Search

AFRC publishes Inspection Insights and an explanatory video on the inspection of non-PIE practice units to drive continuous improvements in audit quality

Our Insights is valuable to auditors and should enable them to achieve high audit quality when they learn and improve their systems of quality management ( SoQM ) and key aspects of the audit. ... Ms Lai stressed, “We urge auditors to benefit from our Insights by thoroughly reviewing it and taking our recommended actions to address their identified deficiencies and relevant issues. ... At the same time, we will also maintain our risk-based approach and initiate special inspections on PIE auditors with unsatisfactory inspection results to uphold audit quality, so as to effectively protect the public interest.”

AFRC takes first ever disciplinary actions against multiple practice units for non-compliance with anti-money laundering requirements and imposes fines totalling HK$290,000

Disciplinary decision in relation to Prism During the 2023 inspection of Prism, a Public Interest Entity ( PIE ) auditor, the AFRC identified multiple breaches of the AML Guidelines by the firm in the course of taking up various new engagements for carrying out certain specified services. ... In deciding the appropriate disciplinary sanctions, the AFRC has considered all relevant circumstances, including the nature and extent of non-compliance, the fact that Prism is a PIE auditor, the relatively limited frequency, duration and impact of the misconduct. ... For details of the decisions regarding DH&C and Ho, please refer to the Statement of Disciplinary Action . 1 Corporate practice and PIE auditor registration number: M0607.

Court of Appeal dismisses applications of Chiang Sham Lam Anthony and Anthony S. L. Chiang & Co. for leave to appeal and stay of execution

These sanctions stemmed from the Regulatees’ serious breaches of fundamental auditor independence requirements over 22 years, as well as failure to maintain an effective quality control system to ensure independence. ... Commenting on the decision, Ms Hester Leung, Head of Discipline, said, “The Court of Appeal’s decision affirms that the AFRC’s disciplinary decision was firmly grounded and fully justified. Auditor independence is the cornerstone of audit quality, and the AFRC will continue to take decisive action to uphold the integrity of the profession.”

Speeches and Presentations

Speeches and Presentations Presentation on FRC remit and power to Commercial Crime Bureau 12 August 2021 Chairman's Presentation at the forum jointly organised by the Society of Chinese Accountants and Auditors, Accounting Development Foundation and Business School of HKUST 18 June 2021 CEO's Speech at LegCo Panel on Financial Affairs on 2021-22 budget 1 March 2021 Chairman’s Speech at LegCo Panel on Financial Affairs on 2021-22 budget (Chinese Version Only) 1 March 2021 Chinese New Year greetings for HKiNEDA 26 February 2021 Chairman Dr Kelvin Wong’s presentation on Getting Ready for 2020 Transitions 15 October 2019

Speeches and Presentations

Speeches and Presentations CEO Mr Marek Grabowski's presentation - Framework for Independent Regulation of the Accounting Profession in Hong Kong 24 November 2021 Chairman Dr Kelvin Wong’s presentation at Society of Chinese Accountants and Auditors’ CPD Carnival 20 November 2021 Presentation on Annual Investigation and Compliance Report 27 October 2021 Chairman Dr Kelvin Wong’s presentation at Hong Kong Institute of Directors’ (HKIoD) Directors’ Symposium 2021 15 September 2021 CEO Mr Marek Grabowski’s presentation – Getting more serious about ESG compliance 15 September 2021 Chairman Dr Kelvin Wong’s remarks to summer interns 24 August 2021

AFRC reprimands and fines Deloitte and two engagement partners over HK$1.9 million for multiple audit deficiencies in relation to two companies formerly listed in Hong Kong

Deloitte and Mak audited the financial information of the Sound Global Group for the financial years 2012 and 2013. The auditors had identified that there were risks of material misstatement in relation to revenue and bank balances for both the 2012 and 2013 audits. ... External confirmations must be returned directly from the requested third parties to the auditors to ensure their reliability as audit evidence. The AFRC emphasises that auditors must maintain professional skepticism while performing audit procedures relating to revenue and external confirmations.”

AFRC Hosts Landmark Regional Regulatory Forum 2025

The panel discussed the issue of auditor rotation, with Prof. Yuen Teen Mak noting that it is a blunt instrument for safeguarding auditor independence and needs to be complemented by other measures to improve trust and audit quality. ... Dr Kelvin Wong stressed that high-quality audits are driven by an auditor’s intrinsic motivation—“you have to sincerely love it”—rather than external motivations like monetary rewards. Mr Charles Lip added that additional value auditors bring include communicating uncomfortable messages and providing actionable insights on governance, internal controls, and emerging risks.

Press Releases

Press Releases AFRC in deepest mourning of the passing of Mr Jiang Zemin, Former President of the People’s Republic of China 6 December 2022 AFRC issues 2022 Interim Inspection Report and Report on Oversight of HKICPA regulatory functions 15 November 2022 AFRC’s follow-up survey on the implementation progress of the new and revised quality management standards 10 November 2022 AFRC issues an open letter to express its growing concern over late auditor resignations 27 October 2022 AFRC issues 2022 Annual Investigation and Compliance Report 20 October 2022 AFRC welcomes the Chief Executive’s 2022 Policy Address 19 October 2022

Search across website resources