Standard setting |
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Institute workshops on IFRS/HKFRS 17 Insurance Contracts (Re-run) |
International Financial Reporting Standards (IFRS)/ HKFRS 17 will soon be effective starting from 1 January 2023. The Institute will re-run a 1.5 day face-to-face workshop in December 2022 for life insurers who are interested in acquiring practical knowledge of this standard.
- 2 December 2022: Life insurance (Part 1) – Overview and deep dive application
- 14 December 2022: Life insurance (Part 2) – Deep dive application
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Reminder: Institute live webinars on financial reporting |
Join the following webinars in November to stay updated:
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Institute’s Financial Reporting Standards Committee meeting minutes |
Minutes of the September 2022 meeting is now available. |
IASB October 2022 podcast & update |
The International Accounting Standards Board (IASB) podcast, with its chair and executive technical director highlighting the projects discussed during its October meeting, and a summary of the October meeting, are now available. |
Q3 2022 IFRS Interpretations Committee podcast |
In this podcast, the IFRS Interpretations Committee Chair and member of the IASB Bruce Mackenzie joins Technical Staff Member Patrina Buchanan to discuss activities to support consistent application of IFRS Accounting Standards in the third quarter of 2022. |
IFRS Interpretations Committee agenda decisions |
The IFRS Interpretations Committee has published the following agenda decisions:
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Invitation to comments |
The Institute is seeking comments on International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft on proposed changes to International Standard on Auditing (ISA) 500 (Revised), Audit Evidence and proposed conforming and consequential amendments to other ISAs by 24 March 2023. The proposed changes:
- Clarify ISA 500’s purpose and scope and explain its relationship with other standards;
- Provide a principles-based approach to considering and making judgments about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
- Modernize ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor’s use of technology, such as automated tools and techniques; and
- Emphasize the role of professional skepticism when making judgments about information intended to be used as audit evidence and evaluating the audit evidence obtained.
The proposed ISA 500 (Revised) provides a “reference framework” for auditors when making judgments about audit evidence throughout the audit. |
Implementing your system of quality management by 15 December 2022 |
In less than two-month time, firms will be required to have designed and implemented a system of quality management (SOQM) that complies with Hong Kong Standard on Quality Management (HKSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements which will be effective from 15 December 2022. Below is a list of resources that helps firms to implement the new and revised quality management requirements: The Institute’s Quality Management Manual offers steps firms need to take to implement the new requirements. Among others, it comprises a pre-populated Risk Assessment Tool with over 100 examples of risks for firms to customize and add their own risks based on their assessment and circumstances. The Institute’s E-Learning: Quality Management Standards Series highlights the key requirements and provides practical applications and illustrated examples on how small and medium practitioners can meet the new requirements. The Institute’s Alert: Getting Ready for the Quality Management Standards provides the following tips and practical examples for firms to get started with the implementation:
- A 5-minute sound clip sharing by the former Chair of the IAASB on how a sole practitioner should identify the quality risks and responses for his/her firm.
- An illustrative risk assessment process for the governance and leadership component of a firm’s SOQM.
The Institute’s Frequently Asked Questions lists out common questions and responses in relation to the design and implementation of the firm’s SOQM. Online resource centres developed by the Institute and other professional bodies with collection of guidance to the quality management standard:
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Revised standard on risk assessment for 2022 audits |
Hong Kong Standard on Auditing (HKSA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement is effective for audits of financial statements for periods beginning on or after 15 December 2021. It introduces major changes in the approach to risk identification and assessment which will have far-reaching effects for firms of all sizes. The following resources provide tips and support for your implementation of HKSA 315 (Revised 2019):
- The Institute’s Audit Practice Manual (2022 edition) addresses the new and revised requirements of HKSA 315 (Revised 2019). Guidance notes, audit programmes and checklists, and the example audit engagement file accompanying the manual has also been updated for the latest auditing, financial reporting and other relevant disclosure requirements.
- The Institute’s E-learning on HKSA 315 (Revised 2019) provides a deep dive on the new and revised requirements and discusses their implementation on auditing.
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Workshops and webinars on auditing and assurance |
Don’t miss the following training opportunities in November and December:
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New quality management series: small firm implementation |
To help small firm practitioners implement the new quality management standards, the International Federation of Accountants (IFAC) has released a new three-part publication series focusing on providing tips and guidance for practical implementation.
The first installment of the series – It is time to get ready for the new quality management standards addresses the mindset change the new standards require and the shift in focus from quality control to quality management. It also includes developing a project implementation plan, an introduction to quality objectives, the risk assessment process, and assigning roles and responsibilities. Helpful meeting agenda templates practitioners can use with their colleagues are also included. |
Challenges, initial steps and key resources for small firm digitalization |
This article by the IFAC discusses a range of factors impacting small firms’ adoption of technology and provides guidance on initial steps and key resources for small firms’ digitization journey. |
IAASB digital technology market scan: homomorphic encryption |
The fifth Market Scan from the IAASB’s Disruptive Technology team introduces “homomorphic encryption” – a technology which has applications within information protection and has the potential to impact how data is used in the audit as well as many potential benefits for a wide range of industries from healthcare to financial services. From an audit and assurance perspective, there are several areas where homomorphic encryption can be leveraged. |
ISQM 1 implementation: a sole practitioner approach |
This article from ICAEW shares the experience of a sole practitioner in implementing the quality management standards and outlines the approach with some useful step-by-step advice. |
IAASB eNews |
The IAASB October 2022 eNews is now available. It highlights various activities going on in and around the IAASB. |
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HKICPA resource centre |
Access resources and publications at the Institute’s revamped Resource Centre to the Code which will keep you updated on the latest ethics pronouncements. |
Ethics article on responding to NOCLAR by PAIBs |
The Institute has published an article exploring the responsibilities of professional accountants in business (PAIBs) to respond to non-compliance with laws and regulations (NOCLAR) in accordance with the response framework set out in the Code of Ethics for Professional Accountants (Code) with illustrative scenarios applicable to PAIBs. |
Ethics Circular 1 Guidance for Small and Medium Practitioners on the Code of Ethics for Professional Accountants |
The Institute has updated the Ethics Circular 1 to incorporate the new and revised non-assurance services (NAS) provisions aiming at providing guidance to small and medium practitioners including sole practitioners, on their application of the Code to certain NAS and other topical issues. |
Revised non-assurance services and fee-related provisions of the Code of Ethics for Professional Accountants |
Don’t miss the Institute’s E-learning: Revised Non-Assurance Services and Fee-Related Provisions of the Code of Ethics for Professional Accountants which provides an overview of the revisions to the NAS and fee-related provisions of the Code and deep dives into areas such as the new self-review threat prohibition for public interest entities audit clients; self-interest threats created by fees paid by an audit client; strengthened provisions regarding relative size of fees to the firm from a particular audit client, etc. The revisions will be effective for periods beginning on or after 15 December 2022; otherwise, they will be effective as of 15 December 2022. |
Ethics considerations in sustainability reporting |
This publication by the IESBA staff highlights the relevance and applicability of the International Code of Ethics for Professional Accountants (including International Independence Standards) to ethics-related challenges in the context of sustainability reporting and assurance, especially circumstances involving misleading or false sustainability information (i.e., “greenwashing”). Presented in a series of questions and answers, the publication is intended to assist professional accountants in preparing sustainability reports or disclosures. It will also be useful to various stakeholders with an interest in the work of professional accountants and in sustainability reporting and assurance. |
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ISSB October 2022 podcast & update |
The International Sustainability Standards Board (ISSB) podcast, with its chair and vice-chair highlighting the projects discussed during its October meeting, and a summary of the October meeting, are now available. |
