News Centre

The AFRC has imposed sanctions on PricewaterhouseCoopers (PwC), Mr Cheng Kwong On (Cheng) and Mr Kong Ling Yin, Raymond (Kong) for multiple breaches of auditing standards in the audits of a Hong Kong listed company, Dynasty Fine Wines Group Limited, for the years ended 31 December 2010 and 31 December 2011. 

The engagement team from PwC, led by Cheng as the engagement partner, performed deficient audit work on revenue recognition and failed to obtain sufficient appropriate audit evidence in relation to the company’s recorded revenues, resulting in the incorrect issuance of an unmodified audit opinion.  Kong had been appointed as the engagement quality control reviewer for the audits, but failed to identify the lack of sufficient appropriate audit evidence.

Given the seriousness of the misconduct, the AFRC has reprimanded each of these regulatees and imposed pecuniary penalties totalling HK$1.6 million.

It is noted that the Decision Notices were initially issued to PwC, Cheng and Kong on 20 February 2025.  On 13 March 2025, the regulatees applied to the Accounting and Financial Reporting Review Tribunal for a review of the decisions.  The review application was subsequently withdrawn with costs to the AFRC, and the Decision Notices became effective.

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