RECOGNITION OF OVERSEAS AUDITORS

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 Hong Kong’s independent regulator of listed entity auditors. All auditors intending to carry out a PIE engagement are subject to a system of registration (for Hong Kong auditors) and recognition (for non-Hong Kong auditors). A non-Hong Kong auditor is required to be recognized by the FRC before the auditor can (i) “undertake” (i.e. accept an appointment to carry out) any PIE engagement; and (ii) carry out any PIE engagement for an overseas entity.

Non-Hong Kong auditors recognised by the FRC are contained in the Register of PIE Auditors maintained by the Hong Kong Institute of Certified Public Accountants.

Further details of the recognition of overseas auditors including the meaning of “PIE engagement” are set out in the Recognition of Overseas Auditors Policy Statement​.

Recognition of Overseas Auditors (not including those in Mainland China)​

An application for the recognition of an overseas auditor ​should be made by the overseas entity intending to appoint the overseas auditor to carry out a PIE engagement.

An overseas entity, as an applicant, is required to submit Application Form A – Information of the Overseas Entity, and to coordinate with the proposed overseas auditor for the submission of Application Form B – Information of the Overseas Auditor.

For details of the procedures and eligibility requirements of the recognition of overseas auditors, please refer to Recognition of Overseas Auditors – Application and Renewal Procedures.


Renewal of recognition

The recognition of an overseas auditor as a recognized PIE auditor of an overseas entity expires on 31 December of the year in which the recognition takes effect. An overseas entity intending to retain a recognized PIE auditor to carry out a PIE engagement in the following year is required to apply to the FRC for renewal of the recognition. The renewal application must be made from 1 October to 16 November, both dates inclusive.

An overseas entity, as an applicant, is required to submit Application Form C – Information of the Overseas Entity, and to coordinate with the overseas auditor for the submission of Application Form D – Information of the Overseas Auditor.

Eligibility requirements for renewal of the recognition as a recognized PIE auditor are the same as those for the first time recognition of overseas auditors which are set out in Recognition of Overseas Auditors – Application and Renewal Procedures.

Application forms can be downloaded at Useful Forms.

If you have any questions relating to the recognition of overseas auditors, please refer to Frequently Asked Questions ​ or contact us by:

Email: recognition@frc.org.hk
Tel: +852 2810 6321
Fax: +852 2810 6320

Recognition of Auditors in Mainland China

As from 1 October 2019, an auditor who has been endorsed as being qualified to act as the auditor for a corporation incorporated in Mainland China and listed in Hong Kong under the mutual recognition agreement between Mainland China and the Hong Kong SAR (the Mutual Recognition Agreement), will be recognized as a PIE auditor without a recognition application being made to the FRC.

The recognition is valid as long as the Mutual Recognition Agreement is in force and the endorsement under the Mutual Recognition Agreement has not been withdrawn. The auditor may carry out any PIE engagements for a corporation incorporated in Mainland China and listed in Hong Kong and must carry them out in accordance with the China Accounting Standards for Business Enterprises or the Mainland Auditing Standards.​​​​​​​​​​​​​​​​​​​​