Hong Kong Accountant Penalised for Deficiencies in Audit Work

A Disciplinary Committee of the Hong Kong Institute of Certified Public Accountants has ordered CPA Lo Wai Onto pay to the Institute a penalty of HK$25,000 for his failure or neglect to observe, maintain or otherwise apply a professional standard issued by the Institute.

 

In addition, Lo was ordered to pay HK$75,000 towards the costs of the disciplinary proceedings.

 

Lo is the sole proprietor of a firm of certified public accountants, W.O. Lo & Co.

 

The Institute received information about alleged deficiencies in the firm's audit work on an equity interest in an overseas listed associate included in the financial statements of a private company for the year ended 31 December 2009.

 

After considering the information available, the Institute lodged complaints against Lo under section 34(1A) of the Professional Accountants Ordinance.

 

The Disciplinary Committee found, and by Lo's own admission, that he failed or neglected to observe, maintain or otherwise apply a professional standard issued by the Institute, namely, Hong Kong Standard on Auditing 230 "Audit Documentation".

 

Having taken into account the circumstances of the case, the Disciplinary Committee made the above order against Lo under section 35(1) of the ordinance.

 

Under the 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.

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