• Register
Return to: Home > News > HKICPA takes disciplinary action against Deloitte

HKICPA takes disciplinary action against Deloitte

The Hong Kong Institute of Certified Public Accountants (HKICPA) has fined Deloitte Touche Tohmatsu and three of its staff, Wong Wang Hei, Tsang Yiu Chung, and Lui Chi Wang, for their ‘failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute’.

Wong and Tsang were ordered to pay HK$60,000 ($7,653) each, Lui to pay HK$80,000, and Deloitte to pay HK$150,000. They were also ordered to jointly pay for the cost of the disciplinary proceedings, totalling HK$121,867.70.

Deloitte Audited the financial statements of Hong Kong listed company China Vision Media Group, now known as Alibaba Pictures Group, and its subsidiaries for the four years ended 31 December 2010-2013 and issued unqualified opinions on those financial statements.

Wong and Tsang were engagement partners of the 2010 and 2011 audits, respectively, and Lui was the engagement partner of the 2012 and 2013 audits.

Convertible bonds issued by the company in an acquisition exercise in 2010 were wrongly valued due to the use of incorrect currency exchange rates. This led to the misstatements in goodwill, gain from disposal of subsidiaries, effective interest expenses and exchange differences in the financial statements for the four years.

During the audits, Deloitte identified the misstatements which were ‘clearly not trivial’. However, the firm did not accumulate the misstatements and communicate them to the company’s management, request that management correct the misstatements or request written representation from management.

Deloitte, Wang, Tsang and Lui admitted to the complaints made against them.

IAB has contacted Deloitte for comment and will update this article once a comment has been received.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.