Topic 3: Professionals' Supporting Role to Company Directors in Mastering Ethical Challenges

External Auditor - Ken TSE
  • Ken TSE went to Thailand together with Joseph WAN, Chairman of Manfold, who paid for the trip. There, Joseph asked Ken to speed up the year-end auditing process in return for not pressing for discount of the auditing fee.

  • The auditing job of Manfold formed part of Ken's services to that company only. His firm also provided tax work both in the Mainland and in Hong Kong and IT consultancy service for Manfold at charges much more than the auditing fees.

  • Ken raised his concern with Joseph over the more liberal credit policy, the surge of sales and the drop of maintenance costs. However, he did not pursue his query further. Ultimately, Ken indicated that he would give an unqualified opinion on the accounts of Manfold.

  • Ken and Joseph belonged to the same automobile club. Joseph was also the godfather of Ken's son who just received a highly discounted vintage car from Joseph.
Financial Analyst - Francis YEN
  • The financial analyst, Francis YEN, went to Thailand for golfing and scuba diving together with Daniel, the MD of Manfold. The trip was paid by Daniel. Shortly after the trip, Francis wrote an analysis very favourable to Manfold.