Latest news with #ChanKamFuk
Yahoo
5 days ago
- Business
- Yahoo
PCAOB permanently revokes Hong Kong company's registration over audit violations
The US Public Company Accounting Oversight Board (PCAOB) has permanently revoked the registration of Hong Kong-based Centurion ZD CPA & Co and barred its owner, Chan Kam Fuk, for violating audit rules. The action is related to their audit work for companies operating in China, including Luckin Coffee. Centurion ZD CPA & Co and Chan have been sanctioned with a $75,000 civil penalty for failing to perform adequate risk assessments and obtain sufficient audit evidence in audits for three companies. According to the PCAOB, these failures were evident in the 2021 audit of Luckin Coffee, following a 2020 investigation revealing fabricated transactions by Luckin. Despite Luckin Coffee's previous settlement of accounting fraud charges with the US Securities and Exchange Commission, Centurion ZD CPA & Co did not adequately address fraud risks in subsequent audits, the organisation said. The PCAOB's sanctions include a permanent revocation of the company's registration and a permanent bar against Chan. The company and Chan's violations extended to audits of a second Chinese company and audit procedures for subsidiaries of a Malaysian company. It said that they failed to obtain sufficient audit evidence and did not make required communications to audit committees, violating PCAOB standards. The PCAOB found further violations in how the company reported audits of two Chinese public companies, failing to comply with PCAOB rules in filing necessary forms. Chan was held directly responsible for these audit reporting violations. The company's numerous violations indicate a lack of quality control, and failing to ensure personnel had the required technical proficiency and that professional standards were met. Without admitting or denying the findings, Chan and the company consented to the PCAOB's order. Recently, the PCAOB imposed sanctions on PWR CPA over violations of its rules during the 2022 audit of Ainos. Additionally, the company faced repercussions for consistently failing to meet reporting requirements in audits of four other issuers. "PCAOB permanently revokes Hong Kong company's registration over audit violations " was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
6 days ago
- Business
- Yahoo
US audit watchdog bars, fines Hong Kong auditor
NEW YORK (Reuters) -The U.S. Public Company Accounting Oversight Board said on Tuesday it had revoked the license of a Hong Kong firm and barred its owner for violating audit rules related to companies operating in China, including Luckin Coffee Inc. The PCAOB said in a statement it had sanctioned Centurion ZD CPA & Co and its owner Chan Kam Fuk and hit them with a civil penalty of $75,000 for violating the board's rules and standards in connection with its audit work for three firms. The auditor failed to properly assess risk and get sufficient audit evidence from Luckin in a 2022 opinion of the firm's 2021 financial reporting, the PCAOB said. The Chinese coffee firm in 2020 had settled accounting fraud charges with the SEC. The firm and Chan failed to use information about the fraud in the subsequent year's audit, PCAOB said. Centurion also violated PCAOB standards in connection with the audit of a second Chinese company and with audit procedures for some subsidiaries of a Malaysian firm, the PCAOB said. Chan and Centurion did not admit or deny the findings. A lawyer for both did not respond immediately to request for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
US audit watchdog bars, fines Hong Kong auditor
NEW YORK, July 22 (Reuters) - The U.S. Public Company Accounting Oversight Board said on Tuesday it had revoked the license of a Hong Kong firm and barred its owner for violating audit rules related to companies operating in China, including Luckin Coffee Inc. The PCAOB said in a statement it had sanctioned Centurion ZD CPA & Co and its owner Chan Kam Fuk and hit them with a civil penalty of $75,000 for violating the board's rules and standards in connection with its audit work for three firms. The auditor failed to properly assess risk and get sufficient audit evidence from Luckin in a 2022 opinion of the firm's 2021 financial reporting, the PCAOB said. The Chinese coffee firm in 2020 had settled accounting fraud charges with the SEC. The firm and Chan failed to use information about the fraud in the subsequent year's audit, PCAOB said. Centurion also violated PCAOB standards in connection with the audit of a second Chinese company and with audit procedures for some subsidiaries of a Malaysian firm, the PCAOB said. Chan and Centurion did not admit or deny the findings. A lawyer for both did not respond immediately to request for comment.
