Audit and Regulator

Auditing practice - Reviewing Significant Controller Register

Does the auditor need to review the significant controller register (the SCR) in identifying related party and related party transactions (RPT)?

The related party and any RPT disclosed in the financial statements are management assertions. The significant controller register (SCR) is a piece of statutory record.

See the discussion here [read]

 

Disciplinary Order 

The government of Hong Kong has delegated the regulatory power to the HKICPA (HKICPA) under the PAO on the compliance with the professional standards by the accounting and auditing professionals in Hong Kong. [Read]

 

Investigation by Accounting and Financial Reporting Council (the AFRC) under the Accounting and Financial Reporting Council Ordinance (the AFRCO)

The role of the AFRC

• To conduct independent investigations into possible auditing and reporting irregularities,
• To enquire into possible non-compliance with accounting requirements on the part of listed entities.

The AFRC may initiate investigations or enquiries upon receipt of complaints or on its own initiative.

The AFRC is empowered to oversight any auditing or reporting irregularities. Any non-compliances relevant to the Listing Rules will be referred to The Stock Exchange of Hong Kong Limited or the Securities and Futures Commission for follow-up action. The AFRC is not empowered to discipline or prosecute.

See disciplinary sanction, process, and cases [Read]