AFRC Mission
On 1 December 2006, the AFRC was established as the independent regulator of the accounting profession. We exercise the full spectrum of our regulatory powers to uphold high standards of professional conduct, and thus protect public interest.
Our mission is to shape a competitive environment that will nurture and promote success of the profession. This pivotal role not only enhances the quality of financial reporting but in turn reinforces our pursuit of promoting the healthy development of the profession and Hong Kong’s position as a competitive international financial centre.
The AFRC fulfils its mission through:
Dialogue
Understanding
Collaboration
Law and Governance
Thought leadership
Our History
The AFRC (formerly the Financial Reporting Council, or FRC) was established in December 2006 under the Financial Reporting Council Ordinance (FRCO). The FRC began operating fully in 2007, carrying out its main functions of initiating enquiries into possible non-compliance with accounting requirements and conducting investigations into auditing misconduct.
On 1 October 2019, the Financial Reporting Council (Amendment) Ordinance came into effect, transforming the FRC into Hong Kong's independent auditor regulator. It was vested with direct powers of inspection and investigation, as well as the authority to recognise overseas auditors of listed entities and discipline PIE auditors. The AFRC is also responsible for overseeing the performance of the Hong Kong Institute of Certified Public Accountants (HKICPA) in relation to their functions concerning auditors of listed entities, including registration, setting standards on professional ethics, auditing and assurance, and setting continuing professional development requirements.
In 2021, the Government introduced further reforms to the accounting profession. On 22 October 2021, the Financial Reporting Council (Amendment) Bill was passed, transforming the FRC into the independent regulatory body for the accounting profession and renaming it the Accounting and Financial Reporting Council (AFRC).
Core Values
The AFRC is committed to upholding the following core values:
Independence and Impartiality
The AFRC operates independently. We perform our functions fairly, impartially and consistently, free from interference by the auditing profession and listed entities, and from political pressure.
Accountability and Transparency
The AFRC is dedicated to ensuring accountability and transparency in its regulatory role. We publish reports to help the profession and the public understand our operations and assess our performance.
Integrity
Board Members and staff are committed to upholding the highest standards of integrity and maintaining ethical excellence in all our activities.
Proficiency
We pledge to achieve our missions efficiently, effectively and professionally.
Functions
Issuance of practising certificates to certified public accountants.
Registration of accounting practice units and Public Interest Entities auditors.
Inspection and enforcement of audit quality in the accounting profession.
Oversight of the Hong Kong Institute of Certified Public Accountants' performance in its various statutory professional functions.