of the Institute of Chartered Accountants of
New Zealand (Member Guilty of Conduct Unbecoming an Accountant)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 30th day of June 2005, which the member did not attend but was represented by counsel, the tribunal found that Hoong Hua Yong (also known as Francis Yong), of Auckland, had pleaded guilty to the following charge and admitted the following particulars.
Charges
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the rules made thereunder, and in particular Rule 21.30, the member is guilty of:
(1) conduct unbecoming an accountant.
Particulars
IN THAT in his role as a chartered accountant in public practice and in relation to a complaint by the practice review board, the member:
(a) entered into an agreement with a provisional member which had the effect of defeating the requirements relating to the granting of certificates of public practice;
(b) entered into an agreement for financial benefit to lend the chartered accountant brand to a company
to allow that company to practise as a chartered accountant in circumstances where he contracted
to have “no responsibility whatsoever over the financial liability which the approved company already has or may have in the future since he has
no right whatsoever over the approved company”;
(c) authorised the use of his name and/or his professional status to a company which allowed
the company to practise as a chartered accountant when he contracted to have “no responsibility whatsoever over the financial liability which the approved company already has or may have in
the future since he has no right whatsoever over the approved company”;
(d) was remunerated for providing approved
company status with the institute to ABACI Chartered Accountants Limited, thereby allowing
a company to practise as a chartered accountant;
(e) conducted audits that were not in accordance with the institute’s mandatory auditing standards; and
(f) conducted an audit of a company in the month
of October 2003 prior to becoming a director and shareholder of ABACI Chartered Accountants Limited but signing the audit off on the 7th day
of November 2003 and two days after becoming
a director and shareholder of ABACI Chartered Accountants Limited and knowing that ABACI Chartered Accountants Limited had prepared the accounts for the company.
When a person becomes a member of the institute, they agree to abide by the rules of the institute and comply with professional and ethical standards, and? breaches of those rules is unacceptable behaviour. The member has been a party to an agreement to circumvent the public practice rules of the institute which exist for the protection of the public.
Orders of the Tribunal
(a) Pursuant to Rule 21.31 (c) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Hoong Hua Yong pay to the institute a monetary penalty of $2,500.00.
(b) Pursuant to Rule 21.31 (k) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Hoong Hua Yong
be censured.
(c) Pursuant to Rule 21.31 (n) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Hoong Hua Yong
is not to undertake audit assignments for five years.
(d) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Hoong Hua Yong pay to the institute the sum of $3,500.00 (inclusive of G.S.T.)
in respect of the costs and expenses of the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
In accordance with Rule 21.35 of the Rules of the
Institute of Chartered Accountants of New Zealand,
the disciplinary tribunal directed that the decision be published in the Chartered Accountants Journal, the
New Zealand Gazette and the New Zealand Herald with mention of the members names and locality including his Chinese and English names.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to the member of the exercise of its powers, appeal in writing to the appeals council of the institute against the decision.
No decision, other than the direction as to publicity, shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 11th day of July 2005.
R. J. O. HOARE, Tribunal Chairman.