IFAC Response to Hong Kong Financial Services and Treasury Bureau Consultation
IFAC commends the Financial Services and Treasury Bureau (FSTB) of Hong Kong on issuing the consultation paper, Proposals to Improve Regulatory Regime for Listed Entity Auditors. It is a very thorough and thoughtful consultation paper addressing a range of matters that aim to improve the regulatory regime for listed entity auditors in Hong Kong.
IFAC recognizes the importance of high-quality auditing and acts to promote and enhance audit quality around the globe. This includes supporting the development, adoption, and implementation of high-quality, internationally accepted auditing and quality control standards, promoting the need for global regulatory convergence where appropriate, and supporting the development of strong professional accountancy organizations and accountancy firms.
Given the critical role that auditing plays in the economy—in terms of being a mandated service that aims to enhance the credibility of financial reporting and providing benefits to the broader public well beyond those who are directly involved in the process—IFAC believes that the primary focus of regulatory reforms to auditing should be to enhance audit quality.
IFAC is encouraged that the FSTB appears to have drawn on examples from a range of different jurisdictions in developing this consultation paper. IFAC believes this is the right approach, one that ensures that the regulatory arrangements introduced into Hong Kong are fit-for-purpose and appropriate for the Hong Kong environment.