The Hong Kong Institute of Certified Public Accountants has undertaken regulatory action against Ng Ka Kuen, a practicing certified public accountant of UC CPA Limited and Ko Shun CPA & Company for failure or neglect to observe, maintain or otherwise apply professional standards issued by the Institute.
Ng is the sole proprietor of UC CPA Limited and Ko Shun CPA & Company. In auditing the financial statements of a private company for each of the years ended 31 December 2009 to 2014, the respondent failed to report in the auditor's reports the company's non-compliance with accounting standards relating to financial statement presentation and disclosure and a violation of the Companies Ordinance on payment of dividends whilst the Company had incurred accumulated losses.
The Institute concluded that the Respondent was in breach of the fundamental principle of "Professional Competence and Due Care" under sections 100.5(c) and 130.1 of the Code of Ethics for Professional Accountants.
In lieu of further proceedings, the respondent will be reprimanded; and shall pay an administrative penalty of HK$50,000 and costs of HK$10,000.