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Hong Kong’s audit regulator imposed a combined HK$1.9 million (US$245,000) fine on Deloitte Touche Tohmatsu and two of its partners for multiple audit deficiencies related to two former listed companies from 2011 to 2013, the authority said on Thursday.
“The successful completion of these disciplinary cases attests to the effectiveness of the memorandum of understanding signed between the MOF and AFRC in 2019 in strengthening public trust in financial reporting and investor confidence,” said council CEO Janey Lai Chui-pik in a statement.
“Given that a large proportion of listed companies in Hong Kong are based in mainland China, accessing the relevant audit working papers from the mainland is vital for our investigative and disciplinary work.”
The AFRC handed Deloitte a fine of HK$1.16 million, while two partners, Samuel Wong Tin-chak and Mak Chi-lung, were asked to pay HK$416,000 and HK$336,000, respectively. The regulator also reprimanded them.
Wong was the engagement partner for Tianhe Chemicals Group on its annual financial audits from 2011 to 2013, which was the tracking period in its listing prospectus for its initial public offering (IPO) in 2014 that raised HK$3.52 billion. Mak was the engagement partner for the 2012 and 2013 annual audits for Sound Global Group, a waste water treatment firm.
