Under the Financial Reporting Council Ordinance, the FRC has the power 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 for ethics and auditing and assurance, and setting of requirements for continuing professional development in relation to PIE auditors. The FRC is also responsible for the recognition of non-Hong Kong auditors if they intend to (i) "undertake" (i.e. accept an appointment to carry out) any PIE engagement; and (ii) carry out any PIE engagement for an overseas entity.
The Department of Oversight, Policy and Governance is responsible for overseeing the performance of the HKICPA in relation to their functions mentioned above and for recognising non-Hong Kong auditors who intend to undertake and/or carry out any PIE engagement for overseas entities. The Department will also conduct policy research that is conducive to enhancing the quality of financial reporting and audit quality, and publish guidance on governance and other issues where appropriate.