Bank of Communications director reprimanded for past audit failures

Bank of Communications Co., Ltd. announced that its independent non-executive director, Mr. Wong Tin Chak, was reprimanded by the Accounting and Financial Reporting Council (AFRC). The reprimand, detailed in a press release, relates to Mr. Wong's role as an audit engagement partner for an accounting firm over a decade ago. He was cited for multiple audit deficiencies concerning revenue recognition for a company previously listed in Hong Kong.

The AFRC identified that Mr. Wong committed several deficiencies in audit procedures, including those related to revenue recognition and external confirmation letters. These lapses resulted in a failure to obtain sufficient appropriate audit evidence and indicated a lack of professional skepticism regarding the assessed risk of material misstatement of revenue. Consequently, the AFRC imposed a fine of HK$416,000 on Mr. Wong.

Despite the reprimand, the bank’s board of directors has determined that the matter will not affect Mr. Wong's ability to continue his duties. The board noted that the AFRC did not find Mr. Wong's misconduct to be intentional, dishonest, or deliberate, and that he has no prior record of disciplinary actions.