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AFRC highlights the importance of continuous professional development in ensuring audit quality and managing talent
The article, referencing relevant empirical research and analysing the current trends in the accounting profession, highlights the link between CPD and audit quality in the context of the need for auditors to acquire new skills and the ongoing transformation of the audit profession. ... As CPD is an important element for future-proofing the accounting profession, the AFRC sets out expectations for auditors and firms in relation to CPD compliance. At an individual level, the AFRC expects auditors to comply with CPD requirements, adopt a mindset of lifelong learning, and devote effort to acquiring knowledge and skills essential to pursuing their professional development.
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
Centurion and Chan failed in their respective role as the independent auditor to obtain reasonable assurance on whether the 2016 Financial Statements as a whole were free from material misstatement. ... The multiple breaches identified stemmed from the auditor’s failure to exercise professional skepticism, a necessary attitude which should be adopted throughout an audit engagement. ... The AFRC also urges auditors to pay particular attention to the common areas of audit deficiencies identified by the AFRC in its 2022 Annual Inspection Report and 2022 Annual Investigation and Compliance Report , including the importance of (i) exercising professional skepticism in the context of asset impairment assessment, and (ii) adequately evaluating the work of auditors’ experts, and to improve the audit quality accordingly.
Overview of the non-public interest entity audit market
The Overview provides information on the market share of the non-public interest entity ( non-PIE ) audit market, the workload of non-PIE auditors, and the AFRC’s expectations on the provision of high-quality audit services by practice units ( PUs ). ... Category D PUs came second with 48,557 audit clients (17%), while registered public interest entity auditors (Category A, B and C PUs) served a total of 45,624 audit clients (16%) in 2022. ... The AFRC will continue to monitor nonPIE auditors. This is to promote orderly market operations and safeguard audit quality.
Associate Director / Manager (Registration)
Policy, Registration and Oversight Associate Director / Manager (Registration) Responsibilities Evaluate and process applications for the issuance and renewal of practising certificates for certified public accountants ( CPA ), and for the registration of audit firms, corporate practices and Public Interest Entity ( PIE ) auditors. Lead or support the continuous enhancement of the AFRC's risk-based auditor registration policies, drawing on market research and regulatory developments in Hong Kong and internationally.
FRC joins IOSCO as an affiliate member
As Hong Kong’s independent regulator of auditors of listed entities, the FRC plays a unique and pivotal role in the regulation of the securities market of Hong Kong. ... Dr Kelvin Wong, Chairman of the FRC, said, “As the independent auditor regulator of Hong Kong, one of the leading capital markets in the world, the FRC recognises the importance of the global regulatory partners working closely together for the benefit of investors both globally and locally.
FRC’s Briefing at LegCo Panel on Financial Affairs on 2021-22 budget
At the briefing, Dr Kelvin Wong, Chairman of the FRC shared with Members how the FRC has contributed to the protection of investors and public interest through the effective performance of its expanded functions since the commencement of the new auditor regulatory regime on 1 October 2019. Mr Marek Grabowski, CEO of the FRC, presented the budget and explained that in 2021-22 the FRC would be consolidating its rapid growth in 2019-21, which had been necessary to transform the FRC into Hong Kong’s full-fledged independent auditor regulator. The budget recognised the need to optimise fiscal discipline in the current economic circumstances, but the FRC would still be able to deliver all of its statutory functions effectively.
FRC and The Exchange to strengthen collaboration
FRC and The Exchange to strengthen collaboration 8 June 2021 The Financial Reporting Council (FRC) and the Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today signed a new Memorandum of Understanding (MoU) to further strengthen collaboration between the two organisations, in ensuring the upholding of quality financial reporting by listed entities and their auditors. The new MoU replaces the one signed in 2007 and facilitates efficient and effective collaboration between the FRC and the Exchange in respect of the Financial Reporting Council Ordinance’s regulation of public interest entity auditors and the compliance by listed entities with regulatory requirements in financial reporting.
AFRC’s Briefing at LegCo Panel on Financial Affairs on 2023-24 budget
Dr Wong remarked, “With 115 passionate and competent staff, the AFRC has been able to overcome budget constraints and effectively discharge regulatory functions covering both Public Interest Entity (PIE) auditors and non-PIE practice units.” ... However, due to (i) fluctuation in the securities market turnover; (ii) the lower-than-expected PIE levy income from the PIE auditors; and (iii) the depletion of the Grant by the end of March 2024, the AFRC estimates an operating deficit of $77 million for 2023-24.