The council is a statutory body which regulate auditors. The statements to be investigated include the 2019 and 2020 annual statements, as well as the 2021 interim statements. They covered the period from March 31, 2019 to September 30, 2020.

The council also stated that it would investigate into the audit of the 2019 financial results by Deloitte Touche Tohmatsu, and that of the 2020 annual results by CCTH CPA Limited.

It said that it identified questions about the financial statements and audits of Next Digital through proactive monitoring of market developments, a referral by another regulator and a complaint from a member of the public.

Next Digital, founded by the imprisoned pro-democracy media tycoon Jimmy Lai Chee-ying, has been suspended since June 17 this year.

The financial secretary Paul Chan Mo-po announced last month the appointment of Clement Chan Kam-wing, former presidents of the Hong Kong Institute of Certified Public Accountants, to inspect the corporate governance of the media company.

The secretary said he suspected the company's officers used it to conduct unlawful activities.