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Press Releases
Press Releases The importance of regulatory synergy in upholding financial reporting and audit quality 28 August 2024 Regulatory Collaboration Enhances Effectiveness in Audit Regulation 2 August 2024 AFRC welcomes the appointments to the Advisory Committee of the Accounting and Financial Reporting Council and expresses heartfelt gratitude to retiring member 26 July 2024 AFRC expects full compliance by auditors with relevant laws and regulations 16 July 2024 AFRC welcomes new appointments and reappointments to the Financial Reporting Review Panel and expresses heartfelt gratitude to retiring members 12 July 2024 2023 Annual Inspection Report emphasises the pivotal roles of the firm’s leadership in upholding audit quality and reinforces the importance of continuous learning as a key driver of improvement 11 July 2024
AFRC reprimands and imposes pecuniary penalty of HK$80,000 against CCTH CPA Limited for delay in fulfilling a requirement issued by the AFRC
These corrective actions were designed to ensure CCTH’s compliance with fundamental auditing standards, including evaluating whether the information provided by listed companies is sufficiently reliable, which are key to quality audits. ... Inspections by the AFRC play a key role in monitoring and improving the quality of audits, and contribute to the protection of the interests of investors and the wider public. ... The AFRC’s inspection function plays a pivotal role in monitoring and upholding audit quality. An inspection focuses on how a regulatee conducted its audit engagements and on the effectiveness of its quality control system to determine whether the applicable professional standards and legal and regulatory requirements have been complied with.
Press Releases
Press Releases AFRC welcomes the Government’s reappointment/appointment of Non-Executive Directors and an Executive Director to act as the CEO 29 September 2023 Appointments to Accounting and Financial Reporting Review Tribunal 29 September 2023 Appointments to Accounting and Financial Reporting Council 29 September 2023 AFRC urges auditors and audit committees to follow Guidance Notes on Change of Auditors 28 September 2023 AFRC holds Briefing on its 2022 Annual Inspection Report to urge Quality Control System Responsible Persons of registered PIE auditors to enhance audit quality 27 September 2023 AFRC Investigation Report shows auditors’ inadequate response to increasing incidence of fraud in financial statements 4 September 2023
AFRC welcomes the Chief Executive’s 2023 Policy Address
Ms Janey Lai, Acting CEO of the AFRC said, “The anticipated increase in the market activities such as IPOs and stock market transactions arising from the Government’s initiatives needs to be underpinned by effective regulatory policies that uphold audit quality and the quality of financial reporting. To this end, the AFRC will ensure that our policies are conducive to enhancing audit quality and garnering public trust and confidence in financial reporting and the integrity of the financial market.”
AFRC reprimands Centurion ZD CPA Limited, Chan Kam Fuk and Ling Chun Kwok for serious breaches of professional standards, imposes pecuniary penalties totalling HK$700,000 and cancels the practising certificate of Chan Kam Fuk for 12 months
To safeguard audit quality of the regulated market and protect the public interest, the AFRC will not hesitate to hold to account those guilty of misconduct.” ... Auditors play a key role in ensuring quality financial reporting. An engagement partner is responsible for the overall quality of the audit engagement, including taking responsibility for the performance of the audit engagement in compliance with professional standards. ... Mr Marek Grabowski, CEO of the AFRC, said, “Quality audits enhance public confidence in Hong Kong’s capital market.
Inspection
Inspection Overview The AFRC performs inspections to promote audit quality and oversee compliance with anti-money laundering and counter-terrorist financing regulations. Under the Accounting and Financial Reporting Council Ordinance (AFRCO), the AFRC has the power to direct an inspector to carry out an inspection in relation to: PIE engagements completed by a PIE auditor A practice unit For an understanding of the legal framework under the AFRCO and the inspection function of the AFRC, please refer to the details set out in the following policy statements: Policy Statement for Inspection of PIE Auditors with respect to PIE Engagements Policy Statement for Inspection of Practice Units with respect to engagements other than PIE Engagements Policy Statement for Inspection of Practice Units with respect to compliance with Anti-Money Laundering and Counter-Terrorist Financing Requirements Outline of the AFRC’s Inspection Process for PIE Auditors Outline of the AFRC’s Inspection Process for practice units that are not PIE auditors Featured 【Report Digest】Navigating the 2025 Year-End Audit - Key Reminders for Auditors In October 2025, the AFRC released the report “Audit Focus: 2025 Year-end Audit”, providing essential reminders for auditors to ensure the quality of year-end audits. 【AFRC Connect】EP1: How Important is Audit Risk Assessment? Risk assessment is the cornerstone of effective audit planning, which underpins quality audits.
Bogus Accountants
Bogus Accountants Since 1 October 2022, the AFRC has dedicated itself to raising audit quality in Hong Kong and to promote the development of the accounting profession. ... It would be a quality issue concerning the standard of audit services provided. A certified public accountant (practising) who signs off audited accounts “indiscriminately” without due regard to audit quality may be guilty of misconduct under the AFRCO.
AFRC sets out Strategic Priorities for 2025-2027
The AFRC's strategic priorities for 2025-2027 are based on four key pillars: Regulation : Upholding the quality of financial reporting and audit, thereby safeguarding stakeholder and public interests. Governance : Cultivating a healthy environment based on high-quality financial reporting and audit through robust governance. ... David Sun, Chairman of the AFRC, stated, "In today’s dynamic world, where the accounting profession faces unprecedented challenges, our unwavering mission to protect the public interest drives our strategic priorities of upholding quality, maintaining trust, and fostering development.