HKICPA (Hong Kong Institute of Certified Public Accountants) said on Wednesday that its disciplinary committee has reprimanded Tam Tak Kuen, Alfred (membership number F02942) and ordered the cancellation of his practising certificate from Nov 21 2017 with no issuance of a practising certificate to him for two years.
In addition, Tam has been ordered to pay a penalty of HK$50,000 and costs of disciplinary proceedings of HK$51,628.
Tam is the sole proprietor of Alfred T.K. Tam & Co. and is responsible for the practice's quality control system. While carrying out a practice review, the reviewer found that the practice failed to establish, maintain and document an effective system of quality control.
Tam was also found to have provided false or misleading answers and/or furnished information recklessly in the electronic practice review self-assessment questionnaire which was submitted to the reviewer.
After considering the information available, the Institute lodged a complaint against Tam under sections 34(1)(a)(vi) and 34(1)(a)(viii) of the Professional Accountants Ordinance.
The disciplinary committee found that Tam failed or neglected to observe, maintain or otherwise apply (i) Hong Kong Standard on Quality Control 1 "Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements"; and (ii) the fundamental principle of integrity under paragraphs 100.5 (a) and 110.2 of the Code of Ethics for Professional Accountants. The Committee further found that, as Tam failed to comply with multiple quality control requirements and the fundamental ethical requirement, he was guilty of professional misconduct.
Having taken into account the circumstances of the case, the Disciplinary Committee made the above order against Tam under section 35(1) of the Ordinance.