FRC Welcomes the Appointments to Financial Reporting Review Panel

(9 July 2020, Hong Kong) The Financial Reporting Council ( FRC ) welcomes the appointments of 4 new members namely, Prof. Gu Zhaoyang, Prof. Hung Ming Yi, Prof. James Arvid Ohlson and Prof. Wang Xin, to the Financial Reporting Review Panel (FRRP) by the HKSAR Government today.

Quality financial reporting is the backbone of an efficient financial market, failing which public confidence and trust on listed companies will be undermined. Members of the FRRP play an indispensable role in conducting enquiries into possible noncompliance with accounting requirements in the financial reports of listed entities and making recommendations to the Board of the FRC on the removal of non-compliance identified, thereby upholding the quality of financial reporting and enhancing protection for investors.

Dr Kelvin Wong, Chairman of the FRC, remarked, “In recent months, we have witnessed an avalanche of local and global unusual accounting and auditing incidents. Incidents including resignations of auditors, rows between listed entities and their auditors and accounting fraud remind us of the importance of early detection of possible non-compliance with accounting requirements in financial reports of listed entities and its effectiveness as a safeguard to public interest. By banking on the professional expertise of the FRRP, the FRC has been able to effectively conduct enquiries concerning non-compliance with accounting requirements in financial reports of listed entities and require the entities in question to remove the noncompliance where appropriate.”

Ms Florence Wong, Acting CEO of the FRC said, “Under the new regime, the FRC has been taking a more proactive approach to identify possible non-compliance with accounting requirements of listed entities through our Financial Statements Review Programme (the Programme). We have reviewed and strengthened our risk-based filtering criteria. Due to the complex and unfavourable economic conditions brought about by the outbreak of COVID-19, business operations may become more risky and corporate accounts more vulnerable to non-compliance with accounting requirements. Charged with upholding the quality of financial reporting and auditing, the FRC will stay vigilant and critically review the filtering criteria of our Programme according to the deteriorating business environment.”

Ms Wong added, “We would like to express our heartfelt thanks to the retiring members, Prof. Cheng Shu-tong and Ms Teo Chew-ping, for their valuable contributions and send our warmest welcome to the new FRRP members. We look forward to working even closer with the FRRP in the coming year to discharge our statutory duties effectively, thereby safeguarding public interest.”

Please click here for the Government’s press release about the appointments.