- annual renewal of practising certificates
- annual renewal of CPA Firm, Corporate Practice and PIE Auditor registrations; and
- application for registration as a Registered PIE Auditor.
The AFRC found serious breaches of professional standards by Centurion ZD CPA Limited (Centurion), engagement partner Mr Chan Kam Fuk (Chan), and engagement quality control reviewer Mr Ling Chun Kwok (Ling) in relation to the audit of the consolidated financial statements of a Hong Kong listed company, China Infrastructure Investment Limited and its subsidiaries, for the financial year ended 31 December 2016.
The AFRC found that the engagement team 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. Their failures gave rise to the risk of material misstatement in the 2016 Financial Statements as a whole.
The AFRC reprimanded Centurion, Chan and Ling for their serious breaches of professional standards, and imposed pecuniary penalties of HK$350,000, HK$250,000 and HK$100,000 respectively. In addition, the AFRC ordered that Chan’s practising certificate be cancelled, and no practising certificate be issued to him for 12 months with effect from 29 August 2023.
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