Completed investigation

On 4 February 2020, the FRC adopted the investigation report on the audit of the consolidated financial statements of a listed entity for the year ended 30 June 2015.

The FRC found that the auditor and the engagement partner failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audit in respect of the impairment assessment of the amount due to the listed entity from its subsidiary.

The investigation revealed that the auditor and the engagement partner failed to properly perform the relevant impairment assessment in accordance with the relevant provisions of Hong Kong Standard on Auditing ( HKSA ) 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing , HKSA 500 Audit Evidence , and HKSA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.

The investigation report has been referred to the Hong Kong Institute of Certified Public Accountants to determine if any disciplinary actions are warranted. Names of the relevant parties are withheld because of the potential disciplinary proceedings.