The scope of a review includes identifying good quality application of financial reporting requirements and set out our expectations for those with oversight of the reporting process to consider. Throughout the review, the AFRC will also consider whether there is non-compliance with financial reporting standards, auditing and assurance standards, and other relevant financial reporting guidelines (such as accounting requirements under the Listing Rules of the Stock Exchange of Hong Kong Limited and disclosure requirements under the Hong Kong Companies Ordinance).

A risk-based and/or thematic approach is adopted as appropriate to identify and select financial statements for review based on various criteria which are reviewed and set by the AFRC and may be updated in response to subsequent changes in the current profession development, economic and regulatory environment.

The AFRC will consider issuing publications to provide an overview of our review, our observations and our expectations on financial reporting.

If non-compliance with accounting requirement is identified, an enquiry will be initiated.
If misconduct by auditor is identified, an investigation will be initiated.