• Register
Return to: Home > News > Advisory > 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

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    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.