For practicing accountants that are still in doubt about getting their own chartered accountant insurance, there has been a case that proves its importance in the practice. The Hong Kong Institute of Certified Public Accountants recently received an order released by their disciplinary committee on June 7 of this year regarding an accountant named Wong Kong Yiu. His membership number will be deleted from the CPAs register for a period of five years and the order was effective July 19. Aside from the suspension, he was also required to pay an amount of $94,050 HK dollars for the disciplinary proceedings.
Wong has been handling a corporate practice wherein he is the only practicing director and also the sole shareholder. He was disciplined because he did not follow the rules that were put in place by the council of the Institute regarding the renewal of his Professional Indemnity Insurance. He continued to ignore the warning for the past four years. He was also ordered to handle the run-off cover once his practice was unregistered.
Wong also made a wrong declaration to the Institute regarding the practice. He said that he had a Professional Indemnity Insurance cover for the last four years that he has been renewing the registration of his practice.
Moreover, Wong was also subjected to a practice review to examine his other practice. Wong did not comply with the Practice Review Committee’s order that he should be in touch with the practice reviewer in order for a date to be set wherein the site visit can be conducted.
Once all information available was placed under scrutiny and evaluation by the Institute, they submitted a complaint that indicates Wong has been violating the Professional Accountants Ordinance.
With regards to the false declarations made by Wong, it was revealed that he was in violation according to the section 110.2 of the Code of Ethics for Professional Accountants. In the end, he was found to be guilty because of his dishonorable demeanor.
The committee also ruled that Wong did not comply with the order made by the Practice Review Committee and he has no acceptable excuse. This is a reminder to all professionals that it is important to have a chartered accountant insurance in order to protect their practice and to comply with the governing agency’s rules.