Showing 57 - 64 of 274 results
AFRC issues open letter to PIE auditors on upholding audit quality and professional integrity amid rising IPO engagements
However, this trend has also presented unprecedented challenges in maintaining highquality audits. In light of this, the AFRC has expressed concerns over the rapid increase in IPO audit engagements, through its open letter. The letter reminds PIE auditors of their critical responsibilities, which include safeguarding audit quality, upholding professional independence and integrity, and reinforcing public trust in Hong Kong’s capital markets. ... Our Actions To ensure that audit quality remains uncompromised, the AFRC will closely monitor how PIE auditors are managing their growing portfolios while maintaining audit quality, independence, integrity and professionalism.
AFRC reprimands MnO CPA Limited and its two directors for audit deficiencies and imposes fines of HK$600,000
AFRC reprimands MnO CPA Limited and its two directors for audit deficiencies and imposes fines of HK$600,000 20 November 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following corporate practice and two of its directors for negligence and multiple breaches of auditing standards in relation to the audit of the consolidated financial statements of a Hong Kong listed company, New Concepts Holdings Limited and its subsidiaries (collectively, Group ), for the year ended 31 March 2017 ( 2017 Audit ): MnO CPA Limited (formerly known as Wellink CPA Limited) (registration no. M0472) ( MnO ); Ms Chan Yan Ting ( Chan ), the engagement partner for the 2017 Audit (collectively with MnO, the Auditor ); and Mr Ngan Hing Hon ( Ngan ), the engagement quality control reviewer for the 2017 Audit. ... At the time of the 2017 Audit, the Group was seeking to expand its relatively new environmental protection business in the Chinese Mainland.
AFRC issues its first Report on the Analysis of the PIE Audit Market in Hong Kong
AFRC issues its first Report on the Analysis of the PIE Audit Market in Hong Kong 27 March 2024 The Accounting and Financial Reporting Council ( AFRC ) today publishes its first Report on the Analysis of the Public Interest Entity Audit Market in Hong Kong ( Report ). ... Actively communicate and demonstrate the value of a quality audit to listed companies and adjust competitive strategy from price-based to audit quality-based to ensure audit quality will not be compromised. ... This could allow PIE auditors to leverage a diverse talent pool and enhance audit quality. Audit Committees: Assert role in audit fee negotiation and ensure that audit fees are agreed at a level that allows auditors to devote sufficient time and appropriate resources to conduct a quality audit.
AFRC 2022 Annual Inspection Report provides transparency about audit quality and holds firms accountable for their performance
We saw a progressive improvement in audit quality, mainly in Category A ( Cat A ) firms. ... This is a loud and clear message that those firms without substantial improvement in audit quality rating during the 202022 Cycle, should immediately sharpen its focus on improving audit quality and protecting public interest. ... It is their primary responsibility to ensure the quality of financial reporting and audits and therefore should maintain regular communications with the auditors on the key audit risks and resolve any issues identified during the audit.
AFRC reprimands BDO Limited and two others for serious audit breaches, imposes fines totalling HK$1.456 million and gives its first direction for additional CPD in disciplinary case
AFRC reprimands BDO Limited and two others for serious audit breaches, imposes fines totalling HK$1.456 million and gives its first direction for additional CPD in disciplinary case 20 December 2024 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE auditor and its practising directors for multiple breaches of auditing standards in relation to the audits of China Water Affairs Group Limited ( Company ), a Hong Kong listed company, and its subsidiaries (collectively, Group ) for six consecutive years ended 31 March 2011 to 31 March 2016 ( 2011 to 2016 Audits respectively): BDO Limited (registration number M0200) ( BDO ); Mr Lo Ngai Hang ( Lo ), engagement partner for the 2011 and 2012 Audits; and Mr Lam Hung Yun Andrew ( Lam ), engagement partner for the 2013 to 2016 Audits. ... The AFRC found that during the 2011 to 2016 Audits, the Regulatees failed to perform adequate audit procedures, obtain sufficient appropriate audit evidence, and exercise appropriate professional judgment in evaluating the accounting of the relevant water supply arrangements. ... Further, BDO and Lam also failed to critically assess whether various legal opinions obtained were relevant or sufficient in the 2015 and 2016 Audits. In light of the aforesaid, there were multiple serious breaches of auditing standards during the relevant years of audits, and the Regulatees are guilty of CPA misconduct.
AFRC reprimands Ting Ho Kwan & Chan and three others for serious audit breaches and imposes fines over HK$1.7 million
AFRC reprimands Ting Ho Kwan & Chan and three others for serious audit breaches and imposes fines over HK$1.7 million 9 September 2024 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE audit firm and its then partners for serious deficiencies, involving negligence and multiple breaches of the auditing standards, in relation to the audits of a Hong Kong listed company, REXLot Holdings Limited ( REXLot ) (in liquidation since 20 August 2020), for the years ended 31 December 2013 and 31 December 2014 ( 2013 Audit and 2014 Audit respectively): Ting Ho Kwan & Chan (firm registration no. 0631) ( THKC ); Mr Chan Shu Kin (also known as Albert Chan ), engagement partner for both audits (together with THKC, the Auditor ); Ms Chan Kwan Ying (also known as Amy Chan ), engagement quality control reviewer ( EQCR ) for the 2013 Audit; and Mr Wong Kam Chuen (also known as Tony Wong ), EQCR for the 2014 Audit. ... Additionally, the Auditor failed to communicate the significant difficulties it encountered during the audits to REXLot's audit committee, including its failure to obtain the Articles of Association for one of REXLot’s key subsidiaries, being an important piece of audit evidence. ... Serious Breaches The AFRC found a range of serious breaches of the auditing standards in the 2013 and 2014 Audits.
FRC collaborates with IFEC to promote financial literacy on audit related topics to retail investors
FRC collaborates with IFEC to promote financial literacy on audit related topics to retail investors 8 September 2021 The Financial Reporting Council collaborates with the Investor and Financial Education Council (IFEC) to promote financial literacy to retail investors and members of the public and rolls out today a series of reader-friendly articles on audit related topics. ... The purpose of an audit is to enhance user confidence in the credibility of financial statements or to raise red flags when appropriate. ... Whereas the auditor’s opinion is about the financial statements, KAMs are about the audit. They address those matters that the auditor considers to have been of most significance in the audit.
FRC finds that an auditor failed to identify a material misstatement and to express an appropriate audit opinion
HKSA 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) prescribes the requirement to obtain sufficient appropriate audit evidence on which to base the audit opinion on the group financial statements. HKSA 700 Forming an Opinion and Reporting on Financial Statements prescribes the need for an auditor to evaluate in forming their audit opinion whether sufficient appropriate audit evidence has been obtained and whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. ... Our purpose in reporting publicly The FRC announces the adoption of reports on audit investigations and enquiries into financial reporting of listed entities: (a) to promote continuous improvement in the quality of auditing and financial reporting by all our regulatees; (b) to encourage audit committee members to consider the implications of our findings for the financial reporting and audits of their own listed entities; and (c) to maintain public confidence in the system for independent auditor regulation.