Showing 57 - 64 of 282 results
FRC concludes that a listed entity failed to recognise an impairment loss on equity investments and its auditor failed to identify the misstatements
FRC concludes that a listed entity failed to recognise an impairment loss on equity investments and its auditor failed to identify the misstatements 17 December 2021 The FRC adopted an enquiry report and an investigation report, which found that: a listed entity ( Listed Entity ) failed to recognise an impairment loss on the available-for-sale equity investments ( the Investments ) in the consolidated financial statements for the year ended 31 December 2016 ( 2016 Financial Statements ); and the auditor ( the Auditor ) of the Listed Entity failed to identify the material misstatements in relation to the impairment of the Investments in the 2016 Financial Statements. ... The audit quality failure of the Auditor The Auditor failed to identify the above material misstatement and therefore issued an inappropriate unmodified audit opinion. ... It also requires the auditor to obtain an understanding of the applicable financial reporting framework.
AFRC welcomes the Government’s appointments to the Process Review Panel
AFRC welcomes the Government’s appointments to the Process Review Panel 27 December 2022 The Accounting Financial Reporting Council ( AFRC ) welcomes the Government’s reappointments to the Process Review Panel ( PRP ). ... Please click here for the Government’s press release about the appointments.”
Disciplinary Sanctions
An overview of the types of sanctions applicable to the two categories of regulatees is set out below: PIE auditors and registered responsible persons Professional persons (i.e. CPAs and practice units) Remedial action Reprimand (private / public) Pecuniary penalty (per FR misconduct: not exceeding HK$10,000,000 or 3 times profit / loss, whichever is higher) Registration or recognition Imposition of a condition Suspension Revocation Prohibition from application Removal of name from the list of registered responsible persons Reprimand (private / public) Pecuniary penalty (per CPA misconduct: not exceeding HK$500,000) Registration Suspension Revocation Practising certificate Cancellation Non-issuance Investigation costs and expenses Note: In relation to a PIE engagement completed before 1 October 2019, the auditor or the reporting accountant concerned is to be regarded as a professional person and the AFRC can impose sanctions that are applicable to professional persons in such cases. Relevant Guidance Materials Sanctions Policy for PIE Auditors and Registered Responsible Persons Sanctions Policy for Professional Persons Guidelines for Exercising the Power to Impose a Pecuniary Penalty for PIE Auditors and Registered Responsible Persons Guidelines for Exercising the Power to Impose a Pecuniary Penalty for Professional Persons
Chiang & Co. for serious violations of fundamental auditor independence requirements
The AFRC found that from 1999 to 2021, Chiang and ASLC & Co audited the Companies’ financial statements whilst Chiang held various roles, including director and company secretary, and had direct financial interests, in the Companies over various periods. The appointment of ASLC & Co as the Companies’ auditor was inconsistent with company law requirements. 3 Further, Chiang’s wife and mother were also directors and had direct financial interests in the Companies over various periods. ... Upholding auditor’s independence is essential to maintaining public trust in audits and the reliability of financial reporting. ... Chiang was at all material times the sole practitioner of ASLC & Co. 3 Section 393 of the Companies Ordinance (Cap. 622) ( Companies Ordinance ) prohibits an officer (i.e. a director, manager or company secretary) of a company from being appointed as an auditor of that company. 4 Sections 3B(1)(c) and 3B(1)(h) of the AFRCO. 5 Under section 37CA(2)(b) of the AFRCO, the maximum pecuniary penalty for a CPA misconduct is HK$500,000.
AFRC holds Briefing on its 2022 Annual Inspection Report to urge Quality Control System Responsible Persons of registered PIE auditors to enhance audit quality
AFRC holds Briefing on its 2022 Annual Inspection Report to urge Quality Control System Responsible Persons of registered PIE auditors to enhance audit quality 27 September 2023 To urge quality control system responsible persons ( QCSRP s ) of the registered PIE auditors to duly discharge their responsibilities in enhancing audit quality, the Accounting and Financial Reporting Council ( AFRC ) held a briefing session on its 2022 Annual Inspection Report on 22 September 2023, which was attended by over 40 target participants. ... It also highlighted the 2023 inspection focus and our expectations on auditors. Ms Lai explained, “The AFRC consistently applies the regulatory principle of proportionality and risk-based inspection approach to drive high audit quality, including conducting specific scope inspections on PIE auditors and proactive monitoring on malpractice in the market. ... This will allow us to ensure the PIE auditors have paid immediate attention to the audit quality of their engagements.”
AFRC acknowledges the contributions of retiring Non-Executive Directors (NEDs) and welcomes the Government's appointment and reappointment of NEDs
AFRC acknowledges the contributions of retiring Non-Executive Directors (NEDs) and welcomes the Government's appointment and reappointment of NEDs 26 September 2025 The Accounting and Financial Reporting Council ( AFRC ) welcomes the Government’s appointment of three Non-Executive Directors (NEDs) and the re-appointment of six NEDs. The AFRC also extends its sincere appreciation to the five retiring NonExecutive Directors — Mr Eugene Fung Ting-sek, Mr Stephen Lee Hoi-yin, Ms Rosita Lee Pui-shan, Mr Francis Siu Wai-keung, and Mr Peter Wan Kam-to — for their distinguished service and valuable guidance. New appointment of NEDs for a term of two years, from 1 October 2025 to 30 September 2027: Ms Clara Chan Yuen-shan Ms Cindi Hui Ming-ming Mr Charles Lip Sai-wo Re-appointment of NEDs for a term of one year, from 1 October 2025 to 30 September 2026: Mr Roger Thomas Best Mr Stephen Hung Wan-shun Ms Miranda Kwok Pui-fong Re-appointment of NEDs for a term of two years, from 1 October 2025 to 30 September 2027: Mr Andrew Fung Hau-chung Dr James C Lin Mr Edward Yuen Siu-bun Commenting on the appointments, Ms Janey Lai, CEO of the AFRC, said, “The Board’s wealth of expertise and dedication will undoubtedly strengthen the Council’s efforts and steer us towards continued success. ... For the Government press release in relation to the details of the aforesaid appointment and reappointment, please click here .
Forms
Forms Registration Practice Units Non-Hong Kong PIE Auditors Inspection Inspection Investigation and Compliance Investigation and Compliance Registration Practice Units Non-Hong Kong PIE Auditors Inspection Inspection Investigation and Compliance Investigation and Compliance Registration Practice Units Proforma for Testimonial (Form PC-PT) [SAMPLE only] Letter of Consent from the Landlord / Leaseholder [SAMPLE only] Certification of Insurance by the Insurance Broker Registration Non-Hong Kong PIE Auditors Initial Application Renewal Application Change of Particulars Initial Application Initial Application Renewal Application Change of Particulars Form A – Information of the Overseas Entity Form B – Information of the Overseas Auditor Form B1 – Members of Board/Committee Declaration of Good Repute (Form B-GR) Form C – Information of the Overseas Entity Form D – Information of the Overseas Auditor Form D1 – Members of Board/Committee Declaration of Good Repute (Form D-GR) Notification Form of Change of Particulars – Overseas Auditors (Form NCP-ENG) Notification Form of Change of Particulars – Mainland China Auditors (Form NCP-CHI) (available in Chinese only) Inspection Notification Form of Change of Auditor Investigation and Compliance Complaints (pdf form) Whistleblowing (pdf form) Complaints (online form) Whistleblowing (online form)
FRC expresses profound gratitude to the retiring Non-Executive Directors (NEDs) and welcomes the Government’s Appointment/Reappointment of NEDs
FRC expresses profound gratitude to the retiring Non-Executive Directors (NEDs) and welcomes the Government’s Appointment/Reappointment of NEDs 30 September 2021 The Financial Reporting Council (FRC) expresses profound gratitude to the two retiring Non-Executive Directors Mr Wong Kai-man and Dr Lin Yong whose appointments will end on 30 September 2021. At the same time, the FRC welcomes Chief Executive’s reappointment of the Chairman and 8 NEDs and the appointment of a new NED for a term of 2 years from 1 October 2021 to 30 September 2023. ... For the Government press release in relation to the reappointment and appointment, please click here Annex 1 Composition of the Board of FRC Chairman 1.