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Accounting and Financial Reporting Council
Find a PIE Auditor The register of registered PIE auditors is published by the AFRC for the purpose of enabling the public to ascertain whether they are dealing with a PIE auditor registered with the AFRC or a registered responsible person of such a PIE auditor and to ascertain their particulars. ... The AFRC also registers local auditors as Public Interest Entity (PIE) auditors and recognises eligible non-Hong Kong auditors as PIE auditors.
FRC Welcomes the Passage of Financial Reporting Council (Amendment) Bill 2018
When the Bill takes effect the FRC will become Hong Kong’s only independent auditor regulator, vested with direct powers of inspection, investigation, as well as discipline concerning auditors of listed entities. The FRC will also be overseeing the performance of the Hong Kong Institute of Certified Public Accountants of their functions for registration; standards in professional ethics, auditing and assurance; and continuing professional development requirements in relation to auditors of listed entities. ... With a market capitalisation of over HK$30 trillion and over 2,200 listed entities, Hong Kong needs an independent auditor regulatory regime that will help bridge the long due gap of investor protection and further strengthen Hong Kong’s reputation as a competitive international financial centre.”
Audit Focus - Importance of effective audit planning
Ms Janey Lai, Head of Inspection, stresses acutely, “Our 2020-22 inspection results reveal that many auditors underestimated the significance of effective audit planning. Engagements for which auditors failed to allocate sufficient time and resources to planning were more prone to significant audit deficiencies and poor audit quality. ... It is therefore imperative for management and audit committees to engage auditors earlier and develop a comprehensive audit plan.”
Completed investigation
The FRC found that the auditor, the engagement partner and the engagement quality control reviewer failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audits in relation to (a) assets and liabilities held for distribution to owners and discontinued operations; (b) impairment assessments of available-for-sale investments; (c) accounting for convertible notes; and (d) impairment assessment of loans and accounts receivable and finance leases receivable held for distribution to owners. The investigation revealed that the auditor and the engagement partner failed to properly perform the relevant audits, in relation to the above matters, in accordance with the relevant provisions of Hong Kong Standard on Auditing (HKSA) 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing , HKSA 260 (Clarified) Communication with Those Charged with Governance , HKSA 500 (Clarified) Audit Evidence , and HKSA 705 (Clarified) Modifications to the Opinion in the Independent Auditor's Report .
Completed investigation
The FRC found that the auditor, the engagement partner and the engagement quality control reviewer failed or neglected to observe, maintain or otherwise apply certain professional standards in the relevant audit in relation to (a) biological assets and prepaid land lease payments, and (b) intangible assets. The investigation revealed that the auditor and the engagement partner failed to plan and/or perform the relevant audit, in relation to the above matters, in accordance with the relevant provisions of Hong Kong Standard on Auditing ( HKSA ) 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing , HKSA 300 (Clarified) Planning an Audit of Financial Statements , HKSA 330 (Clarified) The Auditor’s Responses to Assessed Risks , HKSA 500 (Clarified) Audit Evidence and HKSA 540 (Clarified) Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.
AFRC welcomes the 2022 Annual Report of the Process Review Panel
In the 2022 review cycle, the PRP reviewed the AFRC’s work in relation to the regulation of PIE auditors including the handling of (a) 10 complaints, investigation and enquiry cases, (b) inspections of six PIE auditors and seven PIE engagements, (c) recognition applications of four overseas PIE auditors, and (d) the oversight of the Hong Kong Institute of Certified Public Accountants’ specified functions from January to December 2021 and provided constructive recommendations to the AFRC in the Report. ... Dr Kelvin Wong, Chairman of the AFRC remarked, “On behalf of the AFRC, I would like to express our heartfelt gratitude to the PRP for confirming our compliance to policy in various regulatory functions in relation to PIE auditors. The valuable recommendations made by the PRP will propel the AFRC to continue striving for the highest efficiency in its delivery of regulatory outcomes to protect the public interest.”
FAQs
FAQs General Registration Practising Certificate CPA Firm Corporate Practice Local PIE Auditor Non-Hong Kong PIE Auditor Inspection Investigation & Compliance Complaints Whistleblowing Investigations Enquiries Discipline
Frequently Asked Questions
Frequently Asked Questions General Registration Practising Certificate CPA Firm Corporate Practice Local PIE Auditor Non-Hong Kong PIE Auditor Inspection Investigation & Compliance Complaints Whistleblowing Investigations Enquiries Discipline