Logiq Inc (LGIQ)

[GoodGuyBill]

The fines are not large at all. But, given the effects of the coronavirus on the market, there's just too many solid reputable companies out there to invest in that don't have the credibility issues WEYL has.

I've said my piece. I will no longer post here any longer.

Good luck everyone, sincerely.

ggb

What is significant about the HKICPAs action is that they pursued it on an audit of a U.S. listed company. I think this is the first time they have found fault with audit work of a firm that was not based on a Hong Kong report. The penalty is consistent with the profession-friendly self-regulator - the penalty is a reprimand and a fine of HK$25,000 (US$3,200). Contrast that to the PCAOB penalty of banishment and a US$10,000 fine. Hong Kong really needs to up its game in audit regulation.

Barred in the US

On May 16 last year, the PCAOB ruled that the four parties violated its rules and standards as well as those of the US Securities Act in relation to the 2010-2012 financial audit of US-listed firm Kandi Technologies Group. AWC was the company’s external auditor. Wong Chi Wai was engagement director and Chung Mun Leung engagement quality reviewer, while Wong Fei Cheung was director of audit.

The parties settled the case with the PCAOB without admitting or denying the findings, which included failures in identifying related-party transactions, preparing sufficient and appropriate audit documentation, and identifying an independence violation. AWC was fined US$10,000 and had its US registration revoked, with a right to reapply after two years. Wong Chi Wai was also fined US$10,000 and barred from being an associated person in the US, with the right to request lifting the bar after two years.

Fined in Hong Kong

The PCAOB fined Chung Mun Leung and Wong Fei Cheung US$5,000 each, with Chung granted the right to request lifting a bar on being an associated person in the US after two years and Wong after one year. The HKICPA has now fined Centurion and Wong Chi Wai the equivalent of US$3,200 each. In addition, all four respondents were ordered to jointly pay costs of HK$10,000 (US$1,280).

The audit firm and the three accountants were reprimanded, but not barred from practicing in Hong Kong. The Institute exercised its power to offer a Resolution by Agreement “in uncontested cases considered to be moderate after taking into account the nature and gravity of the complaint, past disciplinary records of the Respondent and any aggravating or mitigating circumstances.”

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