KPMG (HK)
KPMG, Jacky Muk Chung Wing and Wong Sau Ling fined for non-compliance with professional standards
HKICPA, 11-May-2022
This was a pretty basic mistake on the 2015 audit of China Environmental Technology and Bioenergy (1237), which failed to correctly adjust EPS for a bonus issue and open offer. Ms Wong was also fined in Dec-2019 and Jun-2021, so this is her third sanction in under 3 years.
HKICPA, 11-May-2022
This was a pretty basic mistake on the 2015 audit of China Environmental Technology and Bioenergy (1237), which failed to correctly adjust EPS for a bonus issue and open offer. Ms Wong was also fined in Dec-2019 and Jun-2021, so this is her third sanction in under 3 years.
KPMG Partner Irene Chu Ngar Yee fined HK$100k for non-compliance with professional standards
HKICPA, 22-Apr-2022
Awkward: we note that she is a Govt-appointed member of the Financial Reporting Review Panel, which investigates HK-listed companies for non-compliance with financial reporting requirements.
HKICPA, 22-Apr-2022
Awkward: we note that she is a Govt-appointed member of the Financial Reporting Review Panel, which investigates HK-listed companies for non-compliance with financial reporting requirements.
HKICPA fines KPMG, June Yu Yuk Ping & Yu Wai Sum HK$1m total, plus HK$5m costs
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
Court of Appeal grants HK$622m compensation orders against ex-directors of EganaGoldpfeil (Holdings) Ltd
| Judgment
SFC, 29-Jun-2021
It's almost 14 years since Webb-site blew the whistle on this. No criminal charges were ever laid.
SFC, 29-Jun-2021
It's almost 14 years since Webb-site blew the whistle on this. No criminal charges were ever laid.
HKICPA fines KPMG, Fung Kwong Ming, Wong Sau Ling & Aloysius Tse Hau Yin for Moulin (ex-0389) audits
HKICPA, 18-Jun-2021
16 years after the 2005 collapse of Moulin, HKICPA finally got around to sanctioning the auditors from 1999-2001. Ms Wong was also fined in Dec-2019 over the audits of Modern Beauty Salon (0919). Mr Tse, who retired from KPMG in 2003, is currently an INED of 6 listed companies.
HKICPA, 18-Jun-2021
16 years after the 2005 collapse of Moulin, HKICPA finally got around to sanctioning the auditors from 1999-2001. Ms Wong was also fined in Dec-2019 over the audits of Modern Beauty Salon (0919). Mr Tse, who retired from KPMG in 2003, is currently an INED of 6 listed companies.
KPMG supports one Country, three singing accountants
But are they tenors? Harmonising in the annual report of Shenwan Hongyuan (6806). Also, HK is "overseas" from PRC - so not part of it then? (12-Nov-2020)
But are they tenors? Harmonising in the annual report of Shenwan Hongyuan (6806). Also, HK is "overseas" from PRC - so not part of it then? (12-Nov-2020)
SFC obtains disqualification orders against ex-directors of EganaGoldpfeil
| Egana and Upbest
SFC, 11-May-2020
Almost 13 years after Webb-site blew the whistle on this fraudulent firm, which promptly collapsed, 3 of the culprits are banned as directors for 6-9 years. No compensation order is made. We remain surprised that no criminal charges were made.
SFC, 11-May-2020
Almost 13 years after Webb-site blew the whistle on this fraudulent firm, which promptly collapsed, 3 of the culprits are banned as directors for 6-9 years. No compensation order is made. We remain surprised that no criminal charges were made.
HKICPA fines Kwee Wei, Wong Sau Ling and KPMG (HK)
HKICPA, 20-Dec-2019
For bad audits of Modern Beauty Salon (0919) in 2014-2017.
HKICPA, 20-Dec-2019
For bad audits of Modern Beauty Salon (0919) in 2014-2017.
Re Mark Taylor Simpson QC
HK Court of First Instance, 31-Oct-2019
The liquidators of China Forestry Holdings Co Ltd apply to admit a UK silk to help them sue KPMG, the auditor, for over HK$1.3bn. Acting Chief Judge Jeremy Poon rejects the proposition that Solicitor-Advocates, who now have rights of audience, are an acceptable alternative to junior barristers to assist the QC. The Bar Council sent 2 Senior Counsel and 2 juniors to oppose the application, while the Secretary for Justice supported it. The quasi-trade union wins. Mr Simpson must be assisted by local barristers.
HK Court of First Instance, 31-Oct-2019
The liquidators of China Forestry Holdings Co Ltd apply to admit a UK silk to help them sue KPMG, the auditor, for over HK$1.3bn. Acting Chief Judge Jeremy Poon rejects the proposition that Solicitor-Advocates, who now have rights of audience, are an acceptable alternative to junior barristers to assist the QC. The Bar Council sent 2 Senior Counsel and 2 juniors to oppose the application, while the Secretary for Justice supported it. The quasi-trade union wins. Mr Simpson must be assisted by local barristers.
China Medical Technologies, Inc v the partners of KPMG HK
HK Court of First Instance, 9-Jan-2019
And the moral of the story is: if you don't want personal liability for the work of your partners, then don't practice as a partnership; incorporate.
HK Court of First Instance, 9-Jan-2019
And the moral of the story is: if you don't want personal liability for the work of your partners, then don't practice as a partnership; incorporate.
Cogobuy (0400): breach of Listing Rules: late disclosure of loans to Blueberry Capital Ltd
Company announcement, 22-Jan-2018
Cogobuy reveals that during 2017 it granted a US$230m loan facility to Blueberry. KPMG quit as auditors 5 weeks ago citing insufficient information to be satisfied that the loans were properly accounted for. Cogobuy again fails to mention that the BVI firm was a cornerstone investor in its 2014 IPO. The owner(s) of this firm have not been disclosed. We note that Viewtran Group Inc, a former NASDAQ firm controlled by Jeffrey Kang, Cogobuy's CEO, sold substantially all its assets to Blueberry in 2015 for US$70m before delisting and retaining the proceeds. This is the only other reference to Blueberry that we can find online. So who owns it, Mr Kang?
Company announcement, 22-Jan-2018
Cogobuy reveals that during 2017 it granted a US$230m loan facility to Blueberry. KPMG quit as auditors 5 weeks ago citing insufficient information to be satisfied that the loans were properly accounted for. Cogobuy again fails to mention that the BVI firm was a cornerstone investor in its 2014 IPO. The owner(s) of this firm have not been disclosed. We note that Viewtran Group Inc, a former NASDAQ firm controlled by Jeffrey Kang, Cogobuy's CEO, sold substantially all its assets to Blueberry in 2015 for US$70m before delisting and retaining the proceeds. This is the only other reference to Blueberry that we can find online. So who owns it, Mr Kang?
KPMG quits as Cogobuy (0400) auditor, questioning loans to Blueberry Capital Ltd
Company announcement, 15-Dec-2017
KPMG say they have not been given sufficient information about certain loans granted by Cogobuy to Blueberry Capital Limited during 2017. Cogobuy doesn't mention that Blueberry Capital Limited was a cornerstone investor in its IPO in 2014. Its owner(s) have not been disclosed.
Company announcement, 15-Dec-2017
KPMG say they have not been given sufficient information about certain loans granted by Cogobuy to Blueberry Capital Limited during 2017. Cogobuy doesn't mention that Blueberry Capital Limited was a cornerstone investor in its IPO in 2014. Its owner(s) have not been disclosed.
China Medical Technologies, Inc. v KPMG
HK Court of First Instance, 12-Jan-2017
The liquidators continue their struggle to extract information from KPMG, which claims "state secrets" prevent it from co-operating.
HK Court of First Instance, 12-Jan-2017
The liquidators continue their struggle to extract information from KPMG, which claims "state secrets" prevent it from co-operating.
HKICPA disciplines Leung Sze Chit, of KPMG/Hontex fame
| Reasons
HKICPA, 9-Aug-2013
By a 4:1 majority - one unnamed member of the Disciplinary Committee dissented and opined that "another more cuplable person in the whole matter as revealed in the evidence before this Committee should have been pursued".
HKICPA, 9-Aug-2013
By a 4:1 majority - one unnamed member of the Disciplinary Committee dissented and opined that "another more cuplable person in the whole matter as revealed in the evidence before this Committee should have been pursued".
SFC revokes licence of Mega Capital (Asia) Co Ltd, fines it HK$42m for Hontex mess
SFC, 22-Apr-2012
Mega Capital denies all allegations of wrongdoing. The timing of this announcement, made at 4pm on a Sunday afternoon, may be intended to buttress the case for greater sponsor liability in a consultation paper expected soon. Some of the allegations though, appear to relate to accounting data, the verification of which should have been the purview of reporting accountants KPMG. The SFC does not regulate accountants.
SFC, 22-Apr-2012
Mega Capital denies all allegations of wrongdoing. The timing of this announcement, made at 4pm on a Sunday afternoon, may be intended to buttress the case for greater sponsor liability in a consultation paper expected soon. Some of the allegations though, appear to relate to accounting data, the verification of which should have been the purview of reporting accountants KPMG. The SFC does not regulate accountants.
Sun Art (6808) listing delayed: EPS calculations were wrong
Company announcement, 15-Jul-2011
The Reporting Accountants are KPMG, who ought to know better.
Company announcement, 15-Jul-2011
The Reporting Accountants are KPMG, who ought to know better.
Qunxing Paper (3868): KMPG disclaims audit opinion
Company announcement, 31-Mar-2011
"We identified inconsistencies between...the Group's accounting records...and independently obtained information" from customers and suppliers."documents contained in the Group's accounting records relating to some of the Group's bank transactions may not be authentic or otherwise reliable."
Company announcement, 31-Mar-2011
"We identified inconsistencies between...the Group's accounting records...and independently obtained information" from customers and suppliers."documents contained in the Group's accounting records relating to some of the Group's bank transactions may not be authentic or otherwise reliable."
KPMG quits as auditor of Artini China (0789) after qualifying its audit opinion
Company announcement, 24-Aug-2010
In fact, p42 of the annual report filed on 1-Aug says that KPMG will not see re-appointment at the AGM. The implication in this announcement is that KPMG told the company it would quit in a letter dated 17-Aug, and it took another week to announce the reasons.
Company announcement, 24-Aug-2010
In fact, p42 of the annual report filed on 1-Aug says that KPMG will not see re-appointment at the AGM. The implication in this announcement is that KPMG told the company it would quit in a letter dated 17-Aug, and it took another week to announce the reasons.
KPMG quits as Hontex auditor, cites cash gifts offered to audit staff
Company announcement, 13-May-2010
Company announcement, 13-May-2010
Court continues interim injunction to freeze Hontex assets
SFC, 8-Apr-2010
"The SFC alleges that Hontex's financial position as outlined in its IPO prospectus has been materially overstated."
SFC, 8-Apr-2010
"The SFC alleges that Hontex's financial position as outlined in its IPO prospectus has been materially overstated."
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