As from 1 October 2019, the amendments to the Financial Reporting Council Ordinance (the FRCO) take effect and the Financial Reporting Council (the FRC) becomes the Hong Kong’s independent regulator of listed entity auditors (PIE auditors). The FRC is entrusted with the statutory duty to initiate investigations to ensure that misconduct on the part of the PIE auditors and registered responsible persons are detected which will be referred to the Department of Discipline to consider appropriate follow-up actions . Such follow-up actions may include imposition of sanctions or referral to other regulators or law enforcement agencies for conduct falling within their jurisdiction.
For details, pleae refer to:
Investigation Policy Statement (for PIE engagements completed after 1 October 2019)
Sections 92 and 93 of the FRCO set out that an investigation may be initiated under Part 3 of the pre-amended FRCO in relation to any audit, or the preparation of any specified report, that had been completed for a listed entity before 1 October 2019, as if the 2019 Amendment Ordinance had not been enacted. For detailed policies and precedures in relation to such investigation, please refer to:
Investigation Policy Statement (for PIE engagements completed before 1 Oct 2019)