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The AFRC has sanctioned MnO CPA Limited (formerly known as Wellink CPA Limited) (MnO), Ms Chan Yan Ting (Chan) and Mr Ngan Hing Hon (Ngan) for multiple audit deficiencies in relation to the audit of a Hong Kong listed company, New Concepts Holdings Limited, for the year ended 31 March 2017.

These deficiencies involved repeated failures to critically assess the work of experts, and apply professional scepticism to management’s assumptions, in relation to the valuation of technology assets.  As a result of these failures and an ineffective engagement quality control review, the auditor issued an unmodified audit opinion without sufficient appropriate audit evidence. 

The AFRC has issued a public reprimand to each of MnO, Chan and Ngan, and imposed pecuniary penalties totalling HK$600,000, comprising penalties of HK$300,000 for MnO, HK$210,000 for Chan, and HK$90,000 for Ngan. 

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