Mission, Values, Roles

Mission

The Financial Reporting Council (the FRC)​ is an independent body established on 1 December 2006 under the Financial Reporting Council Ordinance (the FRCO). It is entrusted with the statutory duty to regulate auditors of listed entities through a system of registration and recognition, and through inspection, investigation and disciplinary action.

The mission of the FRC is to uphold the quality of financial reporting of listed entities in Hong Kong, so as to enhance protection for investors and deepen investor confidence in corporate reporting.

Core Values​

The FRC is committed to the following core values:

  • Independence and impartiality
    The FRC operates independently. We perform our functions fairly, impartially and consistently, free from interference by the auditing profession and listed entities, and from political pressure.
  • Accountability and transparency
    The FRC believes that as a regulator, we should be accountable and transparent. We publish operational statistics, information on investigations and enquiries, and other reports. This allows the profession and the public to understand our operations and facilitates judgment of our performance.
  • Integrity
    Given the nature of our work, it is essential that members of the FRC Council and the staff are of the highest integrity. We adhere to high ethical standards in conducting our activities.
  • Proficiency
    We pledge to achieve our missions efficiently, effectively and professionally.

Roles

  • To recognise non-Hong Kong auditors​ for undertaking PIE engagements and carrying out PIE engagements for overseas entities.
  • To oversee the performance of the Hong Kong Institute of Certified Public Accountants (the HKICPA) in respect of their functions of registration, setting of standards on professional ethics and auditing and assurance; and setting of continuing professional development requirements in relation to PIE auditors.
  • To conduct inspections in relation to PIE engagements completed by auditors of listed entities.
  • To conduct independent investigations into possible auditing and reporting irregularities by auditors of listed entities.
  • To enquire into possible non-compliance with accounting requirements by listed entities.
  • To impose sanctions on auditors of listed entities for misconducts, if and when appropriate.​​​