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Maintaining the Quality of Cross-Border Audit Services

In an announcement published today, the MoF has imposed administrative sanctions against Mainland audit firm PricewaterhouseCoopers Zhong Tian LLP for its serious infractions in the audit work on Hengda Real Estate Group Co Ltd ( Hengda ).

AFRC reprimands MnO CPA Limited and its two directors for audit deficiencies and imposes fines of HK$600,000

AFRC reprimands MnO CPA Limited and its two directors for audit deficiencies and imposes fines of HK$600,000 20 November 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following corporate practice and two of its directors for negligence and multiple breaches of auditing standards in relation to the audit of the consolidated financial statements of a Hong Kong listed company, New Concepts Holdings Limited and its subsidiaries (collectively, Group ), for the year ended 31 March 2017 ( 2017 Audit ): MnO CPA Limited (formerly known as Wellink CPA Limited) (registration no. ... In deciding the appropriate disciplinary sanctions, the AFRC has considered all relevant circumstances, including: the fact that the misconduct involved multiple audit deficiencies; the moderately serious nature of those deficiencies; the fact that the misconduct was limited to a single audit engagement; the absence of any finding of intentional, dishonest or deliberate misconduct; and the clean disciplinary records of all three regulatees.

AFRC reprimands PricewaterhouseCoopers and two others for multiple audit deficiencies and imposes fines totalling HK$1.6 million

AFRC reprimands PricewaterhouseCoopers and two others for multiple audit deficiencies and imposes fines totalling HK$1.6 million 16 October 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE audit firm and two individuals who held partner roles during the relevant audits for multiple audit deficiencies related to revenue recognition involving a Hong Kong listed company, Dynasty Fine Wines Group Limited ( Company ) 1 and its subsidiaries (together, Group ), for the years ended 31 December 2010 and 31 December 2011 ( 2010 Audit and 2011 Audit respectively): PricewaterhouseCoopers ( PwC ); 2 Mr Cheng Kwong On ( Cheng ), 3 engagement partner for the 2010 and 2011 Audits (together with PwC, Auditor ); and Mr Kong Ling Yin, Raymond ( Kong ), 4 engagement quality control reviewer for the 2010 and 2011 Audits. ... In deciding the appropriate disciplinary sanctions, the AFRC has considered all relevant circumstances, including but not limited to, the following factors: there were fundamental breaches of auditing standards across two audit years; the misconduct significantly increased the risk of revenue being misstated, which may potentially affect users’ understanding of the Group’s financial statements, thereby prejudicing the interests of the investing public; and there was no finding of intentional, dishonest or deliberate misconduct.

AFRC reprimands Prism Hong Kong Limited, Kyaw Sai Hong and Yam Wai Man for conducting PIE engagements without the required registrations and imposes pecuniary penalties totalling HK$353,500

AFRC reprimands Prism Hong Kong Limited, Kyaw Sai Hong and Yam Wai Man for conducting PIE engagements without the required registrations and imposes pecuniary penalties totalling HK$353,500 11 September 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the PIE auditor Prism Hong Kong Limited 1 ( Prism ), Mr Kyaw Sai Hong 2 ( Kyaw ) and Mr Yam Wai Man 3 ( Yam ) for conducting various PIE engagements in 2023 without the required registrations, in contravention of sections 20D, 20E and 20V of the Accounting and Financial Reporting Council Ordinance (Cap. 588) ( AFRCO ). ... In deciding the appropriate disciplinary sanctions against the Regulatees, the AFRC has considered all the relevant circumstances, including the nature, seriousness, duration, frequency and impact of the misconduct.

AFRC suspends Lam Kin Choi for 2 years and fines him HK$300,000 for flagrant disregard of two statutory requirements in relation to inspections of two practice units

AFRC suspends Lam Kin Choi for 2 years and fines him HK$300,000 for flagrant disregard of two statutory requirements in relation to inspections of two practice units 28 May 2024 The Accounting and Financial Reporting Council ( AFRC ) has imposed sanctions on Mr Lam Kin Choi (F05649) ( Lam ) for his flagrant disregard of two statutory requirements to produce information and documents for the AFRC’s inspection of his two practice units. ... To reflect the seriousness of Lam’s two counts of misconduct, the AFRC imposed the following sanctions against Lam: (i) public reprimand; (ii) pecuniary penalty of HK$300,000; 4 (iii) suspension of his HKICPA registration for two years; (iv) cancellation of his practising certificate; (v) two-year non-issuance of practising certificate order; and (vi) order for investigation costs and expenses of HK$50,214.

AFRC expects full compliance by auditors with relevant laws and regulations

It has come to the attention of the AFRC that in a recent decision notice, the Supervision and Evaluation Bureau of the Ministry of Finance of the People’s Republic of China has imposed a sanction on an individual certified public accountant in the Mainland for having accepted audit work from a Hong Kong PIE auditor in respect of certain audits of Mainland enterprises listed in Hong Kong on his own account rather than through the Mainland public accounting firm to which he belonged as required under Mainland law.

Regulatory Collaboration Enhances Effectiveness in Audit Regulation

This announcement follows an earlier decision notice by the MoF imposing sanctions on an individual Mainland certified public accountant for accepting audit work from Elite Partners CPA Limited in respect of the 5 audits on his own account rather than through the public accounting firm to which he belonged, in contravention of Mainland law.

AFRC urges auditors and audit committees to follow Guidance Notes on Change of Auditors

We will continue to closely monitor changes of auditors, and will not hesitate to impose appropriate and proportionate sanctions for audit irregularities in engagements resulting from late auditor resignations, up to and including the revocation of the PIE auditor registration.”

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