Hong Kong’s accounting regulator has reprimanded and fined Forvis Mazars CPA and Grant Thornton Hong Kong a total of HK$3.72 million for widespread and systemic failures to archive files on a timely basis.
The Accounting and Financial Reporting Council sanctioned the two audit firms for widespread breaches of the 60-day archive requirement as well as deficiencies relating to their systems of quality control and management, according to a statement on Tuesday.
The AFRC has imposed a pecuniary penalty of HK$1.4 million on Mazars and HK$2.32 million on Grant Thornton and ordered them to pay the investigation costs and expenses.
Archiving audit documentation on a timely basis is critical to ensure that the audit documentation will not be improperly altered or tampered with after archiving, thereby preserving the integrity of audit documentation, the AFRC said.
