Hong Kong Institute of Certified Public Accountants

Under the Accounting and Financial Reporting Council Ordinance (Cap. 588), the Accounting and Financial Reporting Council (AFRC) is responsible for all quality assurance (QA) review functions in Hong Kong Special Administrative Region (S.A.R.). The QA system in place is operational for all mandatory audits and is aligned with the requirements of SMO 1.

Prior to October 2019, the Hong Kong Institute of Certified Public Accountants (HKICPA) was responsible for implementing quality assurance review procedures through its Practice Review Programme, which assessed compliance of members with applicable professional standards and legal requirements in the performance of audit work. During this period, HKICPA also issued annual reports on QA activities and maintained quality control requirements aligned with the then Hong Kong Standard on Quality Control 1, which was converged with the corresponding international standard.

Following the transfer of regulatory responsibility to the AFRC, HKICPA continues to fulfill its relevant obligations through the setting and ongoing update of auditing and quality management standards under AFRC oversight. This includes the adoption and maintenance of Hong Kong Standard on Quality Management 1 and Hong Kong Standard on Quality Management 2, which are aligned with the corresponding International Standards on Quality Management.

To support implementation, HKICPA maintains a quality management resource centre, issues implementation guidance and manuals, and delivers relevant continuing professional development and technical training sessions for members and firms. HKICPA also continues to monitor international developments and update its standards and implementation support materials accordingly.

Through these ongoing and well-established processes, HKICPA maintains effective mechanisms to fulfill its obligations under SMO 1 and continues to review and enhance support for quality management and quality assurance across the profession.

Current Status: Sustain

Under the Professional Accountants Ordinance (Cap. 50), the Hong Kong Institute of Certified Public Accountants (HKICPA) is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants in Hong Kong Special Administrative Region (S.A.R.). These functions are carried out under the oversight of the Accounting and Financial Reporting Council (AFRC).

HKICPA maintains a well-established professional qualification framework through its Qualification Programme, which incorporates the requirements of the International Education Standards (IES). The programme comprises the Associate Level, Professional Level, and Capstone, followed by a final assessment. Candidates are also required to complete a minimum of three years of relevant practical experience under the Practical Experience Framework.

Individuals seeking to obtain a practicing certificate as a Certified Public Accountant (Practising) must meet additional requirements, including relevant post-qualification practical experience and, where applicable, completion of Practising Certificate Examinations in auditing, local law, and taxation.

To ensure continued alignment with international best practice, HKICPA periodically reviews and benchmarks its Qualification Programme against the International Education Standards and against the qualification frameworks of leading global professional accountancy organizations, including members of the Global Accounting Alliance.

HKICPA also maintains an extensive continuing professional development framework for members, including mandatory CPD requirements aligned with International Education Standard 7. The Institute offers a broad range of technical and specialist training programmes annually, including competency-based learning, specialist qualifications and designations, and technical training in areas such as insolvency, taxation, financial controllership, business valuation, and emerging reporting developments.

Through these established and continuously reviewed processes, HKICPA maintains well-developed mechanisms to fulfill its obligations under SMO 2 and continues to review and enhance the education and development framework for professional accountants.

Current Status: Sustain

Under the Accounting and Financial Reporting Council Ordinance (Cap. 588), the Accounting and Financial Reporting Council (AFRC) is responsible for overseeing audit standard-setting activities in Hong Kong Special Administrative Region (S.A.R.). Under the oversight of the AFRC, the Hong Kong Institute of Certified Public Accountants (HKICPA) continues to set auditing standards.

Hong Kong Standards on Auditing (HKSA) are issued by the Auditing and Assurance Standards Committee of HKICPA and have been continuously updated since 2005 to maintain alignment with the International Standards on Auditing issued by the International Auditing and Assurance Standards Board. HKICPA maintains established procedures to review, monitor, and incorporate new and revised pronouncements issued by the International Auditing and Assurance Standards Board to ensure that auditing standards in Hong Kong S.A.R. remain current, including updates reflected in the 2025 Handbook.

To support implementation by members and firms, HKICPA publishes technical bulletins, implementation guidance, alerts, and other technical resources through its website and professional publications. The Institute also organizes technical seminars, forums, and an annual auditing conference to raise awareness of new and revised auditing and quality management standards and to support consistent application across the profession.

HKICPA actively participates in the international standard-setting process through review of International Auditing and Assurance Standards Board agenda materials, submission of responses to exposure drafts and consultation papers, and participation in national standard-setter meetings, roundtables, and other international forums.

Through these ongoing and well-established processes, HKICPA maintains effective mechanisms to fulfill its obligations under SMO 3 and continues to review and enhance support for the implementation of auditing standards.

Current Status: Sustain

Under the Accounting and Financial Reporting Council Ordinance (Cap. 588), the Accounting and Financial Reporting Council (AFRC) is responsible for overseeing the setting of ethical standards and related requirements in Hong Kong Special Administrative Region (S.A.R.). Under the oversight of the AFRC, the Hong Kong Institute of Certified Public Accountants (HKICPA) continues to set ethical requirements for professional accountants.

HKICPA has established a Code of Ethics for Professional Accountants that is aligned with the 2025 edition of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants. In addition to the provisions aligned with the international Code, HKICPA includes supplementary local chapters and guidance to address jurisdiction-specific matters, including insolvency, liquidation, anti-money laundering, and other professional practice considerations applicable in Hong Kong S.A.R.

HKICPA actively monitors developments issued by the International Ethics Standards Board for Accountants and provides regular updates to members through technical releases, professional publications, and dedicated ethics resources available through its website and Members’ Handbook. Ethics requirements are also integrated into both initial professional development and continuing professional development programmes.

To support implementation, HKICPA provides technical guidance and assistance through its technical enquiry service, professional magazine, ethics surveys, education videos, case studies, and online technical resources, including the ethics standards section of its website.

HKICPA also actively participates in the international standard-setting process by reviewing and responding to exposure drafts and consultation papers issued by the International Ethics Standards Board for Accountants and by participating in national standard-setter meetings, roundtables, and other international forums.

Through these ongoing and well-established processes, HKICPA maintains effective mechanisms to fulfill its obligations under SMO 4 and continues to review and enhance support for the implementation of ethical requirements.

Current Status: Sustain

The Government of Hong Kong Special Administrative Region (S.A.R.) has not adopted International Public Sector Accounting Standards (IPSAS) as the standards to be applied by public sector entities. Under the Public Finance Ordinance (Cap. 2), public sector entities apply national accounting requirements on a cash and accrual basis.

Within the scope of its mandate, the Hong Kong Institute of Certified Public Accountants (HKICPA) does not have direct authority over the establishment of public sector accounting standards. However, HKICPA reports that it uses its best efforts to facilitate dialogue and raise awareness regarding IPSAS as a suitable framework for robust, transparent, and internationally comparable public sector financial reporting.

HKICPA supports thought leadership and professional dialogue on developments in public sector reporting through technical updates, professional publications, training activities, and engagement with relevant stakeholders where appropriate.

Given the nature of its mandate and the legal and regulatory framework in the jurisdiction, HKICPA maintains appropriate ongoing processes in this area and continues to support awareness and dialogue relating to international public sector reporting developments.

Current Status: Sustain

Under the Accounting and Financial Reporting Council Ordinance (Cap. 588), the Accounting and Financial Reporting Council (AFRC) is responsible for investigation and disciplinary procedures for professional accountants in Hong Kong Special Administrative Region (S.A.R.). The investigative and disciplinary system in the jurisdiction is operational and aligned with the requirements of SMO 6.

Prior to the transfer of regulatory responsibilities, the Hong Kong Institute of Certified Public Accountants (HKICPA) maintained an established investigative and disciplinary framework that was aligned with SMO 6 best practices. This included independent investigation and disciplinary procedures, annual reviews of the compliance function by the Regulatory Accountability Board, and publication of investigation and disciplinary outcomes through the HKICPA website to promote transparency and public confidence.

Following the regulatory reforms, HKICPA’s direct disciplinary responsibilities are now primarily limited to matters relating to students and membership-related issues within its remaining statutory functions. Within the scope of these responsibilities, HKICPA continues to apply SMO 6 best practices where relevant.

HKICPA also continues to support awareness of professional conduct requirements through ethics education, continuing professional development, technical guidance, and communication with members and students.

Given the nature of its current mandate and the jurisdiction’s legal and regulatory framework, HKICPA maintains appropriate ongoing processes in this area and continues to fulfill its obligations under SMO 6.

Current Status: Sustain

Under the Accounting and Financial Reporting Council Ordinance (Cap. 588), the Accounting and Financial Reporting Council (AFRC) is responsible for overseeing the setting of financial reporting standards in Hong Kong Special Administrative Region (S.A.R.). Under the oversight of the AFRC, the Hong Kong Institute of Certified Public Accountants (HKICPA) continues to set financial reporting standards.

HKICPA develops and issues Hong Kong Financial Reporting Standards (HKFRS), which are aligned with International Financial Reporting Standards (IFRS) Accounting Standards and are required for the preparation of annual financial statements by listed companies, banks, insurance companies, and other publicly accountable entities. For private entities, the HKFRS for Private Entities is available and is substantially aligned with the IFRS for Small and Medium-sized Entities. HKICPA maintains established procedures to monitor new pronouncements and revisions issued by the International Accounting Standards Board to ensure that standards in Hong Kong S.A.R. remain continuously updated, including alignment with the 2025 IFRS Accounting Standards in effect at the time of the assessment.

To support implementation by members and firms, HKICPA updates relevant standards and guidance in its Members’ Handbook and disseminates new and revised pronouncements through technical publications, alerts, and online resources. The Institute also organizes regular technical seminars, workshops, roundtables, and annual accounting update events, and incorporates financial reporting standards into both initial professional development and continuing professional development programmes.

HKICPA actively participates in the international standard-setting process by responding to exposure drafts and consultation papers issued by the International Accounting Standards Board and by gathering stakeholder views through roundtables, individual outreach activities, and research initiatives relevant to Hong Kong S.A.R. HKICPA also participates in regional and international standard-setting forums and related professional networks.

Through these ongoing and well-established processes, HKICPA maintains effective mechanisms to fulfill its obligations under SMO 7 and continues to review and enhance support for the implementation of financial reporting standards.

Current Status: Sustain