Hong Kong’s Accounting and Financial Reporting Council (AFRC) has reiterated its expectation of PIE auditors 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.
The AFRC stressed that it expects full and active cooperation from all firms to facilitate the efficient and effective discharge of its statutory functions, including registration, inspection, investigation, discipline and the promotion of the sustainable development of the accounting profession.
Additionally, the AFRC asserted that it will not hesitate to hold them accountable by taking robust enforcement actions against those who delayed in the self-reporting of critical incidents and were subsequently found to have committed any misconduct or violation of the AFRCO, irrespective of whether those firms or persons have been disciplined by other local, Mainland or overseas regulators.
Acting CEO of the AFRC Janey Lai said: “Compliance is a must, not an option. It is a commitment that must be ingrained in the firm’s culture and embraced by all individuals of the firm, from leadership to front-line employees. Compliance is not just a legal obligation but a fundamental pillar of responsible and sustainable practice. I am confident that a compliance culture is conducive to better control and high quality for firms and their engagements respectively.”
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