A Disciplinary Committee of the Hong Kong Institute of Certified Public Accountants ordered cancellation of the practicing certificate of Lam Kin Kun, Arthur beginning 6 September 2016 with no issuance of a practicing certificate to him for twelve months. In addition, Lam was ordered to pay costs of the disciplinary proceedings totaling HK$37,648.
Lam practiced in his own name on a part-time basis and was subject to a practice review. As a result of Lam's failure to confirm a date for the site visit, the Practice Review Committee issued a direction requiring Lam to cooperate with the reviewer for the purpose of the practice review.
Despite repeated reminders, Lam continued to fail to provide relevant working papers which were necessary for a practice review to be carried out. On the basis of this failure to cooperate, the Institute lodged a complaint against Lam under section 34(1)(a)(v) of the Professional Accountants Ordinance.
The Disciplinary Committee found that Lam without reasonable excuse, failed or neglected to comply with a direction issued by the PRC under section 32F(2)(b) of the Ordinance.
Having taken into account the circumstances of the case, the Disciplinary Committee made the above order against Lam under section 35(1) of the Ordinance.
Under the Ordinance, if Lam 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.
Disciplinary proceedings of the Institute are conducted in accordance with Part V of the ordinance by a five-member Disciplinary Committee. Three members of each committee, including a chairman, are non-accountants chosen from a panel appointed by the Chief Executive of the HKSAR, and the other two are CPAs.
Disciplinary hearings are held in public unless the Disciplinary Committee directs otherwise in the interest of justice. A hearing schedule is available at the Institute's website. A CPA who feels aggrieved by an order made by a Disciplinary Committee may appeal to the Court of Appeal, which may confirm, vary or reverse the order.
Disciplinary Committees have the power to sanction members, member practices and registered students. Sanctions include temporary or permanent removal from membership or cancellation of a practicing certificate, a reprimand, a penalty of up to $500,000, and payment of costs and expenses of the proceedings.