Disclosure Records of Recognized Certification Authorities

Archive of Disclosure Record for HiTRUST.COM (HK) Incorporated Limited

(This is page 2 of the archive of the disclosure record for HiTRUST.COM (HK) Incorporated Limited ("HiTRUST") maintained by the Government Chief Information Officer ("GCIO") under section 31(1) of the Electronic Transactions Ordinance (Cap. 553) ("Ordinance"). Click this link to go back to page 1 of the archive of the disclosure record.)

Assessment Report (29 April 2002 - 17 April 2003)

In accordance with section 43(3) of the Ordinance, the GCIO must publish in the disclosure record for HiTRUST as a recognized certification authority ("CA") the date of and the material information in the assessment report on the CA services of HiTRUST. Only those parts of the report containing material information are herewith published.

A. Date of the Report

• The date of the report is 17 April 2003.

B. Material Information

1. The assessment report is prepared by the assessor for the period between 29 April 2002 and 17 April 2003.

Recognized CA practices

2. In the assessor's opinion, in all material respects:
   1. the management assertions in respect of HiTRUST's compliance with the sections of the Code of Practice (Note 1) set out in Part A of Appendix 3 to Practice Note 870 (Note 2) for the period from 29 April 2002 to 17 April 2003 are reasonable. In particular, HiTRUST has:
      1. disclosed its business practices in its CPS (Note 3) in accordance with the Ordinance and the Code of Practice and provided its services in accordance with its disclosed business practices;
      2. complied with the requirements in respect of the use of a trustworthy system to support its operations in accordance with section 37 of the Ordinance and the Code of Practice; and
      3. complied with the requirements in respect of recognition of its certificates in accordance with sections 36, 38, 39 and 40 of the Ordinance and the Code of Practice;
   2. no information came to the attention of the assessor during the course of the assessment that would indicate that the management assertions in respect of HiTRUST's compliance with the sections of the Code of Practice set out in Part B of Appendix 3 to Practice Note 870 for the period from 29 April 2002 to 17 April 2003 are not reasonable; and
   3. based on the conclusions drawn in paragraphs (a) and (b) above, the management assertions in respect of HiTRUST's compliance with the provisions of the Ordinance applicable to a recognized CA for the period from 29 April 2002 to 17 April 2003 are reasonable.

Financial projections

3. In the assessor's opinion, in all material respects, the accounting policies upon which HiTRUST's projected cashflow statements and projected balance sheets for the period from 1 March 2003 to 29 February 2004, and projection of operating costs for the next 90 days from 1 March 2003, in respect of the CA's operations relevant under the Ordinance are based, are consistent with those normally adopted by HiTRUST and conform with generally accepted accounting principles adopted in Hong Kong, and the financial projections have been properly compiled on the basis of the assumptions made by the management of HiTRUST.
4. It has been ascertained from HiTRUST that the amount of net current assets (i.e. current assets less current liabilities) as shown in the unaudited management accounts of HiTRUST for the month ended 28 February 2003 was in a positive net current assets position. The amount of net current assets as shown in the unaudited management accounts of HiTRUST for the month ended 28 February 2003 exceeds the 90-day projection of operating costs from 1 March 2003.
5. The assessor has not carried out any verification work on the unaudited management accounts of HiTRUST for the month ended 28 February 2003.

Potential liabilities

6. In the assessor's opinion, in all material respects, the management assertion that HiTRUST has implemented and maintained appropriate procedures to determine and manage its potential liabilities in relation to the issue of certificates are reasonable.

Notes

1. Code of Practice for Recognized Certification Authorities (Version 1.0) issued by the then Director of Information Technology Services under section 33 of the Ordinance.
2. Practice Note 870 "The Assessment of Certification Authorities under the Electronic Transactions Ordinance" issued by the then Hong Kong Society of Accountants.
3. Certification practice statement.
4. The notes in the above paragraphs are disclosed in accordance with section 31(2) of the Ordinance.