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Navigating economic uncertainty: Insights for 2024 year-end audits

Navigating economic uncertainty: Insights for 2024 year-end audits 9 October 2024 The Accounting and Financial Reporting Council ( AFRC ) today has published Audit Focus for 2024 year-end audits . ... Critical reminders to auditors are also provided to ensure that audit quality is upheld for the upcoming year-end audits. ... To that end, this Audit Focus outlines key milestones and essential actions for auditors, management and audit committees of listed entities during different phases of an audit.

AFRC calls for concerted efforts to improve the quality of financial reporting and audit in Hong Kong

AFRC calls for concerted efforts to improve the quality of financial reporting and audit in Hong Kong 13 June 2024 The Accounting and Financial Reporting Council ( AFRC ) today publishes its report Roundtable Discussion on Audit Quality and Climate-integrated Audits in Hong Kong . ... The discussions focused on audit quality of Hong Kong listed companies and the threat posed to them by stagnation of audit fees and opportunistic changes of auditors. ... The report points out the need for thorough understanding of the benefits of high-quality audits and what audit quality entails among audit committees and auditors.

The Supervision and Evaluation Bureau of the Ministry of Finance and the Financial Reporting Council of the Hong Kong Special Administrative Region sign a Memorandum of Understanding to promote cross-boundary cooperation and enhance audit quality

As the SEB and the FRC have achieved audit regulatory equivalence, both parties will expand cooperation based on the principle of mutual reliance under the MOU. ... In the future, the FRC will be able to make request under the MOU to the SEB for assistance in gaining access to audit working papers of Hong Kong audit firms located in the Mainland. ... We believe that with the MOU in place, the FRC and the SEB will be able to further promote crossboundary collaboration on audit regulation. ’

FRC completes first investigation with working papers obtained under MoU with the Supervision and Evaluation Bureau of the PRC Ministry of Finance

Hong Kong Standard on Auditing (HKSA) 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing prescribes the application of a competent understanding of the applicable financial reporting framework and the exercise of professional judgement by an auditor. ... HKSA 330 The Auditor’s Responses to Assessed Risks prescribes the design and performance of audit procedures that are responsive to particular risks of material misstatement and the need to conclude whether sufficient appropriate audit evidence has been obtained. ... It also prescribes the need in forming the audit opinion to take into account the auditor's conclusion in accordance with HKSA 330 whether sufficient appropriate audit evidence has been obtained.

FRC to Investigate Accounts and Audits of China Evergrande and Evergrande Property Services in respect of Certain Transactions

FRC to Investigate Accounts and Audits of China Evergrande and Evergrande Property Services in respect of Certain Transactions 15 August 2022 Evergrande Property Services Group Limited (Evergrande Property Services) The FRC has initiated: (1) An enquiry into the financial statements of Evergrande Property Services for both the year ended 31 December 2020 ( Evergrande Property Services 2020 Annual Accounts ) and the six months ended 30 June 2021; and (2) An investigation of the audit carried out by PricewaterhouseCoopers ( PwC ) on the Evergrande Property Services 2020 Annual Accounts. ... The financial statements in items (1) and (3) and the audits in items (2) and (4) are collectively referred to as the Accounts and the Audits respectively. ... Why we are enquiring into the Accounts and investigating the Audits Based on public announcements made by China Evergrande and Evergrande Property Services on 22 July 2022 respectively, the FRC identified questions about the classification of restricted bank deposits and other loans, the measurement of pledge guarantees given and the disclosure of related party transactions in the Accounts, and related questions about the Audits.

AFRC issues the Audit Fee Report and 2023 Survey Report on the implementation of Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors

AFRC issues the Audit Fee Report and 2023 Survey Report on the implementation of Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors 24 March 2023 The Accounting and Financial Reporting Council ( AFRC ), the independent audit regulator in Hong Kong, publishes two new reports today on audit fees and the appointment of auditors in Hong Kong. ... Audit teams experienced frequent pressure to reduce fees and to issue a clean audit opinion. ... Key findings: Audit Fees Paid by Listed Companies in Hong Kong 2020-2021 (The Audit Fee Report) The way in which audit committees discharge their fiduciary duties and approach issues such as audit quality has a direct impact on the level of audit fees.

Chairman and CEO's opinion piece: Getting an audit wrong can have profound consequences for credibility

At the heart of that engineering lies an institution often underestimated — the audit. Audits give investors confidence that financial statements are credible. ... This oversight helps ensure audit quality is upheld, not assumed. ... Companies and audit committees should ask not, “What does the audit cost?”

Chairman and CEO's opinion piece: Getting an audit wrong can have profound consequences for credibility

At the heart of that engineering lies an institution often underestimated — the audit. Audits give investors confidence that financial statements are credible. ... This oversight helps ensure audit quality is upheld, not assumed. ... Companies and audit committees should ask not, “What does the audit cost?”

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