Thumbnail: 

A Disciplinary Committee of the Hong Kong Institute of Certified Public Accountants ordered on 1 December 2011 that the name of Lo Kwai Man be permanently removed from the register of certified public accountants with effect from 16 January 2012 and ordered him to pay to the Institute of HK$50,000 ((US$6,425.93)), after finding Lo guilty of dishonourable conduct.

In addition, Lo was ordered to pay the costs of the disciplinary proceedings totaling HK$93,581 (US$12,026.87).

Lo was the financial controller of a company previously listed in the Stock Exchange of Hong Kong. In that position, Lo acquiesced to and participated in a conspiracy with the company's senior management to falsify business documents in relation to the preparation of the company's financial statements for the year ended 31 December 2002.

Lo later acted as a prosecution witness under immunity during the trial of the chairman and an executive director of the company in 2004 on charges of conspiring to use falsified business documents. Those two individuals were eventually convicted and sentenced to imprisonment.

In 2003, the Institute decided to set up an Investigation Committee under the Professional Accountants Ordinance to investigate the involvement of certified public accountants involved in the auditing and preparation of the financial statements of the company, in light of information about the irregularities surfacing in the public at the time.

Upon investigation and having considered the information available, the Investigation Committee lodged a complaint agains Lo in May 2011 under section 34(1) of the Professional Accountants Ordinance in respect of his involvement in the falsification of documents. A Disciplinary Committee was constituted in July 2011.

The Disciplinary Committee found, on evidence submitted and Lo's submission, that Lo was guilty of dishonourable conduct. Having taken into account the circumstances of the case, the Disciplinary Committee made the order as stated above against Lo under section 35(1) of the Professional Accountants Ordinance.

Under the Professional Accountants Ordinance, if Lo is aggrieved by the order, he may give notice of an appeal to the Court of Appeal within 30 days after he is served the order.

MORE ARTICLES ON FRAUD

Quote Image: