The Financial Bureau condemns PwC and two partners for audit deficiencies, imposing a total fine of 1.6 million

The Financial Reporting Council stated that due to multiple violations of auditing standards by PricewaterhouseCoopers, Zheng Guang'an, and Jiang Lingyan during the audit of the consolidated financial statements of Hong Kong-listed company Dynasty Wines (00828.HK) for the years ended December 31, 2010, and December 31, 2011, disciplinary actions were imposed on them.

The Financial Reporting Council indicated that the project team of PricewaterhouseCoopers, with Zheng Guang'an as the project partner, had deficiencies in the audit work related to revenue recognition, failing to obtain sufficient appropriate audit evidence for the revenue recorded by the company, resulting in the erroneous issuance of an unqualified opinion. Jiang Lingyan was appointed as the quality control reviewer for the aforementioned audit but failed to identify the project team's lack of sufficient appropriate audit evidence.

The Financial Reporting Council condemned the aforementioned regulated individuals and imposed a total fine of HKD 1.6 million to reflect the seriousness of their misconduct.

On February 20, the authorities issued a decision notice to PricewaterhouseCoopers and the two individuals. The regulated individuals subsequently applied for a review of the decision to the Accounting and Financial Reporting Review Tribunal on March 13 but ultimately withdrew the application voluntarily and agreed to pay the legal costs, with the decision notice taking effect immediately