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AFRC Congratulates Chairman on New Role
AFRC Congratulates Chairman on New Role 14 October 2024 The Government has announced today that the Chief Executive has appointed Dr Kelvin Wong, the current Chairman of the AFRC, to a new position as Chairman of the Securities and Futures Commission.
FRC welcomes the passage of the Financial Reporting Council (Amendment) Bill 2021
The new legislation, which will take effect on a date to be appointed by the Secretary for Financial Services and the Treasury, will further enhance the independence of the regulatory regime for the accounting profession in Hong Kong.
FAQs - Investigations
We investigates all professional persons as defined in AFRCO including: PIE auditor Registered PIE auditor Recognized PIE auditor Registered responsible person of a registered PIE auditor An engagement partner; An engagement quality control reviewer; or A quality control system responsible person. Non-PIE auditor Professional person CPA Practice Unit (CPA (Practising), CPA firm, Corporate practice) 3. ... In relation to non-PIE auditors Pursuant to section 23A of the AFRCO, the AFRC may direct an investigator to carry out an investigation in relation to a non-PIE auditor where the AFRC has a reasonable cause to believe that a non-PIE auditor has or had committed a practice irregularity as defined under section 4 of the AFRCO.
AFRC emphasises the importance of adherence to registration requirements for carrying out PIE engagements
The AFRCO stipulates that PIE engagements can only be undertaken and carried out by local PIE auditors registered with the AFRC ( registered PIE auditors ) or overseas PIE auditors recognised by the AFRC. For registered PIE auditors, the AFRCO also sets out specific registration requirements for individuals acting as an engagement partner ( EP ) or an engagement quality control reviewer ( EQCR ) for PIE engagements, including the following: Any individual who is to act as an EP or an EQCR of a PIE engagement must be a registered EP or a registered EQCR (as the case may be) of the particular registered PIE auditor concerned, before undertaking any activities in such capacities; and A registered PIE auditor must not authorise any person who is not a registered EP or a registered EQCR of that particular registered PIE auditor to carry out any activities in such capacities. ... We urge PIE auditors and relevant personnel to closely follow the AFRC’s Guide for the Registration of PIE Auditors which provides detailed criteria and procedures for registration and renewal applications for registered PIE auditors.
AFRC issues its first Report on the Analysis of the PIE Audit Market in Hong Kong
As at 30 June 2023, the vacancy rate for associates and senior associates was highest in Category C PIE auditors at 25.5% and 24.2% respectively, followed by Category B PIE auditors at 16.1% and 16.9% respectively, and 5.8% and 4.5% respectively for Category A PIE auditors. 2 The average attrition rate for associates and senior associates in different categories of local PIE auditors ranged from 33.2% to 36.2% and 22.1% to 39.0% respectively in the year ended 30 June 2023. ... When asked how frequently audit teams of PIE auditors experienced fee pressure that may compromise audit quality in 2023, 33.3% of Category A PIE auditors, 47.6% of Category B PIE auditors, and 52.9% of Category C PIE auditors experienced such pressure. ... This could allow PIE auditors to leverage a diverse talent pool and enhance audit quality.
Information required for inspection
Information required for inspection An auditor will be notified in writing if it is selected for inspection. ... The auditor should provide the required information to the AFRC by the specified date(s) in the notification. ... Last update: March 2026 Inspection of PIE auditors Click to view Inspection of non-PIE auditors Click to view Standalone Anti-money Laundering and Counter-terrorist Financing Compliance Monitoring Inspection Click to view
FRC and the HKICPA signed a Statement of Protocol on Oversight Arrangements
Under the Amendment Ordinance, the FRC is vested with direct powers of inspection, investigation, discipline concerning auditors of Public Interest Entities (PIE) and recognition of overseas PIE auditors, and powers of oversight of the performance of the HKICPA in relation to registration of, setting of continuing professional development (CPD) requirements, and setting of standards on professional ethics, auditing and assurance for registered PIE auditors. ... Under the Statement of Protocol, the FRC will have access to information in relation to the HKICPA’s performance of the registration of PIE auditors, matters concerning the setting of CPD requirements for PIE auditors and the setting of standards on professional ethics, auditing and assurance for registered PIE auditors. ... Dr Kelvin Wong, Chairman of the FRC remarked, “The Statement signed today will facilitate the FRC in discharging our statutory oversight duty effectively as the independent auditor regulator of Hong Kong.
Registration
Issuance of practising certificates Registration of firm names and firms Registration of corporate practices Registration of local auditors as public interest entity (PIE) auditors Recognition of non-Hong Kong auditors as PIE auditors For an understanding of the legal framework under the AFRCO and the registration function of the AFRC, please refer to the details set out in the following policy statements: Policy Statement for the Issuance of Practising Certificates Policy Statement for the Registration of Firm Names and Firms Policy Statement for the Registration of Corporate Practices Policy Statement for the Registration of Local PIE Auditors Policy Statement for the Recognition of Non-Hong Kong Auditors Workflow Workflow Assess your eligibility Read the relevant Registration Guide to understand the registration criteria Prepare certified copies of all supporting documents Submit your application Submit your application by completing your application form, uploading the certified copies of supporting documents and paying non-refundable application fees online Respond promptly to enquiries from the AFRC Update your practising information Obtain the AFRC’s approval before the following changes take effect: Addition of responsible persons to a registered PIE auditor Amendments to Articles of Association of a corporate practice Change of name of a CPA firm or corporate practice Update the AFRC by submitting change notification and certified copies of supporting documents within 14 days of any change in practising information such as: Name of practice Registered office address Email address Contact phone number Composition of CPA firms or corporate practices Renew your registration Renew registration annually during the following renewal periods, otherwise it will expire by 31 December: Practising certificate, CPA firm and corporate practice: 1 November to 15 December PIE auditor: 1 October to 16 November Cancel your registration Submit cancellation request with certified copies of supporting documents