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Zhen Hui Certified Public Accountants (Hong Kong)
Hong Kong · Triennially Inspected
- Inspection year
- 2024
- Report date
- 11-Sep-2025
- PCAOB release
- 104-2025-143
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 21
- Part I.B deficiencies
- 18
- Report
- View PDF ↗
Deficiencies (21)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A9 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not identify and evaluate departures from GAAP related to the issuer's inaccurate disclosures that it recognized revenue in conformity with FASB ASC Topic 605 Revenue Recognition which was superseded by FASB ASC Topic 606 Revenue from Contracts with Customers prior to the year under audit. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its disclosures of revenue recognition and determined that the disclosures were inaccurate. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected the disclosures in a subsequent filing. The firm reissued its report on the financial statements. Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Revenue | The firm did not perform procedures to test the issuer's restated revenue disclosures discussed. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Revenue | The firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Accounts Receivable | The firm sent positive confirmation requests to test accounts receivable. The firm did not perform any alternative procedures for the positive confirmation requests for which it did not receive a response. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 5 | Accounts Receivable | The firm did not perform procedures to test the allowance for doubtful accounts beyond reading issuer prepared accounts receivable aging schedules. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 6 | Related Party Transactions | The firm did not perform any procedures to test the transactions with related parties disclosed in the financial statements. (AS 2410.12) Financial statement audit only | AS 2410.12 | |
| 7 | Related Party Transactions | The firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 8 | Subsequent Events | The firm did not perform auditing procedures at or near the date of the auditor's report to ascertain the occurrence of subsequent events that may have required adjustment or disclosure essential to a fair presentation of the financial statements. (AS 2801.12) Financial statement audit only | AS 2801.12 | |
| 9 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The firm did not perform sufficient procedures to test one type of revenue because its procedures were limited to determining for a sample of transactions that a contract existed between the issuer and the customer. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Revenue and Related Accounts | The firm did not perform sufficient procedures to test another type of revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices and/or other issuer prepared information. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Revenue and Related Accounts | The firm did not perform procedures to test the completeness of a related account. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Revenue and Related Accounts | In addition the firm did not perform sufficient procedures to test this account because it limited its procedures to tracing a sample of transactions to certain issuer-prepared information. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Certain Assets | The firm did not perform procedures to test the fair value of a certain asset beyond performing recalculations of an issuer-prepared schedule. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 6 | Significant Transactions | The firm did not perform any procedures to evaluate the issuer's accounting treatment of certain significant transactions. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 7 | Significant Transactions | In addition the firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain required disclosures related to these significant transactions. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 8 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer C4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Revenue | In addition the firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Related Party Payables | The firm sent positive confirmation requests to test related party payables. The firm did not perform any alternative procedures for a positive confirmation request for which it did not receive a response. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 4 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |