Composition of committees for 2004 - Hong Kong Institute...

Society News

THE HONG KONG ACCOUNTANT APRIL 200410

Composition of committees for 2004The Council recently appointed members to its committees for 2004. At present, there are five statutory committees and 47 non-statutory committees and working groups under the Council:

STATUTORY COMMITTEESDisciplinary PanelNicholas Charles AllenGabriel Ricardo Dias AzedoAntonio J Barreira*Mark Bradley*Paul Jeremy BroughIain Ferguson BruceMarshall Byres*Anthony Chan*Chan Ho Yin, GrahamClement ChanChan Sai HoiTS Chan*Charles WD ChanWilson Chan*Chau Shing Yim, DavidDavid ChengMarvin KT CheungCheung Yuk TakAnderson Chow*Anthony WK Chow*Paul Chow*Con Conway*Bruce William DunlopAnthony Joseph EspinaJames Taylor FultonRobert Andrew GazziPeter Griffiths*Dudley L HardingJonathan Harris*Ho Ka Kui, BonifaceRichard Ho*Ho Sik LanEdwin Ing*Carlyon Knight-EvansAngelina KwanLau Chi Pong, HowardQuinn YK LawLee Hoi Yin, StephenLeung Chun Ming*Leung Hok LimLeung Tai Chiu, AntonyLo Kai Ming, CharlesTim TL LuiMa Ching Nam*Abdul Majid*Selwyn MarVernon MooreDaniel ShumPaul Shieh*Erik Shum*

Tan Chuen Yan, PaulCY TangTsang Yiu Keung, PaulHerbert HK Tsoi*Bernard WilkinsonWong Hak Kun, KanPeter HY WongHorace Wong*Wong Kwai Huen*Wong Kwok Wai, AlbertPatrick LT WongWu Ting Yuk, AnthonyAlbert Xavier*Patrick KC YeungYu Hon To, DavidRimsky Yuen*

Examinations BoardDoug Oxley (Chairman)Wilson Fung (Deputy Chairman)Kennedy Tat-yin Liu (Deputy Chairman)Mimosa KL ChanEdward KC ChiuCho Lung Pui Lan, StellaDennis CO ChungRichard KW HoLarry LK KwokPaul NealeNg Kwok Hung, EdmondSimon CW TsangTse Yue KeungStephen WeatherseedCatherine KS YenPatrick KC YeungDavid SO Yip

Investigation PanelAlbert SC AuTom ChanChan Kin Man, EddieChan Koon HungChan Lok SangCheng Kin ChungChin Ying On, CharlesCharles ChowKenneth ChungCalum Muir DavidsonNicholas P EtchesPhilip FungRichard KW HoIp Chiu Yin, EddiePM Kam

RJ KenrickNick KittoRoger KnightJohnson KongBenny KB KwokLarry LK KwokJoseph M LaiLam Hon MingLau Siu Ki, KevinJohn Robert LeesJonathan Russell LeongLeung Chi Ying, KathyAlbert LiJoseph LoML ManNelson MiuAlan MorganKG MorrisonNg Chi Keung, VictorPang Yuk Leung, AllenNigel ReidAlan TangDebra WongWong Sau Ling, ShirleyDennis WongThomas YT WongRaymond YungJohn Zabriskie

Practice Review CommitteeKG Morrison (Chairman)Albert SC Au (Deputy Chairman)Lam Hon Ming (Deputy Chairman)Francis ChanCharles ChowChua Suk Lin, IvyPhilip FungElizabeth LawLouis KN LeungPauline LeungMichael TL PangRobin RadcliffeTan Chuen Yan, PaulTsai Wing Chung, PhilipDavid TsoiDennis Wong

Registration and PractisingCommitteeMark C Fong (Chairman)Doug Oxley (Deputy Chairman)Paul F Winkelmann (Deputy Chairman)

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Edward KF ChowWilson FungPaul NealeDavid TsoiJudy TsuiPatrick LT Wong

NON-STATUTORYCOMMITTEESAccountancy Accreditation BoardDoug Oxley (Chairman)Michael KH Chan (Deputy Chairman)Richard KP Tse (Deputy Chairman)Gary C BiddleChan Koon HungChang Tso Tung, StephenEdward KC ChiuFionna PY KongPaul NealeJudy TsuiPatrick LT WongWS Wong*

Administration, Finance &Remuneration CommitteeWilson Fung (Chairman)Michael KH Chan (Deputy Chairman)Chew Fook Aun (Deputy Chairman)John ChiuSY ChoiEdward KF ChowJim Tak Hing, NicholasNick KittoYvonne LawSamuel LeeDoug Oxley

Audit CommitteeNicholas P Etches (Chairman)PM Kam (Deputy Chairman)Aloysius HY Tse (Deputy Chairman)Sir Gordon M MacwhinnieJoseph M LaiTim TL Lui

Auditing and Assurance StandardsCommitteeCarlson Tong (Chairman)Charles Chow (Deputy Chairman)Richard George (Deputy Chairman)Deborah AnnellsAndrew BennettChan Ka Pui, ArthurPatrick ChengWilliam CroweCharles GrieveLucia Li

ML ManPhyllis MoPaul F WinkelmannThomas YT WongYeung Kit Kam, LesleyDesmond Yuen

Community Services CommitteeKennedy Tai-yin Liu (Chairman)Albert SC Au (Deputy Chairman)Michael KH Chan (Deputy Chairman)Susanna CM ChingChow CI DennisFung Chi Sum, GodwinHo Tze TuHo Yiu Ming, BillyKong Tze WingLiu Mei Ling, RhodaAyesha Abbas MacphersonKenneth KW PoonAndrew KK WuYoung SH Ann

Complaints PanelJohn C Chan (Convenor)Simon Richard BladeChan Kin Man, EddieChan Shui Shing, OwenChan Wei Ting, BarbaraChang Tso Tung, StephenCheng Kin ChungChin Ying On, CharlesAndy ChoiCharles ChowKenneth ChungRex Alexander ClementsonSimon Charles CopleyCalum Muir DavidsonRaphael DingPatrick Richard FitzgeraldFung Chi Wai, CharlesRichard GeorgeAlun Clark GrassickPaul Donald HebditchPhilip HilliardRichard KW HoIp Chiu Yin, EddieIp Koon Wing, ErnestGrant Andrew JamiesonAlan Newman JohnsonRoger KnightJohnson KongBenny KB KwokLam Hon MingKenneth YK LamJonathan Russell LeongLeung Chi Ying, Kathy

Alden KK LeungRuby LeungLeung Tak Wing, SimonKeith KS LieLiu Yiu Keung, Stephen*John Joseph LoughlinMuk Chung Wing, JackyNg Chi Keung, VictorPang Yuk Leung, AllenRobin RadcliffeColin ShaftesleyTai Hay YuenAlan TangTse Ping KwongJim WardellRichard David WinterDebra WongDennis WongCatherine KS Yen

Continuing ProfessionalDevelopment CommitteeDoug Oxley (Chairman)Mark C Fong (Deputy Chairman)Judy Tsui (Deputy Chairman)Paul CC ChanChan Ho Yin, GrahamSherman CheungPhilip HilliardLusan HungElizabeth LawLeo LeeGerald RedmondTsai Wing Chung, PhilipMichael TsuiStephen WeatherseedPatrick LT WongThomas WS Wong

Corporate CommunicationsStrategy Steering CommitteeJudy Tsui (Chairman)Edward KF Chow (Deputy Chairman)Paul F Winkelmann (Deputy Chairman)Albert SC AuMichael KH ChanSusanna ChiuElizabeth LawLee Sau Wai, CeciliaDaniel LinKennedy Tat-yin LiuTim TL LuiAndrew WeirPatrick LT WongCatherine KS Yen

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Corporate Governance CommitteeEdward KF Chow (Chairman)Judy Tsui (Deputy Chairman)Jim Wardell (Deputy Chairman)Michael KH ChanDavid ChengRichard GeorgeGordon WE Jones*Quinn YK LawLee Hoi Yin, StephenLi Yin Fan, FannyKG MorrisonPeter NixonNigel ReidJames SiuRichard SunTommy TamNancy Tse

Corporate Services CommitteeAlbert SC Au (Chairman)Susanna Chiu (Deputy Chairman)Kevin Yuen (Deputy Chairman)Fung Chi Sum, GodwinWilson FungWilson CS KwokLam Ching KaLawrence WC LauGabriel Tam*Joe PS Tsang

Editorial BoardTim TL Lui (Chairman)Albert SC Au (Deputy Chairman)Edward KF Chow (Deputy Chairman)Cheng Kin ChungCho Lung Pui Lan, StellaCon Conway*Philip FallonLusan HungBenny KB KwokPaul NealeWong Ching Hung, ThomasPatrick LT WongWu Shek Chun, WilfredYeung Kit Shing, JacksonDavid SO Yip

Ethics CommitteeMark C Fong (Chairman)Edward KF Chow (Deputy Chairman)Roger Knight (Deputy Chairman)Denis Brock*Chan Wei Ting, BarbaraWilson Chan*Chew Fook AunCon Conway*

Charles GrieveQuinn YK LawLucia LiRita Liaw*Doug OxleySheila PattleDavid Tak-kei SunTan Chuen Yan, PaulChristopher To*Richard David WinterPatrick LT Wong

Expert Panel on BankingSimon CW Tsang (Convenor)Lam Hon Ming (Deputy Convenor)Babak NikzadMaria Xuereb

Expert Panel on InsurancePhilip Hilliard (Convenor)Ken McKelvie (Deputy Convenor)Lloyd Bryce-BorthwickMax ChenCF Choy*Alan Michael MasonJimmy PunStephen RoderST Yuen

Expert Panel on Legal MattersCarlson Tong (Convenor)Peter Griffiths* (Deputy Convenor)Kenneth Raymond DeaytonPhilip FungBenny KB KwokShum Chun Yau, Clement*William YH TsangStephen Yam

Expert Panel on ListingCarlson Tong (Convenor)Edward KF Chow (Deputy Convenor)Kenneth YK Lam (Deputy Convenor)Phil KF ChanMichael FirthPhilip FungLarry LK KwokAlvin LeungJohn Maguire*Sim Kon Fah, MichaelDelores Eng-Hua TehHenry ToRichard David WinterStephanie WongPatrick KC Yeung

Expert Panel on SecuritiesColin Shaftesley (Convenor)Patrick KC Yeung (Deputy Convenor)Phil KF ChanRaymond ChengPaul ChengWade Deffenbaugh*Carlyon Knight-EvansAlex KwokLiu Yun Bonn

Financial Accounting StandardsCommitteePaul F Winkelmann (Chairman)Wilson Fung (Deputy Chairman)Nigel Reid (Deputy Chairman)Rebecca CC ChanChan Lok SangEdward KF ChowCF Choy*Raphael DingTommy FungRobert GibsonPhilip HilliardAndrew Huke*Susanna LauQuinn YK LawCatherine Susanna MorleyTommy TamStephen TaylorTom Wu

Image and BrandingCommitteeAlbert SC Au (Chairman)Michael KH Chan (Chairman)Philip FungPM KamNick KittoRebecca Lam*Elizabeth LawVivian SunCynara Tan*Wong Chun Bong, AlexPatrick LT Wong

Insolvency Education SteeringCommitteeDoug Oxley (Chairman)John Robert Lees (Deputy Chairman)Alan Tang (Deputy Chairman)Chau Yin Fong, CindyRainier LamMuk Chung Wing, JackyKenny TamKitty Tsui*Patrick LT WongDavid SO Yip

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15APRIL 2004 THE HONG KONG ACCOUNTANT

Insolvency PractitionersCommitteeAlan Tang (Chairman)Johnson Kong (Deputy Chairman)David Tak-kei Sun (Deputy Chairman)Jan BlaauwChua Suk Lin, IvyDarach HaugheyNick HillDavid Kidd*John Robert LeesAllan Leung*Ruby LeungLiu Yiu Keung, Stephen*Mak Fung YinRupert PurserGabriel TamKenny TamJim Wardell

IT Strategy SteeringCommitteeMichael KH Chan (Chairman)Susanna Chiu (Deputy Chairman)Adrian Yeung (Deputy Chairman)Tony Yuk Tung ChanCheung Kin Wing, EdwinLeung Wai Fung, Joseph*Kenneth KW PoonFrederick WK Wong

IT Training DevelopmentCommitteeVincent Chan (Chairman)Victor Tan (Deputy Chairman)Beverly LaiGerry LiKenneth KW PoonChester Soong*Patrick LT Wong

Mainland Affairs CommitteePatrick Cheng (Chairman)Paul MP Chan (Deputy Chairman)Edward KF Chow (Deputy Chairman)Paul CC ChanChan Koon HungCho Lung Pui Lan, StellaMark C FongHeng Kwoo SengJohnson KongAmy Lau*Alfred ShumWilliam YH TsangPeter WanAlan Wong Chiu MingStephen Yiu

Young Chun Man, KennethDesmond Yuen

Market Monitoring CommitteeSusanna Chiu (Chairman)Daniel Lin (Deputy Chairman)Michael KH ChanBenny KB KwokVictor Tan

Member Innovation & TechnologySteering BoardPaul MP Chan (Chairman)Michael KH Chan (Deputy Chairman)Con Conway* (Deputy Chairman)Albert SC AuJohn Barnes*Vincent ChanSusanna ChiuEdward KF ChowWilson FungWilliam GeeLusan HungGregory LoVictor TanStephen Weatherseed

Professional Accountants inBusiness CommitteeEdward KF Chow (Chairman)Chew Fook Aun (Deputy Chairman)Wilson Fung (Deputy Chairman)Michael KH ChanPatrick KW ChanRonald TH ChanPaul ChengSY ChoiPeter ChoyIo Cheok Kei, RubyQuinn YK LawGuy LookJames SiuTommy TamRichard David WinterAlan Wong Chiu Ming

Professional Risk ManagementCommitteeKen McKelvie (Chairman)Elizabeth Law (Deputy Chairman)Paul F Winkelmann (Deputy Chairman)Francis ChingML ManNg Shiu HongNigel ReidDavid Smyth*Kenny Tam

William YH TsangJennifer Yuet Fong Yip Li

Professional StandardsMonitoring CommitteeCarlson Tong (Chairman)Estella Ng (Deputy Chairman)Thomas YT Wong (Deputy Chairman)Rebecca CC ChanOlivia CheungCharles ChowRaphael DingPaul Donald HebditchJonathan Russell LeongStephen TaylorTse Ping KwongDebra Wong

Qualification ProgrammeDevelopment and PromotionCommitteePatrick Cheng (Chairman)Elizabeth Law (Deputy Chairman)Vivian Sun (Deputy Chairman)Au Chi Pang, Ivan*Michael KH ChanChan Wai Man, EdmundCho Lung Pui Lan, StellaStephen Fung*Lam Chi Yuen, NelsonLow Chee Keong*Simon CW TsangEdward Tsui*

Research and Survey CommitteeCarlson Tong (Chairman)Susanna Chiu (Deputy Chairman)Cho Lung Pui Lan, Stella (Deputy Chairman)Edward KF ChowWilson FungFionna PY KongLui Ping Keung*Andrew CC MaCY Tang

Small and Medium PractitionersCommitteePaul MP Chan (Chairman)Mark C Fong (Deputy Chairman)Patrick LT Wong (Deputy Chairman)Au Chau Ki, WilkieAlbert SC AuChan Ho Yin, GrahamChan Lok SangBilly WN ChanPhilip FungFung Yee, Pammy

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Lusan HungDaniel KL LeeKenny TamWong Chun Bong, AlexThomas WS WongThomas YT WongLouie MW WuYung Wing Sheung, Amy

Standard-setting Steering BoardPM Kam (Chairman)Roger Best (Deputy Chairman)David Tak-Kei Sun (Deputy Chairman)Albert SC AuMark C FongHerbert Hui*Lucia LiJohnny CD MaoVernon MooreCarlson TongSimon Topping*Judy TsuiRichard Williams*Paul F WinkelmannPatrick LT Wong

Student Training and DevelopmentCommitteeJudy Tsui (Chairman)Amy YF Chow (Deputy Chairman)YB Tse (Deputy Chairman)Michael KH ChanKung Hing See, RuthWilson CS KwokLam Chi Yuen, NelsonLam Ching KaPeter TY LauLee Hoi Ning, Joanne*Eva YW LeeLillian PL LiangLo Ting Kwun, Chris*Richard S SimmonsWong Ching Hung, ThomasJoseph SW YauDavid SO Yip

Taxation CommitteePaul MP Chan (Chairman)Yvonne Law (Deputy Chairman)David Southwood (Deputy Chairman)Deborah AnnellsChan Koon HungChan Yuen Fan, FlorenceDaniel CheungDavid ChoCharles ChowKwan Kar Chun, Steven

Elizabeth LawLeung Wo PingTim TL LuiAyesha Abbas MacphersonTai Hay Yuen

Trust Services CommitteeJohn Barnes* (Chairman)Stephen Weatherseed (Deputy Chairman)Dominic ChanMichael KH ChanVincent ChanAnthony KamElizabeth LawGregory LoWong King Sum, Kenneth

WORKING GROUPSAccountants’ Report Task ForceKennedy Tat-yin Liu (Chairman)Richard George (Deputy Chairman)Raymond ChengPaul ChengCharles ChowEdward KF ChowPaul Donald HebditchAlan MorganSim Kon Fah, MichaelPaul F Winkelmann

CA Source Task ForceCon Conway* (Chairman)Cheung Kin Wing, Edwin (Deputy Chairman)Frieda Chan*Michael KH ChanLau Ping*

Disciplinary Proceedings ReviewTask ForceSelwyn Mar (Chairman)Raphael Ding (Deputy Chairman)Elizabeth Law (Deputy Chairman)TS Chan*Anthony WK Chow*Patrick KC Yeung

GAAP for Small BusinessesWorking GroupPaul MP Chan (Chairman)Raphael Ding (Deputy Chairman)PM Kam (Deputy Chairman)Clement ChanBilly WN ChanRaymond ChengTommy FungPhilip FungLee Chi Man, Gordon

Albert LiTai Hay YuenBernard Wilkinson

International Recognition TaskForceRoger Best (Chairman)Edward KF Chow (Deputy Chairman)David Tak-kei Sun (Deputy Chairman)PM KamLi Ka-cheung, EricDoug OxleyJudy TsuiPaul F Winkelmann

Joint Government/HKSACompanies Ordinance ReviewWorking GroupRoger Best (Chairman)Gordon WE Jones* (Deputy Chairman)Wilson FungPeter Griffiths*Elizabeth LawAlbert LiSimon Riley*Bernard WilkinsonPaul F Winkelmann

Language Proficiency WorkingGroupGordon WE Jones* (Chairman)TS Chan* (Deputy Chairman)Wilson CS Kwok (Deputy Chairman)Chan Suet Ying, MariaLesley YC WongLee Sau Wai, CeciliaAbdul Majid*Margaret CC Poon*Simon CW TsangPeter HY WongJennifer Yuet Fong Yip Li

Practice Management Tool Kitfor SMP Task ForceLusan Hung (Chairman)Albert SC Au (Deputy Chairman)Dominic ChanChua Suk Lin, IvyKo Tak Fai, DesmondThomas YT Wong

Regulatory Framework ReviewTask ForceWong Tak Wai, Alvin (Chairman)PM Kam (Deputy Chairman)David Tak-Kei Sun (Deputy Chairman)Roger Best

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Paul MP ChanEdward KF ChowRaphael DingSelwyn MarCarlson Tong

Self-regulation & Re-brandingLegislative Amendment TaskForceDavid Tak-Kei Sun (Convenor)Roger Best (Deputy Convenor)

Paul MP Chan (Deputy Convenor)Michael KH ChanEdward KF ChowMark C FongCarlson TongWong Tak Wai, Alvin

Task Force on Offering theQualification Programme in theMainlandPatrick Cheng (Convenor)

Judy Tsui (Deputy Convenor)Johnson KongKennedy Tat-yin LiuDoug OxleyWong Ching Hung, ThomasPatrick LT WongPatrick KC Yeung

* Non-HKSA member

Disciplinary findingsThe Society received a complaint letter con-cerning the conduct of Mr Tang Tsz Kin,Terence whilst acting as the liquidator of acompany (‘Company’) under members’voluntary liquidation. After considering theinformation provided by the complainantand Mr Tang, the Society lodged a com-plaint against Mr Tang under Section 34(1A) of the Professional Accountants Or-dinance for his failure to:(a) adequately consider the solvency posi-

tion of the Company and a related com-pany of the Company, and to considerthe viability of the members’ voluntarywinding up of the Company prior to hisacceptance of the appointment as theCompany’s liquidator;

(b) protect the assets of the Companywhen acting as its liquidator; and/oralternatively, and

(c) comply with section 237A of the Com-panies Ordinance.

Upon hearing the complaint, the Disciplin-ary Committee found that:(a) Mr Tang had failed to adequately con-

sider the financial position of the Com-pany and the related company.

(b) If Mr Tang had considered thoroughlythe financial status of the Company andthe related company, he would haverealised (much earlier than he actuallyhad) that the Company could not main-tain its solvency for 12 months from thecommencement of its winding up.

(c) Mr Tang maintained a much too closerelationship with a minority share-holder of the Company. No justificationwas put forward by Mr Tang to explainwhy he declined the request of a majorshareholder of the Company, who held99.99% of the shares of the Company,to collect the mesne profit and rectify

the renewal of the tenancy relating tothe Company’s property. Mr Tang didnot pay heed to the rent and the re-newal of the tenancy of the propertywhich would bring considerable rentalincome to the Company.

(d) Mr Tang was given opportunities by theDisciplinary Committee, but failed toproduce the financial statements of theCompany required under section 237Aof the Companies Ordinance.

The Disciplinary Committee was satisfiedby the evidence adduced before it that thecomplaint was proved. The DisciplinaryCommittee found that Mr Tang had beennegligent in the conduct of his professionand failed or neglected to observe, main-tain or otherwise apply the following eth-ics standards:(a) Professional Ethics Statement 1.200

‘Explanatory Foreword - FundamentalPrinciples’; and

(b) Professional Ethics Statement 1.203(Supplement) ‘Integrity, Objectivityand Independence in Insolvency’

Having taken into account the evidenceand circumstances of the case, the Disci-plinary Committee ordered that:(a) Mr Tang be reprimanded;(b) Mr Tang be fined a sum of HK$10,000;

and(c) the costs and expenses of and inciden-

tal to the disciplinary hearings be borneand paid by Mr Tang.

A Disciplinary Committee constituted un-der section 33(3) of the Professional Ac-countants Ordinance (the Ordinance)heard a complaint made by the Director ofProfessional Compliance of the Society forthe Practice Review Committee (theComplainant) against Mr Ma Kin Kai, John

(Mr Ma), a professional accountant, on 16December 2003.

Mr Ma is the sole proprietor of John K.K. Ma & Co. After considering the auditdeficiencies identified during the secondpractice review of Mr Ma’s audit practice,the Practice Review Committee concludedthat Mr Ma failed or neglected to observe,maintain or otherwise apply appropriateprofessional standards in a number of au-dit engagements. The Practice Review Com-mittee therefore lodged a complaintagainst Mr Ma under section 34(1)(a)(vi)of the Professional Accountants Ordinance(the Complaint Letter).

The Complaint Letter drew attentionto findings of significant audit deficienciesidentified during the second practicereview. The relevant findings were num-bered A, B, C1, C2, C3, D, E, F and G in theComplaint Letter.

The Complainant’s case in respect ofeach complaint was as follows:1. Complaint A - Mr Ma’s failure to inves-

tigate that liabilities had been properlyaccounted for in his audit of the finan-cial statements of a company.

2. Complaint B - Mr Ma’s failure to assessthe recoverability of debtors in his au-dit of a company.

3. Complaints C1, C2, C3 - Mr Ma’s fail-ure to plan and attend client stock-takes , h i s re l iance on c l ient ’srepresentations on the existence ofstocks and inadequate audit documen-tation on:(a) substantiating cost of stock to sup-

pliers’ invoices;(b) tests of net realisable value;(c) tests on the first-in-first-out method

of costing; and(d) the nature and extent of audit tests.

4. Complaint D - Mr Ma’s failure to checkthe ownership and carry value of interests

Society News


in associated companies and compliancewith SSAP 10 on accounting for associatedcompanies, or failure to qualify theaudit report on the departure fromSSAP 10.

5. Complaint E - Mr Ma’s failure to prop-erly test and report on compliance withthe requirements of the Solicitors Ac-counts Rules concerning the need fora solicitor to maintain separate trust ac-counts for client monies.

6. Complaint F - Mr Ma’s failure to prop-erly test or document work done in re-spect of his audit of a securities dealerconcerning compliance with sections 83and 84 of the Securities Ordinance,which deal with the need for a securi-ties dealer to keep and properly accountfor client monies and securities held bythe dealer on behalf of its clients.

7. Complaint G - Mr Ma’s failure to keepup-to-date with auditing standards byissuing a ‘subject to’ audit report.

Upon hearing the complaints, the Disci-plinary Committee was satisfied by the evi-dence adduced before it that all complaintsset out in the Complaint Letter were provedand that Mr Ma failed or neglected toobserve, maintain or otherwise apply ap-propriate professional standards in breachof section 34(1)(a)(vi) of the Ordinancein that in his audits:(i) Mr Ma (in relation to complaints A, B,

C1, C2, C3, D, E and F) failed or ne-glected to perform adequate work toobtain sufficient appropriate audit evi-dence to enable him to draw reason-able conclusions on which to base hisaudit opinion, thereby failing or ne-glecting to maintain, observe or other-wise apply paragraph 2 of the Statementof Auditing Standards 400 ‘AuditEvidence’;

(ii) Mr Ma (in relation to complaints A, B,C1, C2, C3, D, E and F) failed or ne-glected to adequately document hiswork, thereby failing or neglecting tomaintain, observe or otherwise applyparagraph 2 of the Statement of Audit-ing Standards 230 ‘Documentation’;and

(iii)Mr Ma (in relation to complaint G)failed to keep up-to-date with auditingstandards by issuing a ‘subject to’ auditreport, thereby failing or neglecting tomaintain, observe or otherwise applyStatement of Auditing Standards 600‘Auditors’ Reports on FinancialStatements’.

Having taken into account the evidenceand circumstances of the case, the Disci-plinary Committee ordered that:1. Mr Ma’s name be removed from the

Register of Professional Accountantsfor a period of one year with effect from31 January 2004, and

2. the costs and expenses of and inciden-tal to the disciplinary hearing incurredby the complainant and the Society beborne by Mr Ma.

The Council ordered that the findings ofthe Disciplinary Committee be publishedin the Society’s journal referring to Mr Maby name.

On 18 December 2003, a Disciplinary Com-mittee of the Society heard and foundproved, on admission, a complaint raisedby the Registrar against a professionalaccountant, Mrs Sin Law Yuk Lin, Agnes.Mrs Sin had been convicted in Hong Kongof an offence involving dishonesty, and thecomplaint was raised on the basis that sec-tion 34(1)(a)(ii) of the Professional Ac-countants Ordinance applied to her. TheDisciplinary Committee ordered that MrsSin be removed from the Register of Pro-fessional Accountants for two years from 18December 2003. The committee also or-dered Mrs Sin to pay the costs of and inci-dental to the disciplinary proceedingsincurred by complainant and the Society.

Mrs Sin, formerly a civil servant, was pros-ecuted in 2000 for making a false statementwith intent to deceive her employer, theGovernment, when she applied for PrivateTenancy Allowance in 1983. In thatapplication, Mrs Sin falsely stated that theleased property was not owned by her, her

spouse or their families, and none of theseparties had a financial interest in theproperty. In fact, Mrs Sin did have a financialinterest in the leased property through anarrangement involving herself, her spouse,certain other persons and the use of bodiescorporate that held the leased property andanother property. Mrs Sin was charged withthe offence of ‘agent using document withintent to deceive her principal’, contrary tosections 9(3) and 12(1) of the Prevention ofBribery Ordinance.

The District Court found Mrs Sin guiltyof the charge and imposed a sentence ofimprisonment for nine months suspendedfor two years. Mrs Sin appealed the judg-ment to the higher courts but the Court ofFinal Appeal eventually dismissed the ap-peal in July 2002.

In the light of the conviction of Mrs Sin,the Registrar raised a complaint against herunder section 34(1A) of the ProfessionalAccountants Ordinance. At the disciplin-ary hearing, counsel for Mrs Sin admittedto the complaint on her behalf. In makingthe order mentioned in the first paragraphabove, the Disciplinary Committee took ac-count of the following mitigating factors:• the substantial delay (through no fault

of Mrs Sin) in her being prosecuted forthe offence,

• Mrs Sin’s clear criminal record and dis-tinguished record of public service,

• the mitigating factors that the court hadtaken in account when it imposed thecustodial sentence on Mrs Sin, whichincluded her clear record, positivegood character and loss of position,

• the time that had elapsed from the con-viction to the present disciplinaryproceedings, and

• the fact that Mrs Sin’s age puts her nearher retirement.

President’s engagementsOn behalf of the Society, president Roger Best participated in the following eventsduring February and March:

• the Director of Home Affairs’ lunch meeting with representatives from profes-sional bodies on 12 February

• the Society of Chinese Accountants & Auditors’ spring dinner on 25 February

• the Hong Kong Institution of Engineers’ annual dinner on 9 March

• the Hong Kong International Arbitration Centre’s cocktail reception on 15March.

Society News


This year’s Education and Career Expo2004 was held from 19 to 22 February atHall 5 of the Hong Kong Convention & Ex-hibition Centre. Jointly organised by theHong Kong Trade Development Counciland the Labour Department, this annualexhibition attracted participation from 375local and overseas educational institutions,commercial organisation, government de-partments and professional bodies.

The Society together with the HongKong Association of Accounting Techni-cians occupied three exhibition booths. Itwas a great opportunity for the Society todisseminate information on the Qualifica-tion Programme (QP) to school leavers,tertiary students and the working popula-tion who are interested in pursuing an ac-countancy career.

The Society’s booth was one of 15 se-lected exhibitors visited by the officiatingguests and other VIP guests in a VIP touron 19 February. Ms Georgina Chan, direc-tor of Education & Training, introducedour booth to them. The tour was led by Dr

Education and Career Expo 2004Philemon Choi Yuen Wan, SBS, JP, chair-man of Commission on Youth, Mr MichaelSze, executive director of the Hong KongTrade Development Council and Mr Mat-thew Cheung, JP, Permanent Secretary forEconomic Development and Labour.

The Society’s booth attracted nearly3,320 visitors during the four-day fair. TheSociety’s Education and Training (E&T)Department placed a few staff in its boothto answer public enquiries. Staff receivedand handled over 600 enquiries rangingfrom specific questions regarding the QP,membership requirement to general ques-tions on accountancy as a career and itsfuture prospects. This year, for the firsttime, 42 student helpers were recruitedfrom the Society’s Prospective StudentSociety (PSS) to assist in the booth. Thesestudent helpers were selected from over 160volunteer PSS students who had respondedto our recruitment of student helpers forthe Expo. They were energetic, enthusias-tic and readily approachable to offer anyassistance to visitors.

Career Seminar conducted by Ms GraceLeung, assistant director of Education andTraining and Mr Nelson Lam, QP MasterWorkshop Facilitator.

As part of the Expo programme, theSociety held two career seminars entitled‘A Direct Route to Become a ProfessionalAccountant’ and ‘QP: A Head Start to a Suc-cessful Accountancy Career’. The two semi-nars attracted over 220 participants. Theywere mainly tertiar y and secondar ystudents, parents and other members of thepublic. Many of them showed a keen inter-est in choosing accountancy as their career.

The Education and Career Expo was agreat success with the full support fromcommittee members and PSS studentrepresentatives.

HKSA booth was selected to be visited by VIPguests on the day of the Opening.

HKSA/HKAAT staff at the Society’s booth. Participants playing the game inside theSociety’s booth.

Mr Simon Tsang, member of QualificationProgramme Development and PromotionCommittee, visits the Society’s booth.

Ms Elizabeth Law, deputy chairman ofQualification Programme Development andPromotion Committee, helps answer enquiries.

Society News


Cocktail reception for new members

A happy get together.

Some 30 members joined the Society’sCocktail Reception for New Members heldon 8 March 2004 at the HKSA Meeting andTraining Centre.

During the event, new members weregreeted by Council members and seniorsecretariat staff. Mr Roger Best, thepresident, addressed the participants on

the Society’s vision in the year and somelatest issues relating to the accountancyprofession. Winnie Cheung, chief executive& registrar, also gave a presentation on theSociety’s structure and its services.

The occasion provided an excellentopportunity for networking.

Public serviceappointmentsThe Society’s past presidents Peter HY Wong,GBS, JP (�� ) and Marvin KT Cheung,SBS, JP (�� ) have been appointed asmembers of the Greater Pearl River DeltaBusiness Council for two years with effectfrom 1 March 2004.

The Society’s past president Peter HY Wong,GBS, JP (�� ) has been appointed as amember of the Audit Committee of The Chi-nese University of Hong Kong for three yearswith effect from 25 February 2004.

The Society’s past president T BrianStevenson, SBS (�� ) has been appointedas a member of the Public Service Commis-sion for two years with effect from 1 Febru-ary 2004.

The Society’s past president PM Kam (��

�) has been appointed as a member of theLicensing Appeals Board for two years witheffect from 1 January 2004.

Marina Wong Yu-pok (�� ) has been re-appointed as a Council member of the CityUniversity of Hong Kong for two years witheffect from 1 January 2004.

Andy Ngan Yu-loong (�� ) has been ap-pointed as a member of the Marine FishScholarship Fund Advisory Committee fortwo years with effect from 1 April 2004.

Tim Lui, HKSA past president andTaxation Committee member (right)greeting Robert McLeod, chairman ofthe New Zealand Business Roundtable.

Visitor from NewZealand BusinessRoundtableOn 2 March 2004, the Society receiveda visitor, Robert McLeod, chairman ofthe New Zealand Business Roundtable,through the arrangement of the HongKong Government. The New ZealandBusiness Roundtable is an organisationof CEOs of medium to largecorporations. It formulates andpromotes views of the business sectorand plays an active role in advocacywith the government and the commu-nity at large in New Zealand.

On behalf of the Society to receivethe visitor was Tim Lui, past presidentand member of the Taxat ionCommittee. Mr Lui briefed Mr McLeod on various fiscal and taxationissues of Hong Kong as well as the Society’s proposals on the GovernmentBudget.

Statistics updateAs of 15 March 2004, the Society’s statistics were as follows:

22,026 Members

3,268 Practising Certificate Holders

1,092 Firms

142 Corporate Practices

Roger Best, the president (right) chatting witha new member.

Society News


President completes TrailwalkerCongratulations to HKSA president Roger Best. During his tenureas vice president of the Society, he joined his team members fromDeloitte Touche Tohmatsu and successfully completed theTrailwalker organised by Oxfam in November last year to raisefunds for its poverty alleviation work.

As an active and staunch supporter of this annual charityevent, Mr Best’s team took 20 hours and 56 minutes to finish the100km MacLehose Trail and was ranked 42nd out of 560 teams aswell as the first place among the accountancy industry category.

Over 3,000 participants completed the walk last year, whichstretched the full course of the MacLehose Trail, some 20 hillsand mountains, including Tai Mo Shan (at 957m, the highestpoint in Hong Kong).

Roger Best (centre) and his team members receiving the certificates aftercompleting the Trailwalker 2003.

Walk Up Jardine HouseOn 14 March, the Society participated in the ‘Walk Up JardineHouse 2004’ activity to help raise funds for the ‘Health in Mind’project – a youth mental health programme run by the JardineAmbassadors’ education group in partnership with the HospitalAuthority.

Five members from the Society’s Sports Interests Group, PearlChau, Newton Cheung, Dennis Ko, Marco Kung and Yale Leung,were recruited to form the HKSA team, which took 4 minutesand 29 seconds in relay to finish over 900 steps and reach the topof the 49-storey Jardine House. This score was just four secondsbehind the 2nd runner up in the ‘Business Associates’ contest, inwhich 29 teams competed. This was the first time the Society tookpart in the ‘Walk Up Jardine House’.

The Society was delighted to participate in this fun and mean-ingful event, another example of the Society’s commitment tocharitable efforts and corporate responsibility towards thecommunity.

Organised by the Jardine Ambassadors Programme, the ‘WalkUp Jardine House 2004’ attracted over 400 participants.

The HKSA team together with Council member and secretariat staff.

event. Dr the Hon Sarah Liao, JP, Secre-tary for Environment, Transport andWorks, was the guest of honour of theceremony.

Jointly organised by the Environmen-tal Campaign Committee, ChineseGeneral Chamber of Commerce, HongKong General Chamber of Commerce andHong Kong Productivity Council with theSociety as one of the co-organisers, thisannual event inaugurated in 1999 hasaimed at honouring businesses in HongKong that have demonstrated a commit-ment to environmental management, andeducating organisations regarding thebenefits of environmental management.In addition, it also provides an opportunityfor various public and private organisations

The Societyco-organises Eco-Business AwardsOn behalf of the Society, vice-presidentEdward Chow attended the 2003 HongKong Eco-Business Awards PresentationCeremony on 16 February 2004 and re-ceived a certificate of appreciation forthe Society being a co-organiser of the

to benchmark their commitment to envi-ronmental protection.

Three categories of awards were de-signed for this year. They were the GreenOffice Award, Green Property Manage-ment Award (Private Housing) and BestEnvironmental Reporting Award. Winnersof these awards were also at the ceremonyto receive their trophies.

The Society has been an active andstaunch supporter of the event under thepurview of its Accountant AmbassadorsProgramme, which has a service group fo-cusing on environmental protectionactivities. The Society has also been liaisingclosely with the Environmental ProtectionDepartment and other related parties onsuch efforts.

Vice-president Edward Chow receives acertificate of appreciation on behalf of theSociety for co-organising the 2003 Eco-Business Awards.

Society News


Indoor rowingThe Society’s teams won the 2000-metre team relay races at the Hong KongIndoor Rowing Open 2004 organised by the Hong Kong, China Rowing Asso-ciation on 29 February 2004 at Kowloon Park Sports Centre. Our two ladies’teams won the Championship and 1st runner-up award of the Women’s Pro-fessional Cup while one of our men’s teams won the Championship of theMen’s Professional Cup. Each team was formed by four members of theSociety’s Dragon Boat/Water Sports Interest Group (DB/WSIG).

The Society also took part in the Ronald McDonald House CharityRowathon for a 30-minute long distance relay by 10 team members duringthe event.

If you are interested in joining the DB/WSIG or other sports interestgroups of the Society, including basketball, bridge, football and golf, pleasecontact our Membership Section on tel.: 2287 7009 / 2287 7057 or look upthe Society’s website: www.hksa.org.hk/membership (under the Member Ser-vices section).

Corporate Practice Cessation Date

C & H Partners (CPA) Limited 30 November 2003�� !"#$%&'()*+

Firm

Albert Chow & Co. 8 January 2004�� !"#$%&

BDO Binder 1 January 2004�� !"#$%

C. M. Chai & Co. 8 January 2004�� !"#$%&

Carmen Ng & Company Certified 8 January 2004 Public Accountants�� !"#$%&

Cheer Link & Co. 8 January 2004�� !"#$%

Chiu, Chan & Co. 8 January 2004�� !"#$%

Removal of CPA PracticesThe Council recently approved the de-registration applications from the following corporate practice/firms and their nameshave been removed from the Society’s respective registers:

Firm Cessation Date

Fung & Lui 11 December 2003�� !"#$%

K. F. Chan & Co. 8 January 2004�� !"#$%&

P. Y. Chiu & Co. 8 January 2004�� !"#$%

RSM Salustro Nelson Wheeler 1 January 2004

S. F. Lau and Company 8 January 2004�� !"#$%&

T. W. Law & Co. 8 January 2004�� !"#$%&

Wilson W. C. Lee & Company 8 January 2004� �� !"#$

The ladies team showing its medals.

The teams.

Society News


Corporate Practice Name of Directors

Fortitude C.P.A. Limited Yue Shing Kwan�� !"#$%&'() Leung Sai Cheong

Wong Yiu Hung & Company CPA Limited Wong Man Pong�� !"#$%&'()* Wong Yiu Hung

Name of SoleFirm Proprietor/Partners

Anthony Ho & Company Ho Lap Wing, Anthony Certified Public Accountants�� !"#$%&

Brian Yang and Company, Yang Pao An, Brian Certified Public Accountants�� !"#$

New registrationsThe Council recently approved the registration of the following corporate practices/firms effective in February 2004:

Edmund Wong & Co. Wong Hoi Kuen, Edmund�� !"#$%&

Joseph Kwan and Company Kwan Man Ho, Joseph�� !"#$%&

P.S. Chung & Co Chung Ping Sum�� !"#$%&

Y.H. Lai & Co. Lai Yu Hang�� !"#$%&

Name of SoleFirm Proprietor/Partners

IFAC proposed new Standards onContinuing Professional Development

The International Federation of Accoun-tants issued an Exposure Draft (ED) on‘Continuing Professional Development(CPD): A Programme of Lifelong Learn-ing and Continuing Development of Pro-fessional Competence’ in October 2003. Acopy of this ED can be downloaded fromIFAC’s website www.ifac.org/eds. After dueconsideration, based upon the extant re-quirements of the HKSA contained in theSociety’s mandatory CPD scheme of Janu-ary 1999, the Society submitted a responseto IFAC. Details of the response are de-scribed in the following table.

Member of HKSA’s CPD Committee,Philip Tsai says of IFAC’s Proposed Interna-tional Education Standard for ProfessionalAccountants and the Society’s response; ‘Inessence, there is little that separates theHKSA and IFAC in this important area[education]. For example, where IFAC isinsisting [in its proposal] on a minimum of120 hours of CPD over a rolling three-yearperiod, the HKSA already requires 40 hoursper year. In terms of verifiable CPD (whichis very similar to our ‘structured CPD hour’),we are now broadly in agreement with IFACand are recommending that both practising

and non-practising members record 20hours per year of verifiable CPD.’

CPD Committee member PatrickWong further explains that under thepresent arrangements, the Society re-quires practising members to gain atleast 15 hours of structured CPD out ofthe total of 40 CPD hours. Non-practisingmembers, on the other hand, have notpreviously been required to gain struc-tured CPD hours. ‘This means that underthe new arrangement, practising memberswill only need to do an extra five hoursof structured or verifiable CPD hours,whereas, in the case of non-practisingmembers, they will see an increase fromzero to 20 hours of structured CPD,’ saysMr Wong.

‘I think we may see some initial resis-tance to this proposal from some of our non-practising members, but I would like toemphasise two things. Firstly, with the pass-ing of the Professional Accountants(Amendment) Bill 2004, all members willbe designated Certified Public Accountants.I can see no reason therefore, for a two-tierarrangement when it comes to CPD. Afterall we all need to ensure that we are up to

speed when it comes to new technical orother developments.

‘Secondly, it is important to note that itreally is not difficult to gain those important20 hours of structured CPD. The Societyholds many seminars on a wide range oftopics throughout the year. I myselfrecently attended a very good seminar(organised by HKSA) on business valuation,and earned myself 30 CPD hours in theprocess,’ he says.

Chairman of the Society’s CPDCommittee, Mr Doug Oxley, adds that‘Members of all IFAC bodies have to com-ply with the new CPD statement, whichmeans that all non-practising members can-not escape this new requirement. There wasa concern that as a result of this new CPDrequirement, non-practising members whodo not wish to comply with the require-ments may resign. However, unless theychoose not to remain as a professional ac-countant they will have to comply with thenew CPD requirement if they are a mem-ber of any IFAC body.’ He further explainsthat in terms of gaining structured CPDhours, members are not restricted to at-tending seminars organised or endorsed bythe Society. The test is that they should berelevant to the professional developmentof members while the amount of CPDhours claimed should be on an hour-to-hour basis.

Society News


The HKSA believes that it has a moreeffective system on the matter of the CPDcycle. Mr Tsai says that retaining the one-year cycle as opposed to the three-year cyclerecommended by IFAC, will make admin-istration of the scheme simpler and lessadministratively burdensome. Under theIFAC recommendation, the Society’s mem-bers would have to retain documentationrelating to CPD declarations for a periodof five years. If the Society retains a one-year cycle for CPD, it would be reasonableto retain documentation for no more thantwo years.

Mr Wong fully agrees with the Society’sposition on the one-year cycle. ‘The mostimportant reason for CPD is that onekeeps ahead of developments. Allowinga three-year cycle leaves the system open

to abuse. Just how up to date will a practi-tioner be if he leaves to the end of a three-year cycle to gain the requisite CPDhours?’

When it comes to CPD non-compliancethe Society follows IFAC’s previousstatement. Members who fail to meet CPDrequirements are given advice on appropri-ate CPD activities and an action plan forcompleting the shortfall within a reason-able period of time. However, in cases ofpersistent non-compliance, the case mayeventually be referred to Council and be-come subject to a disciplinary hearing. ‘Interms of treatment of CPD non-compliancecases, we are pretty much at one withIFAC,’ says Mr Tsai.

Mr Oxley feels this is an appropriatetime for members to be made aware of the

changing nature of the mandatory CPDscheme, even though, the changes beingdiscussed in this article are mild, and theIFAC proposals will not come into effect forsome time. ‘The important thing for mem-bers to note is that – going forward – theamount of CPD is going to increase andbecome more diverse,’ he says.

In the mean time, Mr Oxley points outthat as an IFAC’s member body, we have tocomply with its requirements. The IFACEducation Committee will probably arriveat a final statement in mid 2004 based onresponses received from its member bodies.From that point the HKSA estimates it willtake a further two years to implement thechanges.

Society’s Response to the International Federation of Accountants (IFAC)’s Exposure Draft on ContinuingProfessional Development (issued in October 2003)

No. Major Items

1. Minimum CPDRequirements &Differential CPDRequirements

2. Cycle

IFAC’s Proposed International Education Standard(issued in October 2003) (proposed Standard)

(1) Para 32 of the IFAC’s proposed Standard states that ‘asa minimum, an input based approach should require theprofessional accountant to:• Complete at least 120 learning units1 of professional

development activity in each rolling three yearperiod, of which 60 learning units should beverifiable;

• Complete at least 20 learning units in each year’(2) The minimum requirements be applicable to all

professional accountants.

A rolling three year period with 120 learning units, of which60 learning units should be verifiable2, is proposed inPara 32 of the IFAC’s proposed Standard.

Recommendations to IFAC

The Society is in general supportive of the proposalwith regard to the minimum requirements of 120learning units, of which 60 should be verifiable, overthree-year period. It is believed that this is the rightdirection in maintaining the standards of theaccounting professionals.

The Society agrees that all professional accountantsshould meet the same CPD requirements asstipulated. As all accounting professionals,irrespective of whether he/she is practising or non-practising, are accountable to their clients, employersand the public, they are expected to develop andmaintain on an equal level of knowledge, skills andcompetencies demanded by their professional rolesand users of their services.

The Society is aware that the proposed three-yearcycle will provide flexibility to members in complyingwith the CPD requirements. However, in terms ofmonitoring by member bodies, it is believed that aone-year cycle will be simpler and morestraightforward to administer. The experience of theSociety in adopting a one-year cycle over the pastyears, which is believed to be more stringent thanwhat is now proposed by IFAC, reinforces such belief.

To allow more flexibility, it is proposed that memberbodies should be allowed to adopt a one-year cycle ifthey so wish.

Note: 1 One learning unit is equivalent to one CPD hour2 Verifiable units refers to the learning activities for which evidence of participation can be provided. Evidence for verification includes course outlines, teaching

materials; attendance record, registration forms or confirmation of registration from provider; independent assessments that a learning activity has occurred;confirmation by an instructor, mentor or tutor of participation; confirmation by an employer of participation in an in-house program.

Society News


No. Major Items

3. ComplianceProcess

4. Responding toNon-Compliance

5. Retention ofDocumentation

6. Effective Date ofImplementation

FAC’s Proposed International Education Standard (issued inOctober 2003) (proposed Standard)

• Para 50 of the proposed Standard states ‘member bodiesshould establish a systematic process to monitor whetherprofessional accountants meet the CPD requirement andprovide for appropriate sanctions for failure to report andfailure to maintain competence’.

• Paras 51 and 52 state that:– A monitoring process could require a professional

accountant to:(a) submit a declaration as to whether they meet their

ethical obligation to maintain knowledge and skill toperform competency;

(b) submit a declaration as to compliance with anyspecific CPD requirements imposed by the memberbody;

(c) provide evidence of learning activities or verificationof competence developed or maintained.

– Other monitoring processing could involve:(a) auditing a sample of professional accountants to

check compliance with CPD requirements;(b) including the review and assessment of learning plans

or CPD documents in practice inspection programs;(c) requiring public practice employers to include CPD

programs and effective monitoring systems in theirquality assurance programs and track CPD activitiesas part of their time recording systems.

• Para 56 of the IFAC’s proposed Standard states that: ‘Asystem of mandatory CPD will operate effectively and in thepublic interest only if professional accountants who willfully failto comply with the requirement are brought into complianceon a timely basis or, if they persist in willful non-compliance,are appropriately sanctioned. Member bodies are encouragedto determine punitive sanctions after considering the legal andenvironmental conditions in their countries. Some memberbodies may have the legal authority to expel non-compliantprofessional accountants or deny the right to practice.Publication of the names of professional accountants whowillfully fail to comply is one option to be considered in thisprocess. This can act as a general deterrent for professionalaccountants and provides a clear signal to the public of theprofession’s commitment to maintaining competence.’

• In addition para 57 of IFAC’s proposed Standard also statesthat: ‘The initial steps taken to address non-compliance arelikely to focus on bringing the professional accountant intocompliance within a reasonable period.’

Para 54 of the proposed Standard proposes that five years is likelyto be a reasonable period for retention of detailed CPD records.

1 January 2006

Recommendations to IFAC

HKSA concurs with IFAC’s proposal in thisrespect. As explained in an earlier submission,the Society requires members to submit anannual deliberation and conducts a random auditof members’ compliance, as part of itsmonitoring process.

The Society agrees with IFAC’s proposal in thisrespect.

The HKSA believes that a minimum period of twoyears for retention of documents is sufficient,should a one-year cycle for compliance with theCPD requirements is adopted. However, it isagreed that five years will be more appropriate,should the proposed cycle of rolling three-yearperiod is finally adopted.

To allow time for member bodies to go throughthe legal or statutory procedures in amending itscurrent CPD scheme or introducing newrequirement, as well as to educate their membersof the new CPD requirements, the Societybelieves that the implementation of the new CPDstandard should not take effect until at least twoyears after its release.

Society News


HKAATProfessional BridgingExaminations - first graduatesThe Association is pleased to announce thefirst cohort of the Professional Bridging Ex-aminations (PBE) graduates. In the Decem-ber 2003 diet, a total of eight graduatessuccessfully completed all four papers ofthe PBE, some of them passing all the ex-aminations in one sitting. These graduatesare now eligible for direct admission to theHong Kong Society of Accountants (HKSA)Qualification Programme and are well ontheir way towards their goal of becoming aprofessional accountant. Congratulationsto them!

Recognising that many non-degreeholders aspire to a professional accoun-tancy qualification, the HKSA and the As-sociation launched the PBE in December2002. The PBE is specially developed forHKAAT graduates, giving them a direct al-ternate route to meet the HKSA Qualifica-tion Programme admission requirements.For more details on the PBE, please visitthe Association’s website at http://www.hkaat.org.hk.

Group photo at Blue Ribbon Beer Factory. Group photo at Ding Hu Shan.

Professional Accountant

Complete the HKSA Qualification Programme

Complete the Professional Bridging Examinations

HKAAT graduate

relevant work experience

Complete the HKAAT eight papers byexaminations or exemption

Register with HKAAT

Snapshot of the AccountingTechnician ExaminationsDecember 2002 GraduatesStatistical analysis of December 2002graduates, based on a questionnaire inwhich 80 per cent of the 363 graduatesresponded, shows that 37 per cent of thegraduates completed the Accounting Tech-nician Examinations within two years ofregistering as students, while 27 per centtook more than five years. Over half of thegraduates are under 28 years old. Looking

Age

Commercial174 (60%)

CPA Film38 (13%)

Industry34 (12%)

Government5 (1%)

Others40 (14%)

Employment

Time to completion

3–4 years106 (36%)

1–2 years101 (35%)

Less than 1 year6 (2%)

5 years or above78 (27%)

28 or above133 (45%)

24–2778 (27%)

20–23 79 (27%)

Under 191 (1%)

$10,000–$14,999108 (37%)

$7,000–$9,99980 (28%)

Below $7,00053 (18%)

$15,000–$19,99941 (14%)

$20,000 or above9 (3%)

Salary

Society News


at their career path, 60 per cent of thegraduates work in the commercial sectorwhile 13 per cent work in CPA firms.When it comes to monthly salaries, 51 percent of the graduates earn between $10,000and $19,999 and 3 per cent earn $20,000or more.

Visit to Zhaoqing UniversityThe aim of the Student AmbassadorsProgramme is to help students learn aboutrecent accounting, auditing, taxation andeconomic developments in China. Thisyear, the China Liaison Committee (CLC)and Student Affairs Committee (SAC) de-cided to do this via a visit to Zhaoqing Uni-versity (ZQU).

Participants included 20 students, fourSAC/Student Function Group (SFG) mem-bers and a member of the secretariatstaff. ZQU’s Foreign Affairs Office was thehosting unit and arranged the activities ofvisiting enterprises for the four-day studytour.

The journey started off on Thursday,25 December 2003. The leader, Dr JosephYau, briefed the participants on the pro-gramme while the coach headed towardsZhaoqing.

Professor Xu Zhen Hui, an officer ofthe Foreign Affairs Office of ZQU, greetedus at the lobby of the hotel we stayed at.After lunch, we attended an exchange semi-nar which covered an introduction to thehistory and development of ZQU and itsvarious faculties and was presented by theparty secretary of CPC Mr Chen You Shengand deputy head of the Department of Fi-nance Professor Lau Yuk Wan. After divid-ing participants into four groups, we talkedwith the ZQU students about their schoollife, learning environment, practicaltraining, and prospects after graduation.

Group sharing with Zhaoqing University students.Group photo with Professor Xu and Zhaoqing University students.

The day finished with a tour around theZQU campus.

The next day started with a meetingwith the Head of State Administration ofAccounting, Finance Bureau and the rep-resentatives of two accounting firms,ZhaqQing Tian Yuan Xian Zhan CPA Ltdand Zhong Peng CPA Ltd (�� !"�� ). We exchanged views on recentaccounting developments in Hong Kongand China, CPA examinations andqualifications, types of CPA firms and jointventures in the auditing profession inChina, and on the market and prospects inaccounting.

We then went to visit the firm ZhongPeng CPA Ltd (�� !"#$%) andwere received by the principal partner,Mr Wong. He introduced us to the organ-isation and described the services that thefirm provided. He also took us to visit aninkstone factory.

In the afternoon, we visited an elec-tronic components manufacturing enter-prise �� !"#, a well-known companylisted on the Shenzhen Stock Exchangewhose major business is manufacturingmicrochips. The company has applied thesix-sigma quality management system andhas become one of the top three enterprisesin Zhaoqing City, even though it has onlybeen in business for 20 years.

The next company visit was to anothertop enterprise — Blue Ribbon BeerFactory. Formerly this was a state-ownedenterprise but is now a joint venture invest-ment company. It licenses the Blue RibbonBeer patent from the USA and supplies thebeer to all the cities in China (except HongKong).

After the day’s formal agenda came toa close, we visited the famous Mao Temple(��). This temple is nearly 300 years old

and has been graded a protected historicalplace by the Central Government.

On the third day, we started with a walkaround Ding Hu Shan (�� ). Thismountain is famous as the air at its peakhas the highest density of negative ions inChina, because of the geographical envi-ronment and natural springs. At the top ofthe hill, which is 1,008 metres above sealevel, there is the largest inkstone in theworld, which weighs around two tonnes.Next to the inkstone is a copper tripodwhich is 6.68 metres high and weighs 16tonnes.

Then, we visited another enterprise, thePiao Xue Mineral Water Company (��

�� !"#$%). As was the case withthe Blue Ribbon Beer Factory, Piao Xueestablished a plant in Zhaoqing because ofthe pure and good quality spring water. Themineral water is delivered to the factory viaa 14.8 kilometre underground water pipe.

The fourth and final day, we visitedanother very famous location, Qi Xing Yan(�� ), where we spent some happyhours walking and enjoying the viewsaround the rocky hills and calm lakes un-der a clear blue sky.

While the coach was on the way home,each of us shared our experiences andfeelings. All the participants were alreadylooking forward to joining the comingyear’s study tour as they felt this was a su-per va lue -added tr ip in ter ms ofaccommodation, transportation and espe-cially the unusual knowledge gained. Wehad all learnt something that could not belearnt from books, and were encouragedto see the way that China’s industrial re-forms had successfully progressed along afast and healthy track. In particular, we weregrateful for the warm hospitality shown bystaff and students at ZQU.

Society News


Three teams from the HKSA ExecutiveCertificate Course in IT Risk Managementfor Accountants squared off against eachother on Saturday 27 March, in a competi-tion to assess their IT risk managementknowledge and their presentation skills.

The presentations represented the fi-nal assignment of an eight-day classroom-training course in IT Risk Management,organised by HKSA, in collaboration withtechnology provider Hewlett-Packard andthe University of Hong Kong School of Pro-fessional & Continuing Education (HKUSPACE). The 14 members who took partin the competition were the first graduat-ing class.

The course was launched to developaccountants’ competency in standards andpractices of risk management in the ITbusiness environment. ‘It was designed togive real life experience to accountants.Most accountants work behind closed doorsbut they need to be more than numbercrunchers. They must possess soft skills[presentation ability] to excel ,’ said GaryWong, project director for the trainingprogramme. ‘The course gives them a struc-tured knowledge base. We’re not trainingpeople to work in a server room but if theysee an IT project proposal, they will be ableto tell if something is missing.’

Divided into two parts, the course com-prises an Essential Level and a ProfessionalLevel. The Essential Level consists of fourmodules delivered over two days while theProfessional Level offers a combination ofmanagement and technical tracks over aperiod of six days.

Members delivered top quality IT risksolutions through the HKSA’s innovativetraining programme

In the competition, two teams of five stu-dents and one team of four students weregiven the task of devising a risk solution foran IT system for a hypothetical manufactur-ing company in Guangdong Province.

‘The teams played different roles. Onerepresented the company’s financedivision, another the external auditors anda third the chief financial officer,’ says DrRussell Yiu, course director and projectconsultant at HKU SPACE. ‘The aim wasto create a secure IT system that would al-low the company to achieve its businessobjectives in a cost effective manner.’

Each team had 30 minutes for itspresentation, followed by a 15-minute ques-tion and answer session. The judging panelconsisted of Dr Yiu; John Barnes, chairmanof the HKSA’s Trust Services Committee;Susanna Chiu, HKSA Council member; andVincent Chan, chairman of the HKSA ITTraining Development Committee.

Armed with power point slides, theteams delivered enthusiastic presentations.The judge listened attentively and used thequestion-and-answer period to probe forany weaknesses. ‘The idea was to seewhether their recommendations weresound and practical,’ says judge Mr Chan.In responding to questions, team membersdemonstrated they were able to thinkquickly on their feet.

After a brief closed-door consultation,the judges made their decision and awinner was chosen. ‘You all did a goodjob and you all have a basic understand-ing of IT risk management,’ Dr Yiucomplimented the group after everyone

had filed back into the room to await theannouncement.

He noted that while the judges foundother presentations ‘too technical’, onemanaged to strike the right balance of tech-nical and management issues. ‘We foundthe best performing team was Team 3,’ hedeclared, as Team 3 members cheered andcongratulated each other. On the teamwere Libby Chow, Alvin Chan, AnthonyLeung, Inez Ng and Mabel Ngan.

A pleased Ms Chow, the leader of Team3 who works as an internal auditor for CityUniversity of Hong Kong, said winning wasless important than everyone doing theirbest. ‘We started preparing right after theend of the course around Chinese NewYear. The course was quite interesting andwe all learned a lot from it,’ she said, add-ing that the programme had piqued herinterest enough to want to pursue the sub-ject further in the future.

Fellow teammate Mr Chan, an account-ing officer with the Hospital Authority, saidthe members were surprised that they hadwon. ‘We’re not involved in IT so much inour daily work so we didn’t go into toomuch technical detail. We had to take anall-round approach.’ He added that theteam was planning to celebrate its victorywith a lunch together.

Tony Lock, the leader of Team 1 andmanager-commercial business developmentat Hutchison Global Communications, saidhe was ‘happy’ with his team’s effort even ifthey didn’t win. ‘We stuck more with thetechnical side but we learned that coveringboth the technical and management sideswas a better approach. We should have fo-cused more on the business plan,’ heobserved. Other members of his team wereLena Chan, Ivan Chow and Alpha Pang.

Team 1 member Ms Chan, who works asan assistant finance manager at the HospitalAuthority, felt the course was extremely

Guests, judges and students taking a group photo at the end of the ceremony.David Sun (third left) presents prizes to the winning team.

Society News


valuable since it introduced her to technicalmatters which she knew little about before.‘Now I know how risky it is if we don’t haveknowledge about these things,’ she said.

Michael Chan, team leader of Team 2and a sole practitioner, said the programmehelped bring him up-to-date about IT.‘When I qualified 20 years ago, the busi-ness environment was totally different. Wetouched very little on IT and computers,’he recalled. As it happened, the server inhis office broke down as he was taking thecourse and provided him with an expen-sive lesson in the integral part that IT playsin his business. ‘It made me realise thatthere is a real danger if something happensto my infrastructure,’ Mr Chan said. Hisother team members were Matthias Chen,George Lam, Sylvia Wong and Gavin Yu.

The winning team members receivedgold-plated stationery/name card-holdersets. All of the graduates were awardedHKSA Executive Certificates in IT RiskManagement for Accountants and posedfor a group photo with David Tak-kei Sun,immediate past president of HKSA and adriving force behind the course; Winnie

Cheung, chief executive and registrar ofHKSA.; Dr SM Shen, deputy director ofHKU SPACE; and HKSA IT Training De-velopment Committee and Member Inno-vation & Technology Steering Boardmembers.

In his remarks, Mr Sun praised thegraduates for the quality of their presenta-tions and spoke about how the desire tolearn and to continue to polish one’s skillsare among the hallmarks of being aprofessional.

The training programme will continueto be offered on an ongoing basis four times

a year. HKSA’s Mr Wong said the Societyhas requested HKU SPACE to award aca-demic credits for the course so that gradu-ates can apply the credits to other HKUSPACE IT programmes. Mr Wong said theSociety was also working with HKU SPACEto further enhance the course content.

The course is part of the HKSA’s Mem-ber Innovation & Technology SteeringBoard’s strategy to provide innovativeservices and products that support members’development needs in the technology age.

The next course will commence on8 May 2004. Please see p80 for details.

Team presenting. Panel of judges listen attentively to the presentation.

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