Council election and annual general meeting
Institute members are encouraged to exercise their right by selecting seven candidates to join the Council. Votes can be casted either by e-voting or ballot paper, but not both, by 5:30 p.m. on 7 December.
The Institute’s 48th annual general meeting (AGM) will take place on 10 December. This year, special arrangements with pre-registration and live streaming of the event have been made given the COVID-19 pandemic, and to ensure the safety of attendants. Visit the Institute’s website for more details on registration, submission of questions prior to the AGM, and the proxy form. The deadline for in-person attendance registration is 3 December, and the deadline for live webcast registration and submitting questions is 8 December.
Membership renewal
Members are required to file their annual return with continuing professional development (CPD) declaration by 15 December to renew their membership. This year, the Council has granted one-off concessions, including waiving the capital levy. Members who joined the Institute before 1 December 2017 are required to complete 120 hours of CPD in the three years ending 30 November 2020, of which 60 hours must be verifiable. Members having difficulties in achieving the CPD requirements for their 2021 membership renewal may apply for an extension to make up for the shortfall in CPD hours.
Mentorship Programme now open for applicants
The Institute’s 2021-22 Mentorship Programme is now accepting applications from aspiring members who are interested in developing their careers as mentees, and experienced members looking to inspire future CPAs as mentors.
Members with less than seven years of post-qualification experience may apply to become a mentee, while those with seven or more years, a mentor. Mentees’ applications are accepted on a first-come-first-served basis, subject to a successful matching process. Mentors will be awarded up to five non-verifiable CPD hours on guiding a mentee during the one-year mentorship process and up to three verifiable CPD hours for attending mentorship related briefings.
Those interested should complete the online application by 15 January 2021. Visit the dedicated Mentorship Programme webpage on the Institute’s website to learn more about the programme and how it has benefitted both mentees and mentors.
Compliance department operations report now available
The Institute’s Compliance Department has published its 2020 Operations Report, which outlines the department’s key activities for the 18 months ended 30 June 2020. The report also features the process reviews of the department’s operations carried out by the Regulatory Oversight Board. The report is available here.
Financial tips from CPAs
In the Institute’s new video series, young members of the Institute share financial tips. The first episode offers three simple tips to curb overspending habits. Watch now and share its smart spending tips with your family and friends.
COVID-19 PAIB survey report
The Institute conducted a survey of professional accountants in business members, about the impact of the COVID-19 pandemic on their organizations, operations and business strategies. It is available to read on the Institute’s website. Read more about the key highlights of the report here.
Resolutions by Agreement
Lam Albert Man Sum, CPA (practising)
Complaint: Failure or neglect to observe, maintain or otherwise apply the fundamental principle of Professional Competence and Due Care in the requirement R113.1 of the Code of Ethics for Professional Accountants.
Lam issued an accountant’s report for a solicitors’ firm under the Accountant’s Report Rules (Cap. 159A). In conducting the reporting engagement, Lam failed to comply with the Institute’s Practice Note (PN) 840 (Revised) Reporting on Solicitors’ Accounts under the Solicitors’ Accounts Rules and the Accountant’s Report Rules. The deficiencies related to lack of procedures for accepting and planning the engagement, agreeing the terms of the engagement in the form of an engagement letter, and lack of tests or procedures to evaluate if the solicitors’ firm had complied with the requirements under the Solicitors’ Accounts Rules (Cap. 159F).
Regulatory action: In lieu of further proceedings, the Council concluded the following action should resolve the complaint:
1. Lam acknowledges the facts of the case and his non-compliance with professional standards;
2. Lam be reprimanded; and
3. Lam pays an administrative penalty of HK$40,000 and costs of the Institute of HK$15,000.
Lui Tin Nang, CPA (practising)
Complaint: Failure or neglect to observe, maintain or otherwise apply the fundamental principle of Professional Competence and Due Care in sections 110.1 A1(c) and R113.1 under Chapter A of the Code of Ethics for Professional Accountants.
Lui issued an accountant’s report for a solicitor’s firm under the Accountant’s Report Rules (Cap. 159A). In conducting the reporting engagement, he failed to comply with the rules and the Institute’s PN 840 (Revised) Reporting on Solicitors’ Accounts under the Solicitors’ Accounts Rules and the Accountant’s Report Rules. Lui did not adequately inquire into the reasons for certain long outstanding client account balances and unpresented cheques made out to clients. He also failed to resolve an inconsistency in the results of client account circularization. Lastly, he failed to document a number of procedures he carried out in support of the accountant’s statement in the accountant’s report.
Regulatory action: In lieu of further proceedings, the Council concluded the following action should resolve the complaint:
1. Lui acknowledges the facts of the case and his non-compliance with professional standards;
2. Lui be reprimanded; and
3. Lui pays an administrative penalty of HK$25,000 and costs of the Institute of HK$15,000.
Wong Ka Chung, CPA (practising) and Pondus (CPA) Limited
Complaint: Failure or neglect to observe, maintain or otherwise apply Hong Kong Standard on Auditing (HKSA) 230 Audit Documentation, HKSA 500 Audit Evidence and HKSA 520 Analytical Procedures.
Pondus was the auditor of a private company and issued an unmodified auditor’s opinion on each of the company’s financial statements for the years ended 31 March 2016 to 2019. Wong was the engagement director and signed the auditor’s reports on behalf of Pondus.
In the performance of the audits, the respondents failed to prepare adequate documentation and perform adequate procedures on the company’s bank accounts, membership fee income, ongoing litigations and certain expense items.
Regulatory action: In lieu of further proceedings, the Council concluded the following should resolve the complaint:
1. The respondents acknowledge the facts of the case and their non-compliance with professional standards;
2. They be reprimanded; and
3. Each of the respondents pays an administrative penalty of HK$30,000, and they jointly pay the Institute’s costs of HK$15,000.
Disciplinary finding
Wong Man Ki, CPA (practising)
Complaint: Failure or neglect, without reasonable excuse, to comply with a direction issued by the Practice Review Committee (PRC) under section 32F(2)(b) of the Professional Accountants Ordinance.
Wong had been practising in her own name on a part-time basis and was subject to a practice review. The practice reviewer made numerous attempts to obtain information from Wong for the purpose of the review. However, Wong refused to provide the information requested.
Subsequently, the PRC issued a direction under section 32F(2)(b) of the ordinance to Wong requiring her to cooperate with the Institute to facilitate a practice review and provide certain information for the review. Wong did not comply with the direction.
Decisions and reasons: Wong was reprimanded, her practising certificate was cancelled and her name was removed from the register of CPAs for three years with effect from 28 October 2020. In addition, Wong was ordered to pay a penalty of HK$30,000 and costs of the disciplinary proceedings of HK$55,105. When making its decision, the Disciplinary Committee took into consideration the particulars of the breaches committed in this case and Wong’s conduct throughout the proceedings.
Details of the Resolutions by Agreement and disciplinary finding are available at the Institute’s website.
