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Completed investigation on the audit of the consolidated financial statements of a listed entity for the year ended 31 March 2017
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 the corresponding figures on inventories and revenue. The investigation revealed that the auditor and the engagement partner failed to properly perform the relevant audit, in relation to the above matters, in accordance with the relevant provisions of Hong Kong Standard on Auditing (HKSA) 500 Audit Evidence , HKSA 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) and HKSA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements .
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 an option to issue convertible bonds to a subscriber (Option) . The investigation revealed that the auditor and the engagement partner failed to perform the relevant audit, in relation to the Option, in accordance with the relevant provisions of HKSA 200 (Clarified) Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Hong Kong Standards on Auditing ; HKSA 500 (Clarified) Audit Evidence ; HKSA 540 (Clarified) Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures and HKSA 550 (Clarified) Related Parties .
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) the purchase price allocation of a business combination; and (b) the measurement of the acquisitiondate fair value of the consideration shares issued for the business combination. The investigation revealed that the auditor and the engagement partner failed to properly 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 500 (Clarified) Audit Evidence and HKSA 540 (Clarified) Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures .
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 the impairment assessment of the listed entity’s interest in an associate. The investigation revealed that the auditor and the engagement partner failed to properly perform the relevant audit in relation to the estimation of the recoverable amount of the interest in an associate 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 500 (Clarified) Audit Evidence , and HKSA 540 (Clarified) Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures .
FRC Initiates Investigation into Audits of Convoy for 2017 to 2019
The financial statements for each year and the auditor’s reports issued by Zhonghui Anda CPA Limited ( Zhonghui ) were published by Convoy on 18 February 2021. ... Each opinion is subject to multiple exceptions, in relation to which Zhonghui indicates that it was unable to obtain the evidence necessary to form an unqualified opinion. An auditor is not permitted to qualify the audit opinion if the unknown effects of such exceptions could be both material and pervasive. Instead they are required to withdraw from the audit or to state in the auditor’s report that they do not express an opinion on the Financial Statements (i.e. to disclaim their opinion).
Press Releases
Press Releases FRC publishes articles with IFEC to educate retail investors 17 December 2021 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 FRC issues Guidelines for Effective Audit Committee and Report on Assessment of the HKICPA’s Performance of the Specified Functions 16 December 2021 FRC completes an investigation relating to an auditor’s failure to obtain necessary evidence to conclude that an associate was not impaired 14 December 2021 FRC launches new Whistleblowing Policy 1 December 2021 FRC and ICAC joint operation against suspected misconduct and bribery 22 November 2021
Press Releases
Press Releases AFRC’s Response to PricewaterhouseCoopers Whistle-blower Allegations 10 July 2024 AFRC analyses trading suspensions of listed entities due to delays in preliminary annual results announcements and calls for continued efforts to uphold high-quality audits and financial reporting 5 July 2024 AFRC reminds PIE auditors to be prepared for undertaking PIE engagements 28 June 2024 AFRC emphasises the importance of leadership setting the right tone at the top 27 June 2024 AFRC calls for concerted efforts to improve the quality of financial reporting and audit in Hong Kong 13 June 2024 AFRC reminds auditors of the importance of audit documentation integrity 29 May 2024
FRC Announces Appointment of Deputy CEO
Mr Marek Grabowski, CEO of the FRC, commented, “Florence has rich experience in supporting the then CEOs and Chairman in driving the FRC reform and subsequently, before my arrival, as Acting CEO in establishing the organization, resourcing, policies and procedures of the FRC under the new auditor regulatory regime. I am delighted to have her strategy and administration support in moving the FRC forward.” ... Under the new auditor regulatory regime, the FRC is growing and continuing to evolve to deliver its functions efficiently and holistically across the full spectrum of its expanded statutory duties. ... She is qualified as a certified public accountant and a certified internal auditor.