The AFRC is the independent regulator for the accounting profession in Hong Kong, vest with power to investigate:
- Misconduct (including practice irregularity) committed by a PIE auditor or its registered responsible person registered with the AFRC or PIE auditor recognized by the AFRC;
- Practice irregularity of non-PIE auditor; and
- CPA misconduct (including professional irregularities) of certified public accountants registered with the Hong Kong Institute of Certified Public Accountants (HKICPA) or practice units registered with the AFRC (practice units)
We investigates all professional persons as defined in AFRCO including:
- PIE auditor
- Registered PIE auditor
- Recognized PIE auditor
- Registered responsible person of a registered PIE auditor
- An engagement partner;
- An engagement quality control reviewer; or
- A quality control system responsible person.
- Non-PIE auditor
- Professional person
- CPA
- Practice Unit (CPA (Practising), CPA firm, Corporate practice)
In relation to PIE auditors and registered responsible persons
Pursuant to section 23 of the AFRCO, the AFRC may direct an investigator to carry out an investigation in relation to a PIE auditor or registered responsible person where the AFRC:
- has reasonable cause to believe that a PIE auditor has carried out a PIE engagement completed on or after 1 October 2019 in a way that is not in the interest of the investing public or in the public interest;
- has reasonable cause to believe that a provision of the AFRCO may have been contravened by a PIE auditor or registered responsible person; or
- for considering whether to impose a sanction under section 37D, 37E or 37F of the AFRCO, has reason to inquire into whether a PIE auditor or registered responsible person, or a person while being such an auditor or responsible person, has or had committed a misconduct.
In relation to non-PIE auditors
Pursuant to section 23A of the AFRCO, the AFRC may direct an investigator to carry out an investigation in relation to a non-PIE auditor where the AFRC has a reasonable cause to believe that a non-PIE auditor has or had committed a practice irregularity as defined under section 4 of the AFRCO.
In relation to professional persons
Pursuant to section 20ZZH of the AFRCO, the AFRC may direct a CPA investigator to carry out an investigation in relation to a professional person where the AFRC has reason to inquire into whether a professional person, or a person while being a professional person, has committed a professional irregularity as defined under section 3B of the AFRCO.
The AFRC may, having regard to an investigation report:
- Close the case without further action;
- Take any follow-up action in accordance with the AFRCO that the AFRC considers appropriate; or
- Impose a sanction on, or take an action in relation to, the regulate investigated under the AFRCO.