Progress on the key action items
To achieve the strategic objectives and related initiatives, dedicated focus is required. The following list summarizes the key action items to achieve them, note that some run through a three-year time span or beyond. Indicative key timelines are shown where appropriate, other actions generally commenced in 2020 and continue in various forms across the three years.
This page tracks the progress of the Institute on the key action items, and any updates to them after review by the Institute to ensure that they remain relevant and comprehensive. Changes to action items since the release of the strategic plan are indicated with and “new” () and “updated” (
) icons.
Key action items | Status | |
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1 | Roll out the new Qualification Programme (QP) including the revised Practical Experience Framework (Associate Level: December 2020; Professional Level: June 2021; Capstone: December 2021; Practical Experience Framework: March 2022). Conduct a review to determine the further enhancement direction with digital development in mind.![]() |
The overall development timeline of the new QP remains on track. A feasibility study for online examinations with remote proctoring has been conducted and a long term development plan for online examinations will be developed. |
2 | Complete the Global Accounting Alliance (GAA) Qualification Framework for peer review among GAA bodies. (Peer review to take place in 2022) Renew reciprocal recognition agreements with respective international accounting bodies. | The renewal of the Mutual Recognition Agreement with GAA body AICPA and non-GAA bodies, ACCA and CPA Australia, were completed in June 2020. The GAA Education Directors’ Group has set up a Taskforce for reviewing reciprocal recognition agreements. |
3 | Develop electronic examination paper setting platform and pathway for computer-based examination and online scripts marking. (Commence project in Q2 2021 and enhancements by stages through 2021 and 2022.)![]() |
A secured electronic platform has been set up for setting examination papers under the new QP. |
4 |
Develop a marketing plan to promote the QP and enhance pre-QP student engagement. |
A publicity plan for QP in Hong Kong has been developed to promote career aspirations and raise public awareness on broad range of competencies and skill-sets of CPA. A strategic marketing plan for QP in Mainland is being developed with enhanced incentive schemes, accreditation with targeted universities and directed promotional activities. |
Key action items | Status | |
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5 | Bring in Hong Kong aspect and continue to participate in international and regional standard setting forums. Examples of standards under considerations include development of a reduced disclosure standard for subsidiaries that are SMEs, audit of less complex entities, as well as revising the definitions of listed entities and PIEs under the code of ethics. (Timelines of specific standard projects are aligned with timelines of international standard setters)![]() |
Audit and ethics
Financial reporting
The Financial Reporting Standards Committee and Standard Setting Department (SSD) have carried out public consultations and responded by comment letter to six major high priority financial reporting consultations during 2020. |
6 | Proactively develop and update local standards and manuals. (ESG assurance framework published December 2020.) Complete Phase 2 update of audit practice manual and update of quality management manual by 2022. Consider digitisation of APM.![]() |
Phase 1, consisting of a limited scope update to address the new and revised auditing and financial reporting standards and changes in the Companies Ordinance issued between 2016 and 2019, published in December 2020.
The Institute has engaged with a fellow accounting body to license a quality control manual ahead of the revised Quality Management Standards becoming effective.
Local financial reporting guidance
In February 2021, SSD completed post implementation review of our home-grown SME-FRF & SME-FRS. Published Amendments to the standards in March. Educational article was published in A Plus in July 2020, and educational guidance on COVID-19 related financial reporting issues for SME-FRF & SME-FRS was issued in August 2020. |
7 | Proactively identify local issues on application of standards and strengthen technical support services. Develop and enhance guidance notes, and FAQs for implementation of professional standards. Provide and facilitate additional support material and tools, including more practical advisory services such as peer group consultation. |
Materials issued Issued publications and A Plus articles on topical issues, including:
Education workshops Education workshops/seminars held on key topics including e-learning on SME-FRF & SME-FRS; a free webinar on the comprehensive review of the IFRS for SMEs Standard; and a series of webinars on COVID-19-related financial reporting issues for 2020 reporting periods in November and December 2020.
Members-Help-Members (M-H-M)
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Key action items | Status | |
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8 | Strengthen the regulatory provisions under the Professional Accountants Ordinance to meet current international benchmarks and enhance efficiency (with reference to the amended Financial Reporting Council Ordinance to ensure alignment where appropriate). Complete review and issue consultation paper on registered audit practice, practice review, complaint handling and disciplinary processes. (All elements of the consultation were approved by Council by October 2020. Tentative timeline for further action - Public consultation 2022; introduce bill to the Legislative Council, 2023)![]() |
Project ongoing. |
9 | Consider enhancement in the registration of public interest entity (PIE) auditors including issuing relevant guidelines. (Assess implementation issues 2021; draft guidelines 2022) |
CPD requirements were introduced during 2020 by the Registration and Practising Committee, and a flowchart developed to explain the policy to PIE auditors. |
10 | Consider the need for specific knowledge and skills requirements for public interest entity auditors that could be reflected in CPD requirements, drawing on the experience of the Financial Reporting Council in their inspection and investigation outcomes. (In collaboration with the FRC through 2021 and 2022)![]() |
Project ongoing. |
11 | Develop and roll out by phases AML monitoring programme to meet FATF expectation. (Initial information gathering Q4 2020; programme enhancements by stages through 2021 and 2022) Implement member engagement programme to address concerns and learning needs of members as an integral part of the monitoring programme enhancement.![]() |
Project ongoing. |
12 | Review changes to mix of practice units selected for review in light of FRC taking over review of public interest entity auditors, and to further increase the number of practice reviews carried out per year. | Increased practice review targets from 340 (2019) to 415 (2020). |
Key action items | Status | |
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13 | Assist SMPs to embrace technology by facilitating sourcing and evaluation of audit and/or practice management software. |
New merchandise discounts on software evaluated by the Institute have been offered, and advertised through the CPA Beats newsletter periodically. The Institute continue to promote the message to SMPs so to enhance their awareness of leveraging on technology in their daily business. |
14 | Develop integrated communication strategy to enhance image of the profession. Use social media to deliver key messages and short videos and improve viewership through content improvement and digital marketing. Improve structure and impact of website and gradual inclusion of Chinese articles and content.![]() |
Website revamp on the “About us” section has been completed, with enhancements on “Organization” and “Governance” sections respectively, with a view to enhancing more disclosure about how the Institute operates. The 2020 annual report also has a longer chapter on the institute’s governance for enhanced transparency.
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15 | Outreach to identify members’ aspirations and needs through forums and surveys. Deliver services and programmes to promote work-life balance and well-being of members and students. Enhance schemes to assist members in need under the consolidated HKICPA Trust Fund. (Q3 2021) |
Outreach programmes have been conducted, meeting members working in the public sector including Audit Commission, Inland Revenue Department and the Treasury, and in PAIBs covering members of the Hong Kong Business Accountants Association. |
16 | Roll out engagement programmes to target young members and QP students, particularly on the debut of the new QP. Strengthen member networks among different member groups and with other professional bodies. |
An information video for new members has been produced to explain the work of the Institute to new members. |
17 | Identify potential opportunities, provide information hub and work with relevant authorities to facilitate members working in other jurisdictions. |
Facilitate the cooperation of the Guangdong-Hong Kong-Macau CPA practices alliance so to explore the potential business opportunities. |
18 | Enrich signature events to promote financial education and social contributions of the profession. Organize signature conference to showcase thought leadership, ESG and sustainability, accounting plus, digital transformation.![]() |
Partnered with Bloomberg to co-organize the PAIB Conference in September 2020. |
Key action items | Status | |
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19 | Develop Professional Development Strategy for post-qualification development (Commence project in Q4 2020 and implementation by stages through 2021 and 2022).![]() |
Project ongoing. |
20 |
Deliver seminars and workshops that meet members’ evolving needs. Expand online resources and bring in quality programmes and offerings from other professional bodies. |
The new Business Valuation Programme and Professional Enhancement Programme in Forensic Accounting launched in 2021. |
21 | Rebrand the Best Corporate Governance Awards by strengthening the Sustainability and Social Responsibility Reporting Awards. (Rebrand commence 2021) Develop non-financial reporting guidelines and ESG reporting assurance framework. (Assurance framework Q4 2020.) Engage stakeholders to raise awareness and support of Task Force on Climate-related Financial Disclosures requirements. | An article focusing on the sustainability side of the Awards was published in October 2020 A Plus and the December 2020 issue included an interview with two of the Sustainability and Social Responsibility Reporting Awards winners. AATB 5 was published in December 2020. |
22 | Contribute to Hong Kong Business Valuation Quality Initiative Task Force. (Post-consultation framework available Q3 2021) | Project ongoing. |
23 | Develop a framework for training in forensic accounting. First sessions will run in Q2 2021. |
First sessions held in in 2021. |
24 | Advocate and develop the professions position as a key player in sustainability, ESG and non-financial reporting through learning materials and events, communication and explanation of international trends and participation in local and international groups and forums. (2021 and onward.)![]() |
Project ongoing. |
25 | Strengthen policy research work and thought leadership advocacy. Issue topical reports and survey findings, and raise awareness on topics that impact development of the profession. | Conducted the survey on the impact of COVID-19 on PAIBs in early August 2020 to match with the theme of the annual PAIB Conference. Issued two quick guides and a brief research on COVID-19-related corporate disclosures: (a) How to Manage Financial Distress – Advice for Business and Individuals (b) Combatting Fraud (c) COVID-19 disclosures by listed companies: A research study" Issued updated Liquidation and Insolvency Guidance Notes. September 2020 issue of A Plus included a roundtable discussion on corporate rescue and a profile of the Official Receiver. |
Key action items | Status | |
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26 | Issue consultation paper for one member one vote for election of President and Vice-Presidents and prepare related Professional Accountants Ordinance Amendment Bill based on views expressed. (Public consultation 1 March 2021 – 31 May 2021; subsequent consultation analysis and conclusions) | Consultation began on 1 March 2021. |
27 | Amend By-Laws to give members the choice to receive e-notice for annual general meetings (AGM) and to adjust the AGM timetable, in line with other professional bodies in Hong Kong. (Draft amendments approved at 2020 AGM;; legislative changes 2021 earliest) | Project ongoing. |
28 | Conduct a health check on the governance structure of the Institute. (Scope confirmed in Q4 2020; review carried out 2021)![]() |
Governance Committee approved the scope of review of the governance structure, which includes updating the comparative study, reviewing the TORs, roles, functions, membership and effectiveness of the committees etc. |
29 | Review management structure and provisions to ensure an efficient and effective operation. | Management structure has been streamlined to improve operation efficiencies. |
30 | Identify areas for disclosure in the Institutes’ own corporate governance and sustainability reporting for implementation by phases. |
Enhanced governance disclosures were included in the 2020 annual report. Further disclosure enhancement will be implemented in coming years as planned. |