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AFRC issues a follow-up open letter to reiterate expectations on auditor changes
“Corporate governance considerations” is misused as a reason for auditor resignation. Premature announcements regarding the appointment of an incoming auditor. ... Ms Mary Leung, Head of Policy, Registration and Oversight said, “Audit committees have significant responsibilities in overseeing the financial reporting and audit process, as well as in the appointment of auditors — this latter role is even more important when there is a late auditor resignation. ... This should be achieved through persistent efforts to resolve outstanding audit issues as well as open and honest discussions with both incoming and outgoing auditors. We also urge them to follow AFRC’s 2021 Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors , in particular on disclosure of circumstances leading to auditors’ resignations, and selection of incoming auditors.”
AFRC expects full compliance by auditors with relevant laws and regulations
AFRC expects full compliance by auditors with relevant laws and regulations 16 July 2024 The Accounting and Financial Reporting Council ( AFRC ) stresses that as the independent regulator of the accounting profession in Hong Kong, it expects all audit firms and their personnel to fulfil the fundamental principle of professional behaviour to comply with all relevant laws and regulations under paragraphs 110.1 A1(e) and R115.1(a) of the Code of Ethics for Professional Accountants. It has come to the attention of the AFRC that in a recent decision notice, the Supervision and Evaluation Bureau of the Ministry of Finance of the People’s Republic of China has imposed a sanction on an individual certified public accountant in the Mainland for having accepted audit work from a Hong Kong PIE auditor in respect of certain audits of Mainland enterprises listed in Hong Kong on his own account rather than through the Mainland public accounting firm to which he belonged as required under Mainland law. ... In addition, under the AFRC regime, in considering the applications of registration of PIE auditors and their renewals, the AFRC may have regard to all information in its possession, including the compliance records of an applicant.
AFRC reminds PIE auditors to be prepared for undertaking PIE engagements
AFRC reminds PIE auditors to be prepared for undertaking PIE engagements 28 June 2024 The AFRC today has published an article titled Reminder to PIE auditors: Be prepared for undertaking PIE engagements . It is primarily targeted at registered public interest entity ( PIE ) auditors without PIE engagement and practice units which are considering registration as PIE auditors with the AFRC. ... Our reminder equally applies to those PIE auditors with PIE engagement.
AFRC expects active cooperation and full compliance by PIE auditors with the AFRC Ordinance and their self-reporting of critical incidents in a timely manner
AFRC expects active cooperation and full compliance by PIE auditors with the AFRC Ordinance and their self-reporting of critical incidents in a timely manner 7 December 2023 The Accounting and Financial Reporting Council ( AFRC ) reiterates, as the independent regulator of the accounting profession in Hong Kong, that it expects all PIE auditors and registered responsible persons to fully comply with the Accounting and Financial Reporting Council Ordinance ( AFRCO ) and report to the AFRC in a timely manner any critical incidents in relation to audit quality and the firms’ systems of quality management.
AFRC Investigation Report shows auditors’ inadequate response to increasing incidence of fraud in financial statements
AFRC Investigation Report shows auditors’ inadequate response to increasing incidence of fraud in financial statements 4 September 2023 The Accounting and Financial Reporting Council ( AFRC ) today issues its 2023 Annual Investigation and Compliance Report ( Annual I&C Report ), covering the 12 months from 1 April 2022 to 31 March 2023. ... Ms Wong continued, “Auditors have a clear responsibility to identify, assess and appropriately address fraud risks during audits of financial statements. The AFRC expects auditors to carry out their audits in strict compliance with relevant auditing standards, be familiar with the types of fraud that are relevant to financial reporting non-compliance and the conditions that may indicate they have occurred, and design audit procedures that are adequate to enable them to address identified fraud risks.”
AFRC sets out its position on documentation of an auditor’s work on “other information” included in the annual report of a listed entity
AFRC sets out its position on documentation of an auditor’s work on “other information” included in the annual report of a listed entity 28 April 2023 In a recently completed investigation referred from the Stock Exchange of Hong Kong Limited, the Accounting and Financial Reporting Council ( AFRC ) identified an improper practice regarding audit documentation relating to the work carried out by the auditor ( the Auditor ) of a listed entity ( the Listed Entity ) on other information 1 included in the Listed Entity’s annual report. ... The practice adopted by the Auditor The Auditor had obtained from management a version of documents containing other information before the date of the auditor’s report and performed the procedures on the other information. ... Accordingly, a statement included in the “Other Information” section of the auditor's report that the auditor has nothing to report might be misleading to investors reading the auditor's report.
FRC welcomes new appointments and reappointments to the Financial Reporting Review Panel and expresses sincere gratitude to retiring members
Please refer to Annex 1 for the list of newly appointed, reappointed and retiring FRRP convenors and members. ... For the Government press release in relation to the appointment and reappointment of the FRRP, please click here Annex 1 Newly appointed members 1. ... Ms CHHOA Peck-lim, Bella Re-appointed convenors 1. Mr Mark Douglas JOHNSON 2.
FRC welcomes the establishment of the Advisory Committee of the Accounting and Financial Reporting Council and the appointments of its Members
FRC welcomes the establishment of the Advisory Committee of the Accounting and Financial Reporting Council and the appointments of its Members 29 July 2022 Financial Reporting Council ( FRC ) welcomes the establishment of the Advisory Committee ( ADC ) of the Accounting and Financial Reporting Council ( AFRC ) and the appointments of 12 members by the HKSAR Government today. In addition to the members appointed by the Financial Secretary, the ADC also consists of the AFRC Chairman Dr Kelvin Wong and CEO Mr Marek Grabowski. ... For the Government press release in relation to the appointment of the ADC, please click here .