NEW YORK (Reuters) -The U.S. Public Firm Accounting Oversight Board mentioned on Tuesday it had revoked the license of a Hong Kong agency and barred its proprietor for violating audit guidelines associated to corporations working in China, together with Luckin Espresso Inc.
The PCAOB mentioned in an announcement it had sanctioned Centurion ZD CPA & Co and its proprietor Chan Kam Fuk and hit them with a civil penalty of $75,000 for violating the board’s guidelines and requirements in reference to its audit work for 3 corporations.
The auditor did not correctly assess danger and get ample audit proof from Luckin in a 2022 opinion of the agency’s 2021 monetary reporting, the PCAOB mentioned. The Chinese language espresso agency in 2020 had settled accounting fraud costs with the SEC. The agency and Chan failed to make use of details about the fraud within the subsequent 12 months’s audit, PCAOB mentioned.
Centurion additionally violated PCAOB requirements in reference to the audit of a second Chinese language firm and with audit procedures for some subsidiaries of a Malaysian agency, the PCAOB mentioned.
Chan and Centurion didn’t admit or deny the findings. A lawyer for each didn’t reply instantly to request for remark.
(Reporting by Chris Prentice; Modifying by Mark Porter)
