Disciplinary Cases

Regulatees:

• PricewaterhouseCoopers
• Cheung Siu Cheong
• Chow Sai Keung

Misconduct:

• Multiple audit deficiencies were identified in the auditor’s work in the audits of the financial statements of one formerly listed company and two listed companies.
• These deficiencies included: (i) facilitating and contributing to management’s inflation of the group’s reported profits and liquidity, (ii) failures to exercise professional scepticism despite elevated audit risks, (iii) a significant loss of audit independence,  and (iv) the issuance of unmodified audit opinions despite not having obtained sufficient appropriate audit evidence (and, in some instances, despite knowing that such evidence was lacking).
• Substantial weaknesses in the auditor’s governance and monitoring controls in respect of the relevant audits were also identified.
• The engagement quality control reviewer failed to adequately evaluate the engagement team’s significant judgments and conclusions in the audits.
• The quality control system responsible person breached his statutory obligation and failed to demonstrate professional competence and due care in performing his role.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • PricewaterhouseCoopers: HK$300,000,000
  • Cheung Siu Cheong: HK$5,000,000
  • Chow Sai Keung: HK$5,000,000
• Immediate practice limitation
  • PricewaterhouseCoopers: An immediate practice limitation prohibiting PricewaterhouseCoopers, for a period of 6 months, from accepting, performing, or issuing reports in respect of any PIE engagements for new clients.
• Direction
  • PricewaterhouseCoopers: A direction that PricewaterhouseCoopers provide periodic updates and reports to the AFRC regarding its remedial actions for a period of 12 months (at intervals of no more than 3 months), and to arrange additional training to ensure that effective remedial measures are implemented to address the regulatory concerns identified by the AFRC in this matter.

17 Mar 2026

22 May 2025

Regulatees:

• Anthony S. L. Chiang & Co.
• Chiang Sham Lam Anthony

Misconduct:

• The Accounting and Financial Reporting Review Tribunal has confirmed and upheld the AFRC’s decisions against a practising CPA and his firm for breaching fundamental independence requirements when performing audits for five private companies over 22 years, and failing to establish and maintain an effective quality control system to ensure independence.
• The Court of Appeal dismissed the applications by the regulatees for (i) leave to appeal against the Tribunal's determination and (ii) a stay of execution of the AFRC's decision notices, fully endorsing the reasoning of the AFRC’s disciplinary decision and the Tribunal's determination. The Court of Appeal further ordered the regulatees to pay the AFRC’s costs of the applications.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Anthony S.L. Chiang & Co: HK$250,000
  • Chiang: HK$250,000
• Suspension of registration
  • Anthony S.L. Chiang & Co: 3 years
  • Chiang: 3 years
• Cancellation of practising certificate: Chiang
• Non-issuance of practising certificate
  • Chiang: 3 years
• Payment of investigation costs and expenses: Anthony S.L. Chiang & Co and Chiang

Press Release | Court of Appeal Judgment

Press Release | Tribunal Determination 

10 Mar 2026

Regulatees: 

• Jon Gepsom CPA Limited (formerly McM (HK) CPA Limited)
• Wong Ka Bo, Jimmy
• Lo Ka Ki

Misconduct: 

• The auditor failed to address independence threats arising from the director of its network firm concurrently serving as the company secretary of its audit client.
• The auditor also authorised an unregistered engagement quality control reviewer to carry out activities during a PIE audit, breaching the relevant statutory registration requirements.

Sanctions:

• Public reprimand
• Pecuniary penalties
  • Jon Gepsom: HK$210,000
  • Wong: HK$70,000
  • Lo: HK$35,000

10 Mar 2026

Regulatee: 

• Tang Wai Leung

Misconduct: 

• The CPA carried out activities as an external engagement quality control reviewer for a PIE audit engagement when he was not a registered engagement quality control reviewer of the relevant auditor, breaching the relevant statutory registration requirements.
• He also failed to properly evaluate the relevant auditor’s conclusion on its independence.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$70,000
• Payment of investigation costs and expenses

10 Mar 2026

Regulatee: 

• Yeung Chi Fai

Misconduct: 

• The practising CPA signed off audit reports for 15 private companies without holding a valid practicing certificate, in breach of the relevant statutory registration requirements.
• He also audited the financial statements of six private companies while being the company secretary for these companies, in breach of the fundamental independence requirements.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$161,000
• Payment of investigation costs and expenses

5 Mar 2026

Regulatee: 

• Prism Hong Kong Limited (formerly Prism Hong Kong and Shanghai Limited)

Misconduct: 

• The corporate practice failed to comply with anti-money laundering requirements. The deficiencies included failures to (i) perform mandatory risk assessments, (ii) verify a person’s authority to act on behalf of a client before engagement acceptance, and (iii) carry out sanctions screening of client entities.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$150,000

5 Mar 2026

Regulatee: 

• Wong Ka Chun

Misconduct: 

• The CPA failed to comply with anti-money laundering requirements. The deficiencies included failures to (i) establish foundational policies, procedures, and controls necessary for compliance, (ii) properly conduct customer due diligence, and (iii) carry out sanctions screening of audit clients.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$70,000

5 Mar 2026

Regulatees: 

• Danny Ho & Company
• Ho Oi Suen, Danny

Misconduct: 

• The CPA and the CPA firm failed to comply with anti-money laundering requirements. The deficiencies included failures to (i) establish foundational policies, procedures, and controls necessary for compliance, (ii) properly conduct customer due diligence, and (iii) carry out sanctions screening of audit clients.

Sanctions:

• Public reprimand
• Pecuniary penalties
  • Danny Ho & Company: HK$63,000
  • Ho: HK$7,000 

3 Mar 2026

Regulatee: 

• Forvis Mazars CPA Limited (formerly known as Mazars CPA Limited)

Misconduct: 

• The auditor committed widespread breaches of the 60-day archive requirement and deficiencies relating to its systems of quality control and management, which led to those widespread file archive breaches.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$1,400,000
• Payment of investigation costs and expenses

3 Mar 2026

Regulatee: 

• Grant Thornton Hong Kong Limited

Misconduct: 

• The auditor committed widespread breaches of the 60-day archive requirement and deficiencies relating to its systems of quality control and management, which led to those widespread file archive breaches.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$2,320,000
• Payment of investigation costs and expenses

20 Jan 2026

Regulatee: 

• Tang Yue Nam

Misconduct: 

• The CPA blatantly failed to comply with two statutory requirements issued by the AFRC, which required him to provide documents and information for the purpose of an AML inspection and a subsequent investigation by the AFRC.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$200,000
• Suspension of HKICPA registration: 18 months
• Cancellation of practising certificate
• Non-issuance of practising certificate: 18 months
• Payment of investigation costs and expenses

6 Jan 2026

Regulatees: 

• Rongcheng (Hong Kong) CPA Limited (formerly known as CL Partners CPA Limited)
• Lee Wai Chi
• Chan Kin Wai

Misconduct: 

• The auditor authorised two unregistered individuals to act as its engagement partner in 14 PIE audits.
• Further, the auditor did not have any registered engagement partner and registered quality control system responsible person for around five months, and failed to inform the HKICPA of the same within the specified time.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • RCHK: HK$808,000
  • Lee: HK$140,000
  • Chan: HK$235,000
• Payment of investigation costs and expenses: Lee and Chan

16 Dec 2025

Regulatee: 

• BOFA CPA Limited

Misconduct: 

• The auditor improperly backdated audit working papers created after the audit file assembly dates. This breached the fundamental principle of integrity and audit documentation requirements.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$175,000

20 Nov 2025

Regulatees:

• MnO CPA Limited (formerly known as Wellink CPA Limited)
• Chan Yan Ting
• Ngan Hing Hon

Misconduct: 

• In the course of auditing a listed company's valuation of technology assets and impairment of goodwill, the auditor failed to properly assess the work of the company's valuer and the auditor's own expert, and inappropriately relied on management's valuation assumptions without corroboration.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • MnO: HK$300,000
  • Chan: HK$210,000
  • Ngan: HK$90,000 

16 Oct 2025

Regulatees:

• PricewaterhouseCoopers
• Cheng Kwong On
• Kong Ling Yin, Raymond

Misconduct:

• The auditor performed deficient audit work on revenue recognition and failed to obtain sufficient appropriate audit evidence in relation to recorded revenues, resulting in the incorrect issuance of an unmodified audit opinion.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • PwC: HK$800,000
  • Cheng: HK$600,000
  • Kong: HK$200,000 

11 Sep 2025

Regulatees:

• Prism Hong Kong Limited (formerly known as Prism Hong Kong and Shanghai Limited)
• Kyaw Sai Hong
• Yam Wai Man

Misconduct:

• The auditor authorised two individuals who were not registered as its engagement partner or engagement quality control reviewer to act in such capacities in seven PIE audits. 

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Prism: HK$210,000
  • Kyaw: HK$105,000
  • Yam: HK$38,500
• Payment of investigation costs and expenses: Kyaw and Yam

28 Aug 2025

Regulatees:

• Deloitte Touche Tohmatsu
• Wong Tin Chak, Samuel

Misconduct:

• Multiple audit deficiencies related to revenue recognition and external confirmations were identified in the reporting accountant’s work auditor’s work in the audits of the financial information of a company seeking to be listed.
• These included failures to properly evaluate the design and implementation of internal controls over the revenue cycle and obtain sufficient appropriate audit evidence on their operating effectiveness, and the wrongful conclusion that such controls were effective and reliable. The reporting accountant also failed to ensure the completeness of sales in both tests of controls and substantive procedures.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Deloitte: HK$592,000
  • Wong: HK$416,000

28 Aug 2025

Regulatees:

• Deloitte Touche Tohmatsu
• Mak Chi Lung

Misconduct:

• Multiple audit deficiencies related to revenue recognition and external confirmations were identified in the auditor’s work in the audits of the financial information of a formerly listed company.
• These deficiencies included failures to (i) obtain sufficient appropriate audit evidence to corroborate revenue recognition in respect of turnkey projects, (ii) properly determine the sample size for testing the completeness and occurrence of revenue from sales of equipment, and (iii) identify and verify that some confirmations were returned the company’s subsidiaries, rather than from the banks or from the customer to which the external confirmations were addressed.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Deloitte: HK$568,000
  • Mak: HK$336,000

21 Aug 2025

Regulatees:

• BDO Limited
• Lee Alfred
• Pak Tak Lun Amos

Misconduct:

• The auditor failed to carry out analysis of forecasted revenue or critically assess the assumptions adopted by the company’s valuer for the purpose of impairment assessment of the company’s point-of-sale and e-commerce payment processing business.
• The auditor also relied on the deficient work carried out by the auditor’s valuation expert without exercising sufficient professional skepticism.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • BDO: HK$245,000
  • Lee: HK$154,000
  • Pak: HK$56,000
• Additional CPD hours
  • Lee: 20 hours
  • Pak: 10 hours

8 Aug 2025

28 May 2024

Regulatee:

• Lam Kin Choi

Misconduct:

• The practising CPA flagrantly disregarded two statutory requirements to produce information and documents for the AFRC’s inspection of his two practice units.
• The Accounting and Financial Reporting Review Tribunal dismissed the practising CPA’s out-of-time review application.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$300,000
• Suspension of HKICPA registration: 2 years
• Cancellation of practising certificate
• Non-issuance of practising certificate: 2 years
• Payment of investigation costs and expenses

Press Release (8 Aug 2025) | Tribunal Determination 

Press Release (28 May 2024) | Statement of Disciplinary Action 

27 Jun 2025

Regulatee:

• Wu Kam Shing

Misconduct:

• The CPA was found liable for insider dealing by the Market Misconduct Tribunal. His conduct constituted breaches of the principles of integrity and professional behaviour as well as dishonourable conduct.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$200,000
• Payment of investigation costs and expenses

20 Dec 2024

Regulatees: 

• BDO Limited
• Lo Ngai Hang
• Lam Hung Yun Andrew

Misconduct:

• The auditor failed to perform adequate audit procedures, obtain sufficient appropriate audit evidence, and exercise appropriate professional judgment in evaluating the accounting of the relevant water supply arrangements. Notwithstanding the apparent inconsistencies between the management’s view and other audit evidence, the auditor failed to critically assess and challenge the management’s judgments with professional skepticism. 

Sanctions:

• Public reprimands
• Pecuniary penalties
  • BDO: HK$840,000
  • Lo: HK$196,000
  • Lam: HK$420,000
• Additional CPD hours
  • Lo: 30 hours
  • Lam: 30 hours

9 Sep 2024

Regulatees: 

• Ting Ho Kwan & Chan
• Chan Shu Kin
• Chan Kwan Ying
• Wong Kam Chuen

Misconduct:

• The auditor concluded that the listed company had appropriately consolidated and deconsolidated various subsidiaries across two financial years, despite missing critical audit evidence. The auditor instead relied heavily upon uncorroborated management representations, demonstrating a significant lack of professional scepticism.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Ting Ho Kwan & Chan: HK$914,000
  • Chan Shu Kin: HK$495,000
  • Chan Kwan Ying: HK$130,000
  • Wong: HK$216,000

12 Mar 2024

Regulatees:

• Sino Corp CPA Limited
• Chan Steven Kwok Keung

Misconduct:

• The reporting accountant and the engagement director failed to conduct proper procedures in determining a solicitor’s firm’s compliance with the Solicitors’ Accounts Rules (Cap. 159F).

Sanctions: 

• Public reprimands
• Pecuniary penalties
  • Sino Corp: HK$50,000
  • Chan: HK$50,000
• Payment of investigation costs and expenses: Sino Corp and Chan

28 Nov 2023

Regulatee: 

• CCTH CPA Limited

Misconduct:

• The PIE auditor failed to complete corrective actions within the timeframes specified in a requirement issued by the Inspection Department of the AFRC. 

Sanctions: 

• Public reprimand
• Pecuniary penalty: HK$80,000

24 Nov 2023

Regulatee: 

• Chan Kam Kwan

Misconduct: 

• The practising CPA blindly signed off and issued 11 auditor’s reports of private companies and provided false and/or misleading information to the HKICPA prior to a practice review.
• Multiple deficiencies were identified on both system-wide and engagement levels, including a deficient quality control system and failure to design and perform appropriate audit procedures and obtain sufficient appropriate audit evidence in two engagements.

Sanctions:

• Public reprimand
• Pecuniary penalty: HK$300,000
• Non-issuance of practising certificate: permanent
• Payment of investigation costs and expenses

29 Aug 2023

Regulatees: 

• Centurion ZD CPA Limited
• Chan Kam Fuk
• Ling Chun Kwok

Misconduct:

• The auditor failed to obtain sufficient appropriate evidence to evaluate the measurement and impairment assessment of goodwill arising from an acquisition and failed to follow basic audit requirements and exercise adequate professional skepticism. The failures gave rise to the risk of material misstatement in the financial statements as a whole.

Sanctions:

• Public reprimands
• Pecuniary penalties
  • Centurion ZD: HK$350,000
  • Chan: HK$250,000
  • Ling: HK$100,000
• Cancellation of practising certificate: Chan
• Non-issuance of practising certificate
  • Chan: 12 months