Showing 65 - 72 of 303 results
Chairman and CEO's opinion piece: Getting an audit wrong can have profound consequences for credibility
This oversight helps ensure audit quality is upheld, not assumed. ... Their choices can either strengthen audit quality — or allow it to erode over time. What audit committees should evaluate To protect investors, the focus must shift from price to quality, across four dimensions: People and leadership: Audit quality begins with people.
AFRC urges auditors and audit committees to follow Guidance Notes on Change of Auditors
AFRC urges auditors and audit committees to follow Guidance Notes on Change of Auditors 28 September 2023 The Accounting and Financial Reporting Council ( AFRC ) has been closely monitoring the phenomenon of late auditor resignations and its adverse impact on audit quality. ... The AFRC urges auditors and audit committees of listed companies to remain vigilant about the remaining issues raised in the Paper and to follow the Guidance Notes so as to uphold audit quality. Given the importance of audit quality on market confidence, the AFRC reminds PIE auditors taking on late engagements to maintain a heightened awareness of the AFRC’s expectations of them.
AFRC advocates healthy practices in auditor appointments and audit fee setting to safeguard public trust
As part of its ongoing efforts to ensure high quality of audit in Hong Kong, the AFRC sets out further steps needed to strengthen practices in auditor appointments and audit fee setting. ... In particular, audit committees have an essential part to play in the recognition of high audit quality as key to the trustworthiness of financial reporting. Dr David Sun, Chairman of the AFRC, said, “As guardians of market integrity, we are committed to advancing practices that enhance audit quality and bolster public trust.
AFRC issues its first Report on the Analysis of the PIE Audit Market in Hong Kong
Ms Tracy Wong, Acting Head, Policy, Registration and Oversight says, “Audit quality would be compromised if audit fees are not commensurate with the time, effort, and quality of an auditor’s work. ... 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.
FRC Investigates Victory City Financial Statements and Deloitte Audit
FRC Investigates Victory City Financial Statements and Deloitte Audit 19 March 2021 The FRC today announces the initiation of: (i) An enquiry into the financial statements of Victory City International Holdings Limited ( Victory City ) for the year to 31 March 2020 ( Annual Accounts ) and six months to 30 September 2020 ( Interim Accounts ); and (ii) An investigation into the audit of the Annual Accounts by Deloitte Touche Tohmatsu ( Deloitte ). ... Deloitte was the auditor of the Victory City Annual Accounts and expressed an unmodified audit opinion on them. Deloitte also expressed an unmodified review conclusion on the Interim Accounts. ... The FRC has initiated the enquiry into the Annual Accounts and Interim Accounts and the investigation into the audit of the Annual Accounts, taking into account that trading in Victory City’s shares is continuing, because it is in the interest of the shareholders of Victory City and of the investing public to address public questions and uncertainty about: Whether and if so to what extent the Annual Accounts and Interim Accounts are materially misstated with respect to unrecorded borrowings; and Whether the audit of the Annual Accounts has been conducted in accordance with the relevant auditing standards.
AFRC reprimands BOFA CPA Limited for improperly backdating audit working papers and imposes a pecuniary penalty
AFRC reprimands BOFA CPA Limited for improperly backdating audit working papers and imposes a pecuniary penalty 16 December 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned BOFA CPA Limited ( BOFA ) 1 for improperly backdating audit working papers in two audit engagements, amounting to CPA misconduct and FR misconduct. ... Specifically, the AFRC took into account the following: the misconduct was serious, involving backdating of audit documentation across both inspected audit engagements, which could have undermined public confidence in the profession; there was, however, no evidence to suggest that the misconduct led to audit deficiencies or material misstatements in the financial statements; the engagement partner concerned, who was the sole practising director, quality control system responsible person and shareholder of BOFA at the relevant time of the misconduct, has since left the practice and is no longer involved in BOFA’s business; BOFA implemented remedial measures as directed by the AFRC and as recommended by an external consultant within the required timeframe, and voluntarily refrained from accepting any new PIE engagements whilst remediation was ongoing; and BOFA has clean disciplinary records with the HKICPA and the AFRC. ... The integrity of audit documentation is not merely a technical requirement, but a cornerstone of audit quality and public trust.
AFRC reprimands BDO Limited and two others for breaches of multiple auditing standards, imposes fines totalling HK$455,000 and gives directions for additional CPD
AFRC reprimands BDO Limited and two others for breaches of multiple auditing standards, imposes fines totalling HK$455,000 and gives directions for additional CPD 21 August 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE auditor and two individuals for multiple breaches of auditing standards in relation to the audit of a former Hong Kong listed company, Vestate Group Holdings Limited (in Liquidation) ( Company ), 1 and its subsidiaries (collectively, Group ) for the year ended 31 March 2018 ( 2018 Audit ): BDO Limited (registration number: M0200) ( BDO ); Mr Alfred Lee ( Lee ), engagement partner for the 2018 Audit (together with BDO, Auditor ); and Mr Pak Tak Lun Amos ( Pak ), engagement quality control reviewer for the 2018 Audit. ... This case primarily involved deficient audit work on the impairment assessment of the Group’s point-of-sale and e-commerce payment processing business ( E-Business ) in the 2018 Audit. ... As a result, the AFRC determined that the Auditor had failed to properly carry out the 2018 Audit to obtain sufficient and appropriate audit evidence to support the reasonableness of the impairment assessment.
Chairman's remark at Signing Ceremony of MOU on Cooperation in Audit Regulation between Supervision and Evaluation Bureau of Ministry of Finance and Financial Reporting Council (Chinese Version Only)
Chairman's remark at Signing Ceremony of MOU on Cooperation in Audit Regulation between Supervision and Evaluation Bureau of Ministry of Finance and Financial Reporting Council (Chinese Version Only) 21 May 2019 尊敬的劉怡翔局長、郜進興局長、宋瑋部長、各位來賓、各位傳媒朋友: 歡迎各位今天出席中華人民共和國，財政部監督評價局與香港特別行政區財務匯報局，簽署審計監管合作備忘錄的儀式，共同見證我們雙方在審計監管的全面合作並開展新一頁。