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AFRRT confirms AFRC’s decisions to suspend Chiang Sham Lam Anthony and Anthony S. L. Chiang & Co. for serious violations of fundamental auditor independence requirements
The AFRC has imposed the following sanctions: 5 Against Chiang (i) public reprimand; (ii) pecuniary penalty of HK$250,000; (iii) suspension of his registration for three (3) years; (iv) cancellation of his practising certificate; (v) nonissuance of practising certificate for three (3) years; and (vi) order for investigation costs and expenses. ... In deciding the sanctions against the Regulatees, the AFRC has considered all relevant circumstances, including the nature, seriousness, frequency, duration and impact of the misconduct, to ensure proportionate sanctioning that achieves our regulatory objectives. ... In the AFRRT’s determination, the Chairman, Mr Jonathan Chang SC, said, “in order to maintain the fundamental principle of independence which underlies the accountancy profession, a firm message needs to be sent out both to the practitioners and the general public that compromises of independence will not be tolerated and will be visited with serious sanctions.” Ms Hester Leung, Head of Discipline, said, “The requirement of auditor independence is of fundamental importance and lies at the heart of every audit.
Investigations
Investigations The AFRC, as Hong Kong's independent regulator of the accounting profession, is entrusted with the statutory duty to initiate investigations into potential misconduct by PIE auditors, registered responsible persons, non-PIE auditors, and professional persons, referring substantiated cases to the Discipline Department for sanctions or escalation to other regulators or law enforcement agencies. ... Stage 4 Further Actions The AFRC may, after considering the investigation report, take one of the following actions: close the case without further action; take such other follow-up actions under the AFRCO as the AFRC considers appropriate; or impose a sanction on, or take an action in relation to, the regulatee investigated under the AFRCO.
AFRC reprimands and fines Forvis Mazars CPA Limited HK$1.4 million and Grant Thornton Hong Kong Limited HK$2.32 million for widespread and systemic failures to archive files on a timely basis
The two firms also admitted breaches of HKSQC 1 5 and HKSQM 1 6 , in that they failed to establish and implement effective policies and procedures which led to the widespread file archive breaches. The sanctions reflect the widespread and systemic nature of the breaches of the above standards by Mazars and Grant Thornton, as well as their different degrees of cooperation. ... The AFRC recognises and values cooperation, and will exercise its discretion to reduce disciplinary sanctions according to the degree of such cooperation. Failure to cooperate is counter-productive and will result in more severe sanctions. We strongly encourage regulatees to pursue cooperation with due care and diligence during both the investigation and discipline stages.”
Guidance Materials
Guidance Materials Policy and Governance Registration Inspection Investigation and Compliance Discipline Policy and Governance Registration Inspection Investigation and Compliance Discipline Policy and Governance Guidance Notes on Change of Auditors Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors Embracing an AI-empowered Future for the Accounting Profession Registration Guide for the Registration of PIE Auditors Guide for the Issuance of Practising Certificates Guide for the Registration of Firm Names and Firms Guide for the Registration of Corporate Practices Guide for the Recognition of PIE Auditors Policy Statement for the Issuance of Practising Certificates Policy Statement for the Registration of Firm Names and Firms Policy Statement for the Registration of Corporate Practices Policy Statement for the Registration of PIE Auditors Policy Statement for the Recognition of Overseas Auditors Inspection Guideline on Notification of Change in Auditor Appointment* Outline of the AFRC’s Inspection Process for PIE Auditors Outline of the AFRC’s Inspection Process for Practice Units that are not PIE Auditors Policy Statement for Inspection of PIE Auditors with respect to PIE Engagements Policy Statement for Inspection of Practice Units with respect to compliance with AntiMoney Laundering and CounterTerrorist Financing Requirements Policy Statement for Inspection of Practice Units with respect to engagements other than PIE Engagements Investigation and Compliance Investigation Policy Statement for PIE Auditors, Non-PIE Auditors and Registered Responsible Persons Investigation Policy Statement for Professional Persons Investigation Policy Statement (in relation to audits or the preparation of specified reports completed for listed entities before 1 October 2019) Enquiry Policy Statement for Listed Entities Discipline Outline of the AFRC’s Disciplinary Process Guidance Note on Cooperation with the AFRC Discipline Policy Statement for PIE Auditors and Registered Responsible Persons Discipline Policy Statement for Professional Persons Sanctions Policy for PIE Auditors and Registered Responsible Persons Sanctions Policy for Professional Persons Guidelines for Exercising the Power to Impose a Pecuniary Penalty for PIE Auditors and Registered Responsible Persons* Guidelines for Exercising the Power to Impose a Pecuniary Penalty for Professional Persons* Guidelines published in the Gazette pursuant to sections 13 and/or 37H of the Accounting and Financial Reporting Council Ordinance (Cap. 588) are marked with an asterisk (*).
AFRC reprimands former CPAs, Mak Kwong Yiu, Chan Lai Yee and Wong Shuk On, for CPA misconduct and imposes fines totalling HK$760,000 following criminal convictions for conspiracy to defraud
AFRC reprimands former CPAs, Mak Kwong Yiu, Chan Lai Yee and Wong Shuk On, for CPA misconduct and imposes fines totalling HK$760,000 following criminal convictions for conspiracy to defraud 18 June 2026 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned Mr Mak Kwong Yiu ( Mak ), Ms Chan Lai Yee ( Chan ) and Ms Wong Shuk On ( Wong ) (collectively, Regulatees ) for CPA misconduct, following an earlier judgment handed down by the Court of Final Appeal ( CFA ) in November 2025 1 , which restored their criminal convictions for conspiracy to defraud handed down by the District Court in 2021. ... In deciding the appropriate disciplinary sanctions, the AFRC has considered all the relevant circumstances, including the nature, seriousness, duration, frequency and impact of the misconduct, as well as the relevant aggravating and mitigating factors. ... Such misconduct – particularly by those in senior executive and management roles – is considered extremely serious, and would ordinarily warrant exclusionary sanctions. However, the Regulatees were professional accountants in business and have never held practising certificates, and ceased to be HKICPA members in 2023.
AFRC reprimands Chan Steven Kwok Keung and Sino Corp CPA Limited and imposes pecuniary penalties totalling HK$100,000 for CPA misconduct
AFRC reprimands Chan Steven Kwok Keung and Sino Corp CPA Limited and imposes pecuniary penalties totalling HK$100,000 for CPA misconduct 12 March 2024 The Accounting and Financial Reporting Council ( AFRC ) has imposed sanctions on Mr Chan Steven Kwok Keung ( Chan ) 1 and Sino Corp CPA Limited ( Sino Corp ) 2 (together, Regulatees ) in relation to the professional irregularity arising from the preparation and issuance of an accountant’s report ( Accountant’s Report ) for a solicitor’s firm ( Law Firm ) 3 for the year ended 31 March 2021 ( Accounting Period ). ... In determining the sanctions imposed, the AFRC had considered all relevant circumstances, including that there is no evidence of intentional, dishonest, deliberate or reckless misconduct, nor evidence of any loss to third parties as a result of the misconduct, as well as the Regulatees’ clean disciplinary record. ... Our rationale for sanctions In deciding the sanctions against the Regulatees, 6 the AFRC considered all relevant circumstances, including: an accountant’s work to undertake a general test examination of a solicitor’s firm’s books of account to determine compliance with the SAR is important, as those are rules designed to prevent a solicitor’s firm from improperly handling client’s money entrusted to the firm.
Press Releases
Press Releases Completed investigation 8 July 2019 Financial Reporting Council publishes consultation conclusions on Proposed Sanctions Guidelines 31 May 2019 Financial Reporting Council welcomes the consultation conclusions on proposed rule changes relating to disclaimer or adverse audit opinion on issuer’s financial statements published by The Stock Exchange of Hong Kong Limited 24 May 2019 The Supervision and Evaluation Bureau of the Ministry of Finance and the Financial Reporting Council of the Hong Kong Special Administrative Region sign a Memorandum of Understanding to promote cross-boundary cooperation and enhance audit quality 22 May 2019 Completed investigation 22 May 2019 FRC Welcomes the Gazettal of the Commencement Notice of Financial Reporting Council (Amendment) Ordinance 2019 17 May 2019
FAQs - Investigations
In relation to PIE auditors and registered responsible persons Pursuant to section 23 of the AFRCO, the AFRC may direct an investigator to carry out an investigation in relation to a PIE auditor or registered responsible person where the AFRC: has reasonable cause to believe that a PIE auditor has carried out a PIE engagement completed on or after 1 October 2019 in a way that is not in the interest of the investing public or in the public interest; has reasonable cause to believe that a provision of the AFRCO may have been contravened by a PIE auditor or registered responsible person; or for considering whether to impose a sanction under section 37D, 37E or 37F of the AFRCO, has reason to inquire into whether a PIE auditor or registered responsible person, or a person while being such an auditor or responsible person, has or had committed a misconduct. ... The AFRC may, having regard to an investigation report: Close the case without further action; Take any follow-up action in accordance with the AFRCO that the AFRC considers appropriate; or Impose a sanction on, or take an action in relation to, the regulate investigated under the AFRCO.