Flagship fashion - Hong Kong Institute of Certified Public Accountants

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Your chop Your Logo ILLUSTRATION: ER GRAFIX About our name: A PLUS stands for excellence, a reference to our top-notch accountant members who are success ingredients in business and in society. It is also the quality that we strive for in this magazine – going an extra mile to reach beyond grade A. President: Keith Pogson Email: president@hkicpa.org.hk Vice Presidents: Susanna Chiu, Clement Chan Chief Executive and Registrar: Winnie C.W. Cheung Email: ce@hkicpa.org.hk Director of Communications: Mindee W. Hansen Editorial Adviser: Daniel Lin Editorial Manager: John So Editorial Coordinator: Maggie Tam OFFICE ADDRESS: 37/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Tel: +852-2287-7228 Fax: +852-2865-6603 MEMBER AND STUDENT SERVICES COUNTER: 27/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong WEBSITE: www.hkicpa.org.hk EMAIL: hkicpa@hkicpa.org.hk M&L Managing Editor: Gerry Ho Email: gerry.ho@mandl.asia Copy Editor: Reno Ong Editor at Large: George W. Russell Production Manager: Jasmine Hu Contributors: Jo Bowman, Liana Cafolla Design Manager: Fung King-ting Editorial Assistant: Jennifer Choy EDITORIAL OFFICE: 2/F, Wang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong ADVERTISING ENQUIRIES: Advertising Director: Derek Tsang Email: derek.tsang@mandl.asia Tel: +852-2656-2676 A PLUS is the official magazine of the Hong Kong Institute of Certified Public Accountants. The Institute retains copyright in all material published in the magazine. No part of this magazine may be reproduced without the permission of the Institute. The views expressed in the magazine are not necessarily shared by the Institute or the publisher. The Institute, the publisher and authors accept no responsibilities for loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in the magazine. © Hong Kong Institute of Certified Public Accountants May 2012. Print run: 50,440 copies Subscription: HK$760 for 12 issues per year. See www.hkicpa.org.hk/aplus for details.
Disciplinary findings Chan Wing-kui, CPA Complaint: Chan was involved as a financial controller of a company that was preparing for a listing application with the Hong Kong stock exchange at the time when he joined the company. In 2007, he was convicted of two counts of conspiracy to defraud the shareholders and other parties by inflating the turnover and profit figures shown in the company’s published financial statements following the company’s successful listing, and to defraud a bank by applying for a letter of credit when there was no genuine underlying commercial transaction. Chan was sentenced to imprisonment for six years and three months. Chan admitted the complaint. Decision and reasons: Chan’s name shall be removed from the register for a period of five years. Chan shall also pay the Institute a penalty of HK$100,000 and HK$30,000 towards costs of the disciplinary proceedings. The Disciplinary Committee took Chan’s convictions, personal circumstances and conduct during the proceedings into consideration when making its decision. Lam Man-sum, Albert, CPA (practising) Hopkins CPA Limited Complaint: Noncompliance with Hong Kong Standard on Auditing 230 “Audit Documentation” and Statement of Auditing Standards 510 “Principal auditors and other auditors.” Hopkins audited the financial statements of a listed company in Hong Kong for the year ended 31 December 2008. Lam was the managing director of Hopkins and signed the relevant auditors’ report. The Financial Reporting Council’s investigation of the audit revealed that Hopkins had not properly documented the nature, timing and extent of the audit procedures performed and the conclusion reached on its review of the audit work carried by the auditors of a material subgroup of the listed company in accordance with HKSA 230 and SAS 510. Decision and reasons: Lam and Hopkins were reprimanded and ordered to pay the 6 May 2012 NEWS THE INSTITUTE Institute issues 2011 quality assurance annual report Findings of practice reviews positive The Institute published its 2011 quality assurance annual report last month, detailing the findings from its practice review programme and professional standards monitoring. The practice review programme inspected the work of 180 audit practices, while the professional standards monitoring scrutinized more than 80 published financial reports. The report noted that, as a whole, the practice review findings were positive. Meanwhile, the findings of the professional standards monitoring were satisfactory because a relatively small percentage of cases required follow-up action or investigation. The report notes that the application of some standards continues to be problematic but that companies are making progress. Practice reviews inspect the work quality of auditors and have two jobs: to educate audit firms and to regulate them. Professional standards monitoring looks at the financial reporting of listed companies and aims to improve reporting quality for owners and management of companies, investors and other stakeholders. The Institute believes high-quality auditing and reporting are the bedrock of Hong Kong’s status as an international financial centre. Technical bulletin for auditors at AGMs The Institute has issued a guide for members acting as auditors who need to respond to shareholders’ questions at listed companies’ annual general meetings. Under the Hong Kong stock exchange’s revised corporate governance code, effective from 1 April, the external auditor must attend the AGM of the listed company that he or she has audited, to answer questions relevant to the conduct of the audit and the content of the auditor’s report. Auditing and Assurance Technical Bulletin 2 guides members on what to do at AGMs, but is not a standard and members are advised to use their judgment. (See Tech Q&A on page 48 for more details.) Disciplinary findings (continued) Institute a penalty of HK$35,000 and HK$29,200 towards the costs of the disciplinary proceedings and pay the Financial Reporting Council HK$51,700 towards the costs of the investigation. When making its decision, the Disciplinary Committee took into consideration the particulars in support of the complaint, the nature of the breaches and the conduct of Lam and Hopkins throughout the proceedings. Details of the disciplinary findings are available on the Institute’s website: www.hkicpa.org.hk
Page 1 and 2: ISSUE 5 VOLUME 8 MAY 2012 HK$70.00
Page 3: REGULARS 01 President’s message 0
Page 7 and 8: India soothes fears its economy is
Page 9 and 10: NEWS GREATER CHINA Hong Kong exchan
Page 11 and 12: SFC launches consultation on rules
Page 13 and 14: ALL EARS With the Big Four posting
Page 15 and 16: evenues are, in many cases, behind
Page 17 and 18: Venture capital 22 May 2012
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Page 21 and 22: Success ingredient Joseph Wan Group
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Page 25 and 26: Success ingredient 30 May 2012
Page 27 and 28: Energy 32 May 2012 THE PRICE OF POW
Page 29 and 30: Energy China Renewable Energy Socie
Page 31 and 32: Energy Share of total primary energ
Page 33 and 34: It is peak season, and dawn has sca
Page 35 and 36: sure is to bring nature into the of
Page 37 and 38: Hong Kong tax New treatment of shar
Page 39 and 40: 114 TechWatch The latest standards
Page 41 and 42: Tech Q&A The Hong Kong stock exchan
Page 43 and 44: Events Your guide to courses, works
Page 45 and 46: Previous page: The entrance to the
Page 47 and 48: The statement of understatement Sim

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