(vii) HKSA 700 "The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements".

Reprimand and payments of penalty and costs of totaling HK$108,673.2

 

Extract of Reasons and Order

3 November 201434(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply section 150 "Professional Behavior" and section 450 "Practice Promotion" of the Code of Ethics for Professional Accountants by allowing an unregistered company sending out unsolicited promotional emails and holding itself out as providing audit services.

Reprimand and payments of penalty and costs of totaling HK$23,765

 

Extract of Reasons and Order

30 October 2014

34(1)(a)(vi)

34(1)(a)(viii)

Failure or neglect to observe, maintain or otherwise apply the then applicable Statement 1.200 "Professional Ethics – Explanatory Forward", Statement 1.290C "Professional Ethics – Unlawful Acts or Defaults By or On Behalf of a Member's Employer" and Statement 1.291 "Professional Ethics – The Ethical Responsibilities of Members in Business".  The Respondent was an accounting manager of a listed company in Hong Kong.  She failed to report her employer's unlawful acts to an appropriate level of management or to the relevant third party authorities.  She was also aware that the information provided to the auditors of a listed company was either misrepresented or false and she did not do anything to rectify the situation

Removal from the register of CPAs for 24 months.

Payments of costs of HK$20,352.

   

Extract of Reasons and Order

27 October 2014

34(1)(a)(x)

Guilty of dishonourable conduct.  The Respondent was convicted in the Magistrate's Court of one count of indecent assault and one count of loitering causing concern.

Removal from the register of CPAs for 6 months and payments of costs of HK$19,207

  

Extract of Reasons and Order

26 September 201434(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Investment Circular Reporting Engagements 300 – "Accountants' Reports on Pro Forma Financial Information in Investment Circulars" in expressing an unqualified opinion in their report on the unaudited pro forma financial information of a group of companies ("Unaudited PFI") as a result of having failed to identify that the listed company had not applied its deferred taxation accounting policy consistently in the pro forma adjustments in the Unaudited PFI.

Reprimand and payments of penalty and costs of totaling HK$55,080

Extract of Reasons and Order

11 September 2014

34(1)(a)(vi)

 

Failure or neglect to observe, maintain or otherwise apply section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants for the Respondents' failure to act diligently in accordance with Hong Kong Accounting Standard 16 "Property, Plant and Equipment" in the audit of the financial statements of a listed company.

Reprimand and payments of penalty and costs of totaling HK$73,273.4

 

Extract of Reasons and Order

11 September 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 700 "Forming an Opinion and Reporting on Financial Statements" for the Respondent's failure to express a modified auditor's opinion in respect of a listed company's non-compliance with Hong Kong Accounting Standard 16 "Property, Plant and Equipment"for two years.

Rerpimand and payments of penalty and costs of totaling 93,157.4

 

Extract of Reasons and Order

26 August 201434(1)(a)(x)Guilty of dishonourable conduct.  Cheng was convicted in the Magistrate's Court of one charge of an attempted indecent assault and one charge of indecent assault.

Removal from the register of CPAs for six months and payments of costs of HK$14,965.

 

Extract of Reasons and Order

15 August 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply paragraphs 100.5(e) and 150.1 "Professional Behavior" of the Code of Ethics for Professional Accountants for the Respondent's failure to comply with relevant laws and regulations and avoid any action that discredits the profession when he took and duplicated the apartment keys of a colleague and attempted to gain entry into that apartment.

Reprimand and payments of penalty and costs of totaling HK$34,681

 

Extract of Reasons and Order

22 July 201434(1)(a)Failure or neglect to observe, maintain or otherwise apply Statement 1.203 "Professional Ethics – Integrity, Objectivity and Independence".

Guilty of professional misconduct as a result of his failure to observe, maintain or otherwise apply the independence requirements of the Institute, namely Statements of Professional Ethics 1.200 "Professional Ethics – Explanatory Foreword" and Statement 1.203 "Professional Ethics – Integrity, Objectivity and Independence".

Reprimand for the 1st and 2nd Respondents.

The name of 3rd Respondent be removed from the register of CPAs for 2 years .

Payments of penalty and costs of totaling HK$ 2,500,000

 

Determination 

 

21 July 201434(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply section 100.4(e) of the Code of Ethics for Professional Accountants, as a result of the Respondent's being convicted for unlawful short selling of shares of a listed company contrary to the Securities and Futures Ordinance.

Reprimand and payment of penalty totaling HK$26,708


Extract of Reasons and Order

21 July 201434(1)(a)(vi)Failure or neglect to observe, maintain or otherwise apply section 100.4(e) of the Code of Ethics for Professional Accountants, as a result of the Respondent's being convicted for unlawful short selling of shares of a listed company contrary to the Securities and Futures Ordinance.

Reprimand and payments of penalty totaling HK$55,834

 

Extract of Reasons and Order

17 June 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Statement of Auditing Standards 230 "Documentation" in their audit of a listed company's 2002 financial statements.  The Respondents did not document the procedures adopted for maintaining control over the external confirmation exercise and for reaching an audit conclusion regarding the existence and valuation of the deferred development cost of a project amounting to HK$40,857,000.

Reprimand and payments of penalty and costs totaling  HK$635,000

 

Extract of Reasons and Order

24 March 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply the Fundamental Principles of "Professional Competence and Due Care" set out in sections 100.5 and 130 of the Code of Ethics for Professional Accountants, and "Professional Behavior" set out in sections 100.5 and 150 of the Code.  The respondents' failed to comply with certain provisions of the Companies Ordinance and the Companies (Winding-up) Rules in conducting a liquidation and were removed by the Court as liquidators.

Order:

Cancellation of practising certificates issued to the respondents and the same shall not be issued to them for 12 months.

 

Penalty:

HK$50,000 for each Respondent

 

Cost:

HK$23,441

 

Extract of Reasons and Order

 

18 March 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 130.1 of the Code of Ethics for Professional Accountants and Hong Kong Accounting Standard 33 "Earnings per Share".  The respondents had calculated or concurred with wrong amounts of earnings per share disclosed in the accountants' report and audited financial statements of a Hong Kong listed company.

Reprimand and payments of penalty and costs totaling HK$80,000

 

Extract of Reasons and Order

27 January 2014

34(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 250 "Consideration of Laws and Regulations in an Audit of Financial Statements" and Hong Kong Standard on Auditing 500 "Audit Evidence".

Reprimand and payments of costs totaling HK$25,887

 

Extract of Reasons and Order

 

8 January 2014

34(1)(a)(ix)

34(1AA)

Refusal or neglect to comply with rule 7 of the Corporate Practices (Registration) Rules by allowing audit reports issued by the corporate practice to be signed by persons who were not directors of the corporate practice and practising members.

The corporate practice was reprimanded; and the name of the CPA was removed from the register of CPAs for 30 months. 

Payments of costs HK$81,893

  

Extract of Reasons and Order

7 January 2014

34(1)(a)(vi)

34(1)(a)(iii)(B)

34(1)(a)(viii)

 

Failure or neglect to observe, maintain or otherwise apply the Fundamental Principles of "Professional Competence and Due Care" set out in section 100 "Introduction and Fundamental Principles", section 110 "Integrity" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants.

 

Made statements which were material and which he knew to be false or did not believe to be true.

 

Guilty of professional misconduct due to the above non-compliances.

Reprimand and payments of penalty and costs totaling HK$64,980

 

Extract of Reasons and Order

 

5 December 201334(1)(a)(ii)

Conviction by the Magistrate's Court of offences involving dishonesty. The Respondent obtained merchandise and money from a toy shop by acts of deception.

Removal from the register of CPAs for six months and payment of costs of HK$20,200.

 

Extract of Reasons and Order

27 November 201334(1)(a)(x)

Guilty of dishonourable conduct. The Respondent was convicted of 20 charges of "Behaving in a Disorderly Manner in a Public Place".  He had taken improper photos of unknown females in public places.

Removal from the register of CPAs for 12 months and payment of costs of HK$19,976.

 

Extract of Reasons and Order

22 November 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 100 "Introduction and Fundamental Principles" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of penalty and costs totaling HK$60,879.

 

Extract of Reasons and Order

19 November 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply the Fundamental Principles of "Professional Competence and Due Care" and "Professional Behaviour" set out in section 100 "Introduction and Fundamental Principles" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of costs of HK$21,466.

 

Extract of Reasons and Order

11 November 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 450 "Practice Promotion" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of costs of HK$23,481.

 

Extract of Reasons and Order

29 October 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 230 "Audit Documentation" and Hong Kong Standard on Quality Control 1 "Quality Control for Firms That Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements".

Reprimanded and payment of penalty and costs totaling HK$79,750.

 

Extract of Reasons and Order

28 October 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 230 "Audit Documentation".

Reprimanded and payment of penalty and costs totaling HK$279,986.60.

 

Extract of Reasons and Order

10 October 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants.

The corporate practice was reprimanded and the CPA be removed from the register of CPAs for 18 months with effect from 18 November 2013.
The respondents were also ordered to pay costs of HK$162,265.40.

 

Extract of Reasons and Order

3 October 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 100 "Introduction and Fundamental Principles", section 110 "Integrity" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of penalty and costs totaling HK$81,532.

 

Extract of Reasons and Order

2 October 2013

Yip Tze Wai, Andy

(ENG)

(CHI)

Guilty of dishonourable conduct. The Respondent was convicted of an offence under the Organized and Serious Crime Ordinance (Cap.455) in that he has dealt with property known or reasonably believed to represent the proceeds of an indictable offence. The Respondent was sentenced to imprisonment for 2 years and 9 months.

Order:

Removal from the register of CPAs for 4 years.

 

Penalty:

N/A

 

Cost:

HK$78,116

 

Extract of Reasons and Order

29 August 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 100 "Introduction and Fundamental Principles" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants. 

Reprimanded and payment of penalties and costs totalling HK$1,150,000.

 

Extract of Reasons and Order

12 August 201334(1)(a)(ix)

Refusal or neglect to comply with a direction given by the Council pursuant to section 18B of the Professional Accountants Ordinance.

Removal for 6 months with effect from 13 September 2013, and payment of penalty and costs totaling HK$158,116.

 

Extract of Reasons and Order

23 July 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 100 "Introduction and Fundamental Principles" and section 150 "Professional Behaviour" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of penalties and costs totaling HK$31,607.

Extract of Reasons and Order

25 June 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 150 Professional Behavior of the Code of Ethics for Professional Accountants.

Reprimanded and payment of costs totaling HK$23,727.

 

Extract of Reasons and Order

14 June 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 150 "Professional Behavior" and section 450 "Practice Promotion" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of penalties and costs totaling HK$120,941.

 

Extract of Reasons and Order

11 June 2013

34(1)(a)(ix)

34(1)(a)(vi)

Failure or neglect to comply with a lawful direction given by the Council and failure or neglect to observe, maintain or otherwise apply Statement of Auditing Standards 600 Auditors' Reports on Financial Statements. 

Removal from the register of CPAs for six months with effect from 1 August 2013; reprimanded and payment of penalties and costs totaling HK$119,411.

 

Extract of Reasons and Order

28 May 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply paragraph 100.4(c) "Professional Competence and Due Care" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants by failing to comply with rule 4(2) of the Accountants Report Rules (Cap.159A) in issuing a compliance report on the clients accounts of a solicitors' firm.

Reprimanded and payment of penalty and costs totaling HK$43,914.

 

Extract of Reasons and Order

28 May 201334(1)(a)(x)

Guilty of dishonourable conduct. The Respondent was convicted of a crime of dealing with a sum totaling 6,117,783.81 euros that was known or reasonably believed to represent proceeds of an indictable offence, contrary to section 25(1) and (3) of the Organized and Serious Crimes Ordinance (Cap.455). The District Court sentenced the Respondent to imprisonment for 6 years.

Permanent removal from the register of CPAs with effect from 9 July 2013 and payment of costs totalling HK$41,463.

 

Extract of Reasons and Order

8 May 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 150 "Professional Behavior" and section 450 "Practice Promotion" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of costs totaling HK$22,900.

 

Extract of Reasons and Order

12 March 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply section 100 "Introduction and Fundamental Principles" and section 130 "Professional Competence and Due Care" of the Code of Ethics for Professional Accountants.

Reprimanded and payment of penalty and costs totaling HK$99,640.

 

Extract of Reasons and Order

15 February 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing 230 "Audit Documentation". 

Reprimanded and payment of penalty and costs totaling HK$100,000.

 

Extract of Reasons and Order

16 January 201334(1)(a)(vi)

Failure or neglect to observe, maintain or otherwise apply Hong Kong Financial Reporting Standard for Private Entities and Hong Kong Standard on Auditing 500 "Audit Evidence" during the audit of the financial statements of a private company in Hong Kong.

Reprimanded and payment of penalty and costs totalling HK$105,882.

 

Extract of Reasons and Order

8 October 2012

34(1)(a)(vi)

Failure to comply with Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates", Hong Kong Standard on Auditing 500 "Audit Evidence" and the Code of Ethics for Professional Accountants in the audits of the financial statements of two listed companies.

Cancellation of practising certificate issued to the Respondent, practising certificate shall not be issued to the Respondent for the calendar years of 2013 and 2014 and payment of costs of disciplinary proceedings amounting to HK$68,145.

 

Extract of Reasons and Order

26 September 2012

34(1)(a)(vi)
34(1)(a)(viii)

Non-compliance with the then applicable Statement 1.200 "Professional Ethics – Explanatory Foreword" and paragraph 100.4(a) of the Code of Ethics for Professional Accountants  in that the Respondent was found to have submitted a declaration form to the Official Receiver which contained incorrect and misleading information.

 

The Respondent was also found guilty of professional misconduct in relation to his conduct as a joint and several liquidators/provisional liquidators of certain companies.

Removal from the register of CPAs for a period of 3 years; and payment of penalty and costs totalling HK$321,844.33.

 

Extract of Reasons and Order

19 September 2012

34(1)(a)(vi)

Non-compliance with Statement 1.200 "Professional Ethics – Explanatory Foreword" in that the Respondents were found by the Market Misconduct Tribunal to be culpable of insider dealing in the securities of a listed company.

The Respondents were reprimanded and removed from the register of CPAs for one year.

Each of them was also ordered to pay a penalty of HK$100,000 and pay costs of HK$34,159 and HK$21,145 for 1st Respondent and 2nd Respondent respectively.

 

Extract of Reasons and Order

26 April 2012

34(1)(a)(x)

Guilty of dishonourable conduct.  The Respondent was the financial controller of a company, which was preparing for a listing application with the Hong Kong stock exchange at the time when he joined the company.  He acted as the main witness who gave evidence under immunity in a criminal case.  According to the evidence available, he participated in a conspiracy to falsify the company's accounting records and in a scheme to deceive the auditors.

Removal from the register of CPAs for five years starting from 14 June 2012 and payment of penalty and costs totalling HK$130,000.

 

Extract of Reasons and Order

11 April 201234(1)(a)(ii)

Conviction of two criminal offences involving dishonesty.  The Respondent was found guilty of two counts of conspiracy to defraud the shareholders and other parties by inflating the turnover and profit figures shown in a listed company's published financial statements following its successful listing; and defraud a bank by applying for a letter of credit when there was no genuine underlying commercial transaction.   The Respondent was sentenced to imprisonment for six years and three months.

Removal from the register of CPAs for five years starting from 30 May 2012 and payment of penalty and costs totalling HK$130,000.

 

Extract of Reasons and Order

10 April 2012

34(1)(a)(vi)

Failure to comply with Hong Kong Standard on Auditing 230 "Audit Documentation" and Statement of Auditing Standards 510 "Principal auditors and other auditors" in the audit of the financial statements of a listed company.

Reprimand and payment of penalty and costs of disciplinary proceedings totalling HK$64,200 and investigation costs of the Financial Reporting Council of HK$51,700.

 

Extract of Reasons and Order

 

Extract of Reasons and Order