Over two-thirds of HK auditors comply with new standards

Hong Kong's Accounting and Financial Reporting Council (AFRC) has found that only 68% of auditors are on the right track as the December 15 deadline to comply with new and revised quality management standards comes closer. AFRC requires public interest entity auditors, which audit Hong Kong's listed companies, to design a system of quality management to monitor the engagements of the firms, which will take effect mid-December. The AFRC in September surveyed 44 registered public interest entity (PIE) auditors and 24 overseas recognized PIE auditors on their progress. The survey found that 32% have fallen behind their planned schedule or have not started the program. The regulator urged PIE auditors to implement the system in a timely manner, as the AFRC will inspect their quality management system under the new standards from 2023.