Your fortnightly technical updates newsletter (15 September 2021)

Standard setting

Invitation to comment

The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Exposure Draft Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities by 31 December. The proposed standard aims at focusing the work of auditors through requirements designed to be proportionate to the typical nature and circumstance of less complex entities. Members are also invited to:

Take part in the Institute’s survey, which highlights the key attributes of the exposure draft followed by yes/no questions
Participate the Institute’s roundtable on 9 November to share views on the exposure draft. Members attending the roundtable will be entitled up to 1 CPD hour

To facilitate responses, the IAASB has prepared an optional response template .

Workshop on audit of licensed corporations

Join the workshop on 8 November to learn about audits of licensed corporations regulated by the Hong Kong Securities and Futures Commission. The workshop will cover:

An overview of the Hong Kong Securities and Futures Ordinance requirements
Highlights and reminders on Practice Note 820 (Revised) The Audit of Licensed Corporations and Associated Entities of Intermediaries
New amendments of the Securities and Futures (Financial Resources) Rules for the preparation of financial returns
Sharing of key future developments in rules and regulations relevant to audit

Panel discussion webinar on audit quality

The webinar recording of a panel discussion on how a culture of challenge and professional scepticism can contribute to audit quality in firms is now available.

Auditing and Assurance Standards Committee meeting minutes

Minutes of the meeting held in July is now available.

2020 IAASB Handbook

The IAASB has released the 2020 edition of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. It includes ISA 540 (Revised) Auditing Accounting Estimates and Related Disclosures; conforming and consequential amendments from ISA 540 (Revised) to other standards; changes for the conforming amendments arising from the restructured International Code of Ethics for Professional Accountants (including International Independence Standards). It also includes standards which are not yet effective in the back of Volume 1 and 2.

Exploring the link between culture and high-quality audit

The Financial Reporting Council in the UK published a summary document from its recent Culture Conference held in June which explores a variety of themes namely building an audit firm culture that supports high quality audit; the role of audit committees; the importance of a culture challenge; embedding and measuring organizational culture; audit firm culture, audit quality and the role of the regulator.

ICAEW audit and assurance resources

The Institute of Chartered Accountants in England and Wales (ICAEW) has the following material that may be of interest to members:

Financial Reporting, Audit and Assurance Conference: Join the virtual event on 11 and 12 October and explore how reporting and audit are transforming to strengthen the trust and to help build a sustainable future
Hot topics and tips for 2022 audit: Join the online webinar on 1 November aiming at helping small and medium sized audit firms get ready for the 2021/22 reporting season. It focuses on current topical issues and areas for improvement on audits into 2022 and top tips for auditing in post pandemic world
Audit and Beyond September 2021: Access to technical articles on application of ISA 540 (Revised); improving audit files; resources to help firms with their approach to quality management

Institute members can also subscribe to ICAEW’s International Standards for free to access a wide range of resources on auditing and ethics.

Ethics Committee meeting minutes

Minutes of the meeting held in June is now available.

Maintaining an ethical and supportive culture during remote working

An ICAEW article explores practical steps some firms have taken to ensure that an ethical and supportive culture is maintained whilst teams of staff work remotely.

Advocacy and practice development

Invitation to comment

The Official Receiver’s Office has issued a letter to the Institute, inviting comments and views from insolvency practitioners on the proposals made by the Official Receiver on revising the security requirements for appointment of liquidators in compulsory winding-up proceedings and appointment of trustees in bankruptcy proceedings.

Please refer to the letter for details. If members have any comments or views on the proposals, please email to rif@hkicpa.org.hk by 24 September.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following matter:

Government welcomes formal launch of Cross-boundary Wealth Management Connect

AML notices

Gazetted list of terrorists and terrorist associates designated by the United Nations Security Council, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) was gazetted on 8 September. The List of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and AI-Qaida) Regulation (Cap.537CB) was updated on 7 September. See the relevant UNSC press release.

For the current lists of terrorists, terrorist associates and relevant persons/ entities under United Nations sanctions, members should refer regularly to the Institute's AML webpage. Other useful documents and guidance can also be found on the same page.

Useful resources

Publications from other organizations:

ESG, clean energy, and the need for reliable data from Financial Management
Budgeting for cybersecurity requires a new approach from CFO.com
What 15 CEOs have to say about the future of work from CNN
6 habits that help successful people maximize their time from Entrepreneur
Increase your influence at work from CPA Insider
Planning ahead for the new quality management standards by ICAEW

Install the HKICPA Events app

Disclaimer: Some sections contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.

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