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As a service to our readers, we try to track on this page disciplinary investigations by the Hong Kong Institute of Certified Public Accountants, formerly known as the Hong Kong Society of Accountants. By law, the existence of their investigations is secret, so it is rather like looking at a black hole, but like black holes, you can tell from activities surrounding them that they are there - in this case, court actions from various accounting firms trying to stop the investigations. In 1998, the SEHK referred 11 unnamed cases of alleged false accounting to the HKICPA for action.

So here is an incomplete list of cases which have been referred by various parties (often, the Stock Exchange) to the HKICPA for investigation, and the approximate dates. In some cases, there has been a mild sanction from the HKICPA, often without naming the listed companies the auditor was working for.

Note that with effect from 16-Jul-07, any new cases are first investigated by the Government-appointed Financial Reporting Council, and then any auditing or reporting irregularities are referred back to the HKICPA for possible disciplinary action.

Click on the link to take you to the company page on Webb-site.com, which includes links to relevant court cases.

Company Auditor or Reporting Accountant

Date referred

Climax International Company Limited Arthur Andersen Sep-99
COSCO International Holdings Limited Ernst & Young, PriceWaterhouseCoopers 1-Jun-99
GKC Holdings Limited Deloitte Touche Tohmatsu, Kwan Wong Tan & Fong, BDO Binder 19-Jan-99
Guangnan (Holdings) Limited Deloitte Touche Tohmatsu 8-Mar-99

In addition to the above, we are aware of the following cases which involved allegations of false accounting by the companies, which extended through an audit date, which in our opinion ought to be investigated by the FRC/HKICPA if they have not already done so:

Company Auditor or reporting accountant
Akai Holdings Limited Ernst & Young
EganaGoldpfeil (Holdings) Limited Baker Tilly Hong Kong Ltd, RSM Nelson Wheeler, PricewaterhouseCoopers
Euro-Asia Agricultural Holdings Limited Arthur Andersen & Co
Fu Cheong International Holdings Limited Ernst & Young
Global Trend Intelligent Technologies Limited Ernst & Young
Gold Wo International Holdings Limited Ernst & Young
JW International Holdings Ltd (listing aborted) Arthur Andersen
Moulin Global Eyecare Holdings Limited KPMG
Ocean Grand Chemicals Holdings Limited Moores Rowland Mazars
Ocean Grand Holdings Limited Moores Rowland Mazars
RNA Holdings Limited Ernst & Young
Yue Fung International Group Holding Limited Ernst & Young

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