The Hong Kong Institute of Certified Public Accountants has undertaken regulatory action against Ng Ka Kuen, a practising certified public accountant, and UC CPA Limited for their failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute.
Ng is the sole practising director of the corporate practice.
The institute received information from The Law Society of Hong Kong about deficiencies in the final accountant's report issued by Ng for a solicitors' firm that had ceased business.
The institute found that a number of breaches reported in the final accountant's report were not supported by tests performed and evidence obtained as documented in the working papers.
Ng also failed to include in the report certain information that was required to be reflected in the final accountant's report for a solicitors' firm.
The institute concluded that Ng and the corporate practice were in breach of the Fundamental Principle of Professional Competence and Due Care prescribed in sections 100.5 and 130 of the Code of Ethics for Professional Accountants.
Based on the foregoing and in lieu of further proceedings, the Council concluded that the following should resolve the complaint:
- Ng and the corporate practice acknowledge the facts of the case and their non-compliance with the relevant professional standards;
- They be reprimanded; and
- They jointly pay an administrative penalty of HK$20,000 and costs of HK$10,000.
In accordance with Council powers outlined in the Professional Accountants Ordinance and as a part of the regulatory process to handle complaints, a Resolution by Agreement (RBA) may be offered to respondents in cases considered to be moderate after taking into account factors including, but not limited to, the nature and seriousness of a complaint, past disciplinary records of the respondents and any aggravating or mitigating circumstances.
An RBA will not be offered in cases involving complaints of dishonesty.