Member’s name: Mr Ying Kit Chan CPA
Date of Hearing: 7 March 2018
Division: Hong Kong
Tribunal: Disciplinary Tribunal
On 7 March 2018 the Disciplinary Tribunal found Mr Ying Kit Chan breached Article 39(a)(ii)F of the Constitution in that he was the subject of an adverse finding that had not been overturned on appeal in respect of Reasons for Decision and Order of a Disciplinary Committee of the Hong Kong Institute of Certified Public Accountants (HKICPA) on 8 March 2016, which found Mr Chan:
- failed or neglected to observe, maintain or otherwise apply paragraph 2 of Hong Kong Standard on Auditing 500 ‘Audit Evidence’, in that he did not obtain sufficient appropriate audit evidence for the ‘Project costs & facilitation fees’ in order to be able to draw reasonable conclusion on which to base the audit opinion
- failed or neglected to observe, maintain or otherwise apply paragraph 11, 13 and/ or 17 of Hong Kong Standard on Auditing 700 ‘Forming an Opinion and Reporting on Financial Statements’, in respect of the balance of investment in subsidiary companies, he had not properly assessed the adequacy of disclosures and had not obtained sufficient evidence to conclude that the financial statements were free of material misstatements.
Mr Chan did not attend the Disciplinary Tribunal Hearing.
Penalty and costs
The Disciplinary Tribunal found the Complaint sustained and imposed the penalty of a severe reprimand.
Mr Chan was ordered to pay CPA Australia’s costs of HK$4874.97.