The Government today welcomed the publication of the 14th annual report from the Process Review Panel for the Accounting & Financial Reporting Council (AFRC).

In the 14th review period, the panel reviewed the AFRC’s work in 2021 under its statutory functions, namely inspection, investigation and enquiry, recognition of overseas public interest entities auditors, and oversight of the Hong Kong Institute of Certified Public Accountants (HKICPA)' performance of specified functions.

The panel concludes in the report that the AFRC carried out its work successfully in accordance with internal procedures.

The Financial Services & the Treasury Bureau said process review helps to enhance the transparency and accountability of the AFRC in performing its statutory functions under the Accounting & Financial Reporting Council Ordinance.

The bureau thanked the panel members for their dedication in working with the AFRC to improve Hong Kong’s financial reporting and corporate governance regime.

Under the new regulatory regime for the accounting profession that came into effect last October, the AFRC’s regulatory functions have been expanded. Its new functions include issuing practising certificates to certified public accountants; registering public interest entities auditors and practice units; inspection, investigation and discipline for the accounting profession; and oversight of the HKICPA’s performance in relation to its various professional functions.

As such, the scope of the panel’s reviews has also been expanded, the bureau explained.