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Dear members,
W
hile Hong Kong’s growth has slowed in
recent quarters, and China continues to
carefully reposition its economy from an
export orientation to domestic
consumption amid an uncertain
international financial and trade environment, the accounting
profession in Hong Kong continues to display strength and
resilience.
The Hong Kong Institute of CPAs is steadfastly adhering to
its vision of being an internationally recognized, world-class, top
quality professional body that serves both the business community
and the wider public interest in Hong Kong and contributes to its
sustainable development as a leading financial centre.
It is especially important amid the current global environment
that the Institute meets its goals to contribute to and influence the
future of the profession worldwide.
As a statutory and key professional membership organization,
the Institute provides clear, decisive and innovative leadership to
a financially and business-attuned accounting profession.
During the year, the Institute faced a number of challenges and
achieved much progress through championing thought leadership
and upholding core ethical values, the public spirit of accounting
and the integrity of the profession.
Launchingmajor reform
As the Hong Kong regulatory and practising environment evolves
to meet international expectations and best practices, the Institute
must work closely with the government and regulators to ensure
the new audit regulatory regime is appropriate for Hong Kong.
The Institute must always keep a careful eye on how the
profession is regulated in order to preserve our strength and
remain in line with international benchmarks to maintain Hong
Kong’s premier position as a listing destination.
To meet these standards, the Institute, the Hong Kong
government and the Financial Reporting Council agreed that
there should be an independent body to exercise oversight over or
assume direct responsibility for certain audit regulatory functions.
The Institute began its work on audit reform in 2008 and
developed proposals to submit to the government. That process
culminated in 2013 with the release by the Institute of an
information paper, and a request for members to comment, on
the Regulatory Framework for Listed Company Audits jointly
developed by the government, the Financial Reporting Council
and the Institute.
The resulting member consultation indicated strong support
for the Council’s position on the proposed reform. However,
members indicated a general concern over the lack of detail in
some of the framework proposals resulting in questions on the
powers and functions of the independent oversight body and how
such powers would be exercised fairly and through due process.
The government launched its public consultation in June 2014
and took up many of the comments arising from our member
consultation. Still, there are certain questions to be addressed,
including the independence of disciplinary processes, the penalty
level, and the governance and funding of the independent body.
The Institute will continue to work with the government and
stakeholders to ensure fair debate is encouraged on outstanding
issues.
Upholding quality
We ensure that our Qualification Programme remains globally
recognized and continues to provide the skills, expertise and
ethics training needed by our prospective members, who will be
“
The Institutemust always keep
a careful eye on how the profession
is regulated in order to preserve
our strength and remain in line with
international benchmarks.
”
Message from the leadership
