Practice review

Practice review is a quality assurance programme that covers the provision of audit and other related assurance services in Hong Kong by firms, corporate practices and individual practising certificate holders (practice units). The Institute originally introduced practice review in 1992 under the authority and powers granted by the Professional Accountants Ordinance.


The current practice review programme was introduced in 2006. The review process has been revised to focus on risk – in the selection of practice units and specific audit engagements for review. The quality assurance department uses its resources to ensure due attention is paid to practice units that are engaged in auditing higher profile or public interest, predominantly listed entities.


The review programme forms an important element in the overall scheme of audit regulation in Hong Kong. The results of the practice reviews carried out on practice units by the quality assurance department are reported to the practice review committee which is the committee responsible for exercising the powers given to the Institute by the Professional Accountants Ordinance.


Practice review can also encourage and assist practice units to improve adherence to professional standards and raise the quality of auditing. The results from the practice review programme provide valuable content to the Institute’s programmes of learning and development for members. Practice review can be constructive and helpful to members while still effectively fulfilling an important regulatory role.


The current review process is based around assessing practice units’ systems and procedures of quality control as required by Hong Kong Standard on Quality Control 1.