Disciplinary Sanctions

The disciplinary sanctions are set out under the AFRCO. An overview of the types of sanctions applicable to the two categories of regulatees is set out below:

 

PIE auditors and 

registered responsible persons

Professional persons

(i.e. CPAs and practice units)

  • Remedial action
  • Reprimand (private / public)
  • Pecuniary penalty (per FR misconduct: not exceeding HK$10,000,000 or 3 times profit / loss, whichever is higher)
  • Registration or recognition
    • Imposition of a condition
    • Suspension
    • Revocation
    • Prohibition from application
  • Removal of name from the list of registered responsible persons

 

  • Reprimand (private / public)
  • Pecuniary penalty (per CPA misconduct: not exceeding HK$500,000)
  • Registration
    • Suspension
    • Revocation
  • Practising certificate
    • Cancellation
    • Non-issuance
  • Investigation costs and expenses

Note: In relation to a PIE engagement completed before 1 October 2019, the auditor or the reporting accountant concerned is to be regarded as a professional person and the AFRC can impose sanctions that are applicable to professional persons in such cases.

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