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Hong Kong’s accounting watchdog to investigate Apple Daily publisher Next Digital’s financial statements, auditors
- Financial Reporting Council to investigate Next Digital’s financial statements for two and a half years up to September 2020 for ‘misleading information’
- The publisher of the now-defunct Apple Daily newspaper is also being investigated by the market watchdog and a special inspector appointed by the financial secretary
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Hong Kong’s accounting regulator has started an investigation into the financial statements and two auditors of Next Digital, the publisher of the now-defunct Apple Daily newspaper.
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The Financial Reporting Council (FRC) said on Wednesday that its investigation will focus on whether Next Digital’s financial statements for the two and a half years up to September 2020 contained any misleading public information.
The FRC will also investigate the work of its auditors – Deloitte Touche Tohmatsu in 2019 and CCTH CPA in 2020 – to make sure their audits were reliable. Both auditors gave a clean chit to Next Digital’s financial statements and later resigned.
Deloitte declined to comment, while CCTH could not be reached for comment.
06:28
Hong Kong tabloid Apple Daily ceases operations after top executives arrested, assets frozen
Hong Kong tabloid Apple Daily ceases operations after top executives arrested, assets frozen
“The FRC announces the initiation of enquiries and investigations … to protect the interests of shareholders and the investing public so as to maintain public confidence in our financial market and independent auditor regulation,” the council said in a statement.
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The FRC is the latest regulator to take action against Next Digital, which is controlled by jailed tycoon Jimmy Lai Chee-ying. Financial Secretary Paul Chan Mo-po on July 28 appointed veteran accountant Clement Chan Kam-wing as a special inspector to look into the overall financial affairs of Next Digital, while the market regulator Securities and Futures Commission on the same day said it was also investigating the company.
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