Showing 153 - 160 of 282 results
Completed investigation
The FRC found that the auditor, the engagement partner and the engagement quality control reviewer failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audits in relation to (a) assets and liabilities held for distribution to owners and discontinued operations; (b) impairment assessments of available-for-sale investments; (c) accounting for convertible notes; and (d) impairment assessment of loans and accounts receivable and finance leases receivable held for distribution to owners. The investigation revealed that the auditor and the engagement partner failed to properly perform the relevant audits, in relation to the above matters, in accordance with the relevant provisions of Hong Kong Standard on Auditing (HKSA) 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing , HKSA 260 (Clarified) Communication with Those Charged with Governance , HKSA 500 (Clarified) Audit Evidence , and HKSA 705 (Clarified) Modifications to the Opinion in the Independent Auditor's Report .
Completed investigation
The FRC found that the auditor, the engagement partner and the engagement quality control reviewer failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audit in relation to (a) biological assets and prepaid land lease payments, and (b) intangible assets. The investigation revealed that the auditor and the engagement partner failed to plan and/or perform the relevant audit, in relation to the above matters, in accordance with the relevant provisions of Hong Kong Standard on Auditing ( HKSA ) 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing , HKSA 300 (Clarified) Planning an Audit of Financial Statements , HKSA 330 (Clarified) The Auditor’s Responses to Assessed Risks , HKSA 500 (Clarified) Audit Evidence and HKSA 540 (Clarified) Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.
AFRC welcomes the 2022 Annual Report of the Process Review Panel
In the 2022 review cycle, the PRP reviewed the AFRC’s work in relation to the regulation of PIE auditors including the handling of (a) 10 complaints, investigation and enquiry cases, (b) inspections of six PIE auditors and seven PIE engagements, (c) recognition applications of four overseas PIE auditors, and (d) the oversight of the Hong Kong Institute of Certified Public Accountants’ specified functions from January to December 2021 and provided constructive recommendations to the AFRC in the Report. ... Dr Kelvin Wong, Chairman of the AFRC remarked, “On behalf of the AFRC, I would like to express our heartfelt gratitude to the PRP for confirming our compliance to policy in various regulatory functions in relation to PIE auditors. The valuable recommendations made by the PRP will propel the AFRC to continue striving for the highest efficiency in its delivery of regulatory outcomes to protect the public interest.”
FAQs
FAQs General Registration Practising Certificate CPA Firm Corporate Practice Local PIE Auditor Non-Hong Kong PIE Auditor Inspection Investigation & Compliance Complaints Whistleblowing Investigations Enquiries Discipline
AFRC reprimands Ting Ho Kwan & Chan and three others for serious audit breaches and imposes fines over HK$1.7 million
In both audits, the Auditor performed an assessment of management’s accounting treatment of these subsidiaries. The multiple deficiencies in those assessments led the Auditor to wrongly concur with management’s incorrect accounting treatment. ... Most significantly, the Auditor: Failed to obtain the PRC Company’s Articles of Association, which were an important piece of audit evidence for making this assessment, and which the Auditor knew were important at the time.
Frequently Asked Questions
Frequently Asked Questions General Registration Practising Certificate CPA Firm Corporate Practice Local PIE Auditor Non-Hong Kong PIE Auditor Inspection Investigation & Compliance Complaints Whistleblowing Investigations Enquiries Discipline
FAQs - Discipline
The AFRC can discipline: PIE auditors registered or recognized under Part 3 of the AFRCO; registered responsible persons; and professional persons (i.e. ... When can the AFRC discipline? PIE auditor and registered responsible person Disciplinary action may be taken against a PIE auditor or registered responsible person who has committed FR misconduct. ... What are the disciplinary measures available to the AFRC? PIE auditor The AFRC may impose, singly or in combination, the following sanctions on a PIE auditor: public or private reprimand; remedial action; pecuniary penalty; imposition of a condition on the registration or recognition; revocation or suspension of the registration or recognition; and prohibition from applying to be registered or recognized as a PIE auditor for a period of time.
Completed investigation
The FRC found that the auditor, the engagement partner and the engagement quality control reviewer failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audit in relation to a business combination and the accounting for the acquired hotel property. The investigation revealed that the auditor and the engagement partner failed to plan and perform the relevant audit, in relation to the above matters, in accordance with the relevant provisions of HKSA 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing ; HKSA 220 (Clarified) Quality Control for an Audit of Financial Statements ; HKSA 300 (Clarified) Planning an Audit of Financial Statement s; HKSA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment ; HKSA 330 (Clarified) The Auditor’s Responses to Assessed Risks ; HKSA 500 (Clarified) Audit Evidence ; and HKSA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures .