SCANDALS

In January 1980 a young police officer named John MacLennan committed suicide in his Ho Man Tin flat. His death came mere hours before he was to be arrested for committing homosexual acts still, at that point, illegal in Hong Kong. But this was more than the desperate act of a young man, ashamed and afraid; both his death and the subsequent investigation were a smokescreen for a scandal that went to the heart of the establishment. MacLennan came to Hong Kong from Scotland during a time of social unrest and corruption scandals, a time when the triads still took their cut, and when homosexuality and paedophilia were considered interchangeable and both offered easy targets for blackmail. The governorship of Sir Murray MacLehose was to be a time of reform and progress, but with that remit came the determination of many to suppress scandals and silence those who stirred up trouble. Both the life and death of John MacLennan seemed to many of those in power to threaten the stability of one of

In January 1980, a young police officer named John MacLennan committed suicide in his Ho Man Tin flat. His death came mere hours before he was to be arrested for committing homosexual acts still, at that point, illegal in Hong Kong. But this was more than the desperate act of a young man, ashamed and afraid; both his death and the subsequent investigation were a smokescreen for a scandal that went to the heart of the establishment. MacLennan came to Hong Kong from Scotland during a tumultuous time in Hong Kong’s history. The governorship of Sir Murray MacLehose was to be a time of reform and progress, but with that remit came the determination of many to suppress scandals and silence those who stirred up trouble. Both the life and death of John MacLennan seemed to many of those in power to threaten the stability of one of Britain’s last colonies.

Over the years auditing has developed into a specialised function with complex ethical, legal and economic implications. The role of auditors in providing credibility is even more important in a society like Hong Kong, which relies heavily on its reputation as an international financial and business centre. The financial crises and accounting scandals reported in recent years, which led to economic meltdowns and massive loss in capital resources across the globe, highlights the vital role of auditors as gatekeepers and the importance of high quality auditing in ensuring corporate transparency and honest financial reporting. The third edition is thoroughly revised to take into account the new Companies Ordinance (Chapter 622, effective 2014) and Hong Kong Standards on Quality Control, Auditing, Assurance and Related Services (updated June 2014), and numerous developments of a full range of auditing topics since the previous edition, including: - Auditor's legal duties and liabilities