Speaker(s)

• Ms Mary Leung, Head of Policy, Registration and Oversight, AFRC
• Ms Tracy Chan, Director of Policy, Registration and Oversight, AFRC
• Mr Peter Kung, Adjunct Professor, The Chinese University of Hong Kong (Panellist)
• Mr Johnson Kong, Lead Investment Stewardship Analyst, Hong Kong, BlackRock (Panellist)
• Ms Polly Wong FCG HKFCG(PE), Company Secretary and Group Financial Controller, Dynamic Holdings Limited (Panellist)
• Mr Ernest Lee FCG HKFCG(PE), President, The Hong Kong Chartered Governance Institute; Technical Partner, Deloitte China (Chair)

Description

External uncertainties and other emerging risks pose challenges to the quality of financial reporting, creating additional expectations for upholding the quality of corporate governance regarding auditor selection and setting of audit fees.

Audits provide credibility to financial statements and give public confidence in their truthfulness and fairness. The consequences of having a subpar audit can be substantial, especially when audits fail to probe rigorously going concern assumptions or detect fraudulent behaviour that may cause a company’s collapse. However, the quality of audits varies and it is not always easy for management and the Board or other users of the financial statements to judge audit quality.

A suitable auditor not only serves as an independent gatekeeper on the quality of financial reporting, but can also become a trusted advisor by providing value-added insights to alleviate the burdens of those charged with governance.

In this webinar, Accounting and Financial Reporting Council (AFRC) will provide an overview on the best practices for selecting and appointing auditors and setting audit fees. These factors are crucial to upholding the quality of audit, financial reporting and corporate governance, which in turn will drive the resilience and continued success of Hong Kong’s capital markets.

The webinar will also cover the respective roles and suggested actions for each key stakeholder groups, including audit committees, auditors, management and the Board, and shareholders and investors.

Key topics to be covered:

• The role of AFRC;
• How auditor appointment and setting of audit fees are relevant to the capital markets;
• Considerations for selecting and appointing auditors;
• Considerations for setting adequate audit fees; and
• Practical recommendations on actions for each key stakeholder group in the event of auditor resignation.

Background information:

About the AFRC

AFRC is an independent body established under the Accounting and Financial Reporting Council Ordinance. As an independent regulator, AFRC spearheads and leads the accounting profession to constantly raise the level of quality of professional accountants, and thus protects the public interest. For more information about the statutory functions of the AFRC, please visit https://www.afrc.org.hk.

Recommended reading

In March 2023, AFRC published two reports on the appointment of auditors by audit committees and on audit fees in Hong Kong.

• The 2023 Survey Report on the Implementation of the Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors (the Survey Report) contains results of AFRC’s online survey on the practical realities facing auditors and audit committees in the appointment of auditors and the setting of audit fees.
• The Audit Fees Paid by Listed Companies in Hong Kong 2020-2021 (the Audit Fees Report) analyses the audit fees paid by listed companies and what effects, if any, COVID-19 and the ensuing economic downturn have had on the market.

Level: Intermediate

Speakers' bio:
Ms Mary Leung
Ms Tracy Chan
Mr Peter Kung
Mr Johnson Kong
Ms Polly Wong
Mr Ernest Lee

Seat guarantee will only be given to HKCGI Fellows and/or Practitioner’s Endorsement (PE) holders if registered 10 clear working days with payment prior to the date of the seminar.