On 22 October 2021, the Financial Reporting Council (Amendment) Ordinance 2021 (“Amendment Ordinance 2021”) was passed with a view to further enhance the independence of the regulatory regime for the accounting profession in Hong Kong.
The Financial Reporting Council Ordinance (Cap. 588) (“FRCO”), as amended by the Amendment Ordinance 2021, will be renamed as the Accounting and Financial Reporting Council Ordinance (“AFRCO”).
With the introduction of the Amendment Ordinance 2021, the Financial Report Council (“FRC”) aims to enhance the quality of the accounting profession and the standards of corporate reporting and audits for all entities, whether or not a public interested entity, in Hong Kong. According to FRC, the regulatory regime of the accounting profession, including auditing, is proposed as the business models of corporate entities become more complex and Hong Kong further strengthens its position as a trading and international financial centre.
The FRC is now seeking views and invites written comments on the Proposed Documents through public consultation, and the consultation paper covers:
Engagement Relating to Investigation and Enquiry
Engagement Relating to Inspection
Engagement Relating to Registration and Issuance of Practising Certificates
AOGB believe the practitioners in the industry would be highly alert on their practice compliance and control of quality audits.