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​The FRC adopted an investigation report finding that the auditor (the Auditor) of a listed entity (Listed Entity) failed to obtain sufficient appropriate audit evidence to support the measurement and recognition of a gain on extinguishment of a promissory note (the Promissory Note) included in the consolidated financial statements of a Listed Entity for the year ended 31 March 2013. 

Under the transitional provisions of the amended FRC Ordinance, since the relevant audit was completed before 1 October 2019, the investigation report has been referred to the Hong Kong Institute of Certified Public Accountants to determine if any disciplinary actions are warranted. Names of the relevant parties are being withheld at this time to avoid prejudicing any related disciplinary proceedings.

The investigation was initiated in November 2016, stemming from the FRC's financial statements review programme.

For details, please click here.