15 June 2012

Dear member and student,

Alert on government's reply re clause 399

Further to my alert to you on 13 June 2012 enclosing our third submission to the Legislative Council regarding Clause 399 of the Companies Bill, which would introduce criminal sanction on auditors, we have received from the administration their response to the Institute's concerns. The government has asked the Institute to send this to members.

The administration's paper has also been circulated to LegCo. We also understand that since my last alert, LegCo has received over 50 submissions from various audit firms supporting the Institute's opposing views on the introduction of this provision in the Companies Bill.

Sincere regards,

Winnie C.W. Cheung
Chief Executive
Hong Kong Institute of CPAs

CPA: The Success Ingredient