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AFRC continues to take robust enforcement actions against registration and independence breaches
Consideration of Sanctions In determining the appropriate sanctions for the three cases, the AFRC considered the nature, seriousness, duration, frequency and impact of the misconduct.
FRC issues (i) Consultation Conclusions and (ii) the 2021 Annual Inspection Report
The Consultation Conclusions The Consultation Conclusions sets out the FRC’s conclusions to the consultation relating to its disciplinary process and sanctions approach in the Consultation Paper . ... In particular, respondents generally agreed that the proposed disciplinary process is transparent, fair and provides a reasonable opportunity to be heard to regulatees, and were supportive of the principle-based approach to sanctions to achieve effective regulatory outcomes.
Bogus Accountants
The AFRC would also emphasise the importance of complying with the registration requirements for PIE engagements; and has since sanctioned two registered PIE auditors for failing to register their respective engagement partners and/or engagement quality control reviewers (of the respective registered PIE auditors concerned) before undertaking any activities in such capacities. ... If the case involves potential misconduct by a regulatee of the AFRC (including a certified public accountant), the AFRC has the power to investigate the case and impose sanctions on the regulatee. Q7.
AFRC reprimands and fines Deloitte and two engagement partners over HK$1.9 million for multiple audit deficiencies in relation to two companies formerly listed in Hong Kong
AFRC reprimands and fines Deloitte and two engagement partners over HK$1.9 million for multiple audit deficiencies in relation to two companies formerly listed in Hong Kong 28 August 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE audit firm and its two partners for multiple audit deficiencies related to revenue recognition and other breaches involving two companies formerly listed in Hong Kong: Deloitte Touche Tohmatsu ( Deloitte ), as the reporting accountants preparing the accountants’ report of Tianhe Chemicals Group Limited 1 and its subsidiaries ( Tianhe Group ) for the years ended 31 December 2011, 2012 and 2013 included in the prospectus for the company’s initial public offering ( IPO ), and the auditor of Sound Global Limited 2 and its subsidiaries ( Sound Global Group ) for the years ended 31 December 2012 and 2013; Mr Wong Tin Chak Samuel ( Wong ), engagement partner for the 2011, 2012 and 2013 audits of the Tianhe Group; and Mr Mak Chi Lung ( Mak ), engagement partner for the 2012 and 2013 audits of the Sound Global Group. ... In deciding the appropriate disciplinary sanctions in each case, the AFRC has considered all the relevant circumstances, including the nature, seriousness, duration, frequency and impact of the misconduct.
Accounting and Financial Reporting Council
Discipline Disciplinary actions address misconduct promptly, using appropriate sanctions to deter wrongdoing and protect investors.
Accounting and Financial Reporting Council
Discipline Disciplinary actions address misconduct promptly, using appropriate sanctions to deter wrongdoing and protect investors.
Inspection Process
Follow-up actions Having regard to the final inspection report, and the auditor's proposed remedial actions (if any), the AFRC will determine whether to take any follow-up actions under sections 21H and/or 20ZZE of the AFRCO, including: a. requiring the auditor to take a measure or corrective action; b. conducting a further inspection; c. initiating an investigation; d. imposing a sanction; and/or e. any other follow-up action that the AFRC considers appropriate.
FAQs - Local PIE Auditor
The AFRC will generally focus on matters that are current and relevant, in particular disciplinary records resulted in the past 5 years and any uncompleted sanctions. 16. Is there any deadline to inform the AFRC of the cessation of registration of responsible person(s)? ... The following information is included in the register of registered PIE auditors: the full name of the auditor and each registered responsible person of the auditor; the business address of the auditor; the conditions imposed by the AFRC in relation to the registration of the auditor (including conditions relating to the registered responsible persons of the auditor), if any; the day on which the registration of the auditor expires; a record of: the sanctions imposed or actions taken under Division 2 or 3 of Part 3B of the AFRCO (except a private reprimand); and the orders made under section 35 of the Professional Accountants Ordinance (Cap.50) as in force before 1 October 2022 in relation to the auditor, or any registered responsible person of the auditor, within the last 5 years, if any.