The Financial Reporting Council (FRC), Hong Kong’s accounting regulator, has promised to conduct more investigations to root out audit failures to help strengthen investors’ confidence. The pronouncement came as FRC said it received 159 “pursuable complaints” about potential audit failures between April and December 2021, up from just 36 in the same period of 2020. The FRC has gained more power as a result of several law changes in the past two years. In 2021, it started 15 new investigations into auditing violations and made 11 inquiries into listed companies about their accounting practices. The Public Company Accounting Oversight Board, FRC’s American counterpart, issued a report in December where it complained that 15 Hong Kong and mainland Chinese audit firms had not complied with its requirements.
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