Institute news

The Institute will launch a newly updated website mid-November. The website will provide an improved user experience through easier navigation and integration with your member’s account to offer you information relevant to your interests. As the first phase of the Institute’s Digital Strategic Plan, this new website will be a platform from which the Institute updates all its digital platforms and provides you with a more user-friendly, user-centric way of accessing the services you need.

AGM booklet and Council election nomination

The Institute sent members the notice of the annual general meeting, to be held on 13 December at the Auditorium of the Institute. Members interested in standing for Council should submit their nomination form by 5:30 p.m. on 19 November. The booklet also includes a message from the President about the Institute’s activities over the financial year and summary financial statements.

Council minutes

The abridged minutes from the July and September Council meetings are now available for members to read. They can be found in the “Members’ area” of the Institute’s website.

Annual Dinner 2018

The Institute’s Annual Dinner will take place on 3 December at the Hong Kong Convention and Exhibition Centre. This year’s theme, Accounting Plus, represents CPAs going beyond their traditional core competencies of accountancy and into higher value-added specializations, ensuring the accounting profession remains a rich and rewarding career. Book your tickets now.

China Today Series

The Institute has launched a new continuing professional development series, the China Today Series, to provide members with insights into the Mainland’s development – and how they can gain from it. The seven-event series, running until December, addresses the latest developments in Mainland China ranging from an overview of the economic outlook, to exploring new business opportunities both inside and outside China, and the continued opening up of the Chinese economy to the world.

2018 SMP Symposium

The SMP Symposium on 30 November will feature updates on topical issues affecting small- and medium-sized practitioners, including taxation, major financial reporting and auditing standards, legislation affecting companies, proposed changes to the Practical Experience Framework, practice review and compliance matters, as well as recent development of the Institute and the International Federation of Accountants. There will also be a session to meet the Legislative Council Functional Constituency – Accountancy Member, the Honourable Kenneth Leung.

The Institute’s dragon boat team at the the CPA Cup – National Day Celebration Dragon Boat Invitational Race 2018

Sports events

The Institute’s dragon boat team participated in the CPA Cup – National Day Celebration Dragon Boat Invitational Race 2018 on 7 October against 15 other teams.

Join us as a CPA running team member for the Standard Chartered Marathon 2019 to give the Institute a better chance to win the “Most Supportive Group Award” and get a booth. With the booth we will be able to provide various on-site support, including storage for 10-kilometre runners, hot food, physiotherapy treatment and more. Register now and also invite your family and friends to join our team.

Good luck to the Institute’s seven teams participating in the Oxfam Trailwalker on 16-18 November. You can read more about what motivates the teams here.

Disciplinary findings

Chang Wai Hang, Alab, CPA

Complaint: Failure or neglect to observe, maintain or otherwise apply the fundamental principle of Professional Behaviour in the Code of Ethics for Professional Accountants and being guilty of dishonourable conduct.

Chang was the sole shareholder and director of a secretarial service company. He handled fund transfers of two companies which represented monies arising from fraudulent investment schemes. In February 2014, Chang was convicted in District Court case DCCC 721/2013 of two counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) and (3) of the Organized and Serious Crimes Ordinance (Cap. 455). He was sentenced to imprisonment for four years and six months. His application for leave to appeal was later dismissed by the Court of Appeal.

Decisions and reasons: Chang’s name was ordered to be removed from the register of CPAs for 10 years with effect from 16 October 2018. Further, Chang was ordered to pay disciplinary proceedings expenses of the Institute of HK$34,432. When making its decision, the Disciplinary Committee considered the particulars in support of the complaint.

Cheung Yiu Hung, CPA (practising)

Complaint: Failure or neglect to observe, maintain or otherwise apply (i) Hong Kong Standard on Quality Control 1 Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements; (ii) Hong Kong Standard on Auditing (HKSA) 500 Audit Evidence; and (iii) HKSA 230 Audit Documentation.

Cheung is the sole proprietor of Y.H. Cheung & Company (practice) and is responsible for the practice’s quality control system and audit engagements. In 2014, a follow-up practice review was conducted to determine whether the practice had taken appropriate actions in response to findings identified during the first practice review in 2013. The findings of the follow-up visit indicated that the practice failed to implement necessary improvements to ensure an adequate system of quality control and address audit deficiencies identified from the first practice review.

Cheung appealed the Disciplinary Committee’s decision. On 31 July 2018, the Court of Appeal handed down its judgment dismissing Cheung’s appeal.

Decisions and reasons: Cheung was reprimanded. The practising certificate issued to Cheung is to be cancelled and no practising certificate shall be issued to him for 18 months. In addition, Cheung was ordered to pay a penalty of HK$50,000 and the costs of disciplinary proceedings of HK$128,636. When making its decision, the Disciplinary Committee took into consideration the particulars in support of the complaint, the parties’ submissions and the conduct of Cheung throughout the proceedings.

Li Kwok Cheung, George, CPA

Complaint: Being guilty of dishonourable conduct.

Li was an executive director of a financial service company which acted as financial adviser to Grand Field Group Holdings Limited, a Hong Kong listed company. In 2002, Grand Field purported to invest in a project that was in fact fictitious. When the Stock Exchange of Hong Kong later investigated Grand Field’s purported investment, Li advised or assisted Grand Field in preparing written responses to the exchange and drafting a public announcement. Hoping to curb continuing queries from the exchange, Li acted with certain other individuals to devise a purported sale of the project which was in reality a sham involving a circular fund flow. The sham sale went ahead in 2003.

Decisions and reasons: Li was removed from the register of CPAs permanently with effect from 21 October 2018. He was also reprimanded and ordered to pay a penalty of HK$375,000 and costs of the disciplinary proceedings of the Institute of HK$221,039.20. The Disciplinary Committee noted this is a serious case involving fraud and dishonesty, in which Li played a central role as a financial adviser. He committed a serious breach of integrity and showed no remorse. The committee considered that a permanent removal from membership was commensurate with Li’s breach and would maintain public confidence in the integrity of the profession.

Details of the disciplinary findings are available at the Institute’s website: www.hkicpa.org.hk.