Investigations and Enquiries
- annual renewal of practising certificates
- annual renewal of CPA Firm, Corporate Practice and PIE Auditor registrations; and
- application for registration as a Registered PIE Auditor.
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Policy and Oversight
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Registration
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Inspection
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Investigations & Enquiries
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Discipline
Investigations
On 1 October 2022, the Accounting and Financial Reporting Council Ordinance (AFRCO) takes effect and the Accounting and Financial Reporting Council (AFRC) becomes the independent regulatory body for the accounting profession in Hong Kong. The AFRC is entrusted with the statutory duty to initiate investigations to ensure that misconduct on the part of the public interest entity (PIE) auditors, registered responsible persons, non-PIE auditors and professional persons (collectively Regulatee) are detected which will be referred to Discipline Department 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, please refer to:
- Investigation Policy Statement for PIE Auditors, Non-PIE Auditors and Registered Responsible Persons;
- Investigation Policy Statement for Professional Persons; and
- Investigation Policy Statement (in relation to audits or the preparation of specified reports completed for listed entities before 1 October 2019)
The diagram below depicts the overall investigation process:
The AFRC acquires information about potential misconduct or irregularities from various sources and assesses any such information to determine whether to give direction to investigate by identifying any potential misconduct or practice or professional irregularities, and determining whether the evidence meets a relevant threshold for initiating an investigation under the AFRCO. If the AFRC concludes that an investigation is warranted and the evidence meets a relevant threshold for initiating an investigation under the AFRCO, the AFRC will direct an investigation to be carried out.
In conducting an investigation, the investigator may exercise the relevant investigation powers under the AFRCO. Such powers include requiring the Regulatee and any other specified persons to produce relevant records and documents, provide information, attend interviews and answer questions from the Investigator, and to give the Investigator all other assistance in connection with the investigation, as appropriate.
The Investigator will prepare a written investigation report after the completion of the investigation, and send a draft of the investigation report to the Regulatee and any other person named in the draft ("Other Named Persons") before submitting the investigation report to the AFRC.
The Investigator will give the Regulatee and any Other Named Persons a reasonable opportunity to be heard in respect of the dated draft investigation report.
On an investigation report being submitted to the AFRC, the AFRC may, having regard to the investigation report:
(a) close the case without further action;
(b) take any follow-up action in accordance with the AFRCO that the AFRC considers appropriate; or
(c) impose a sanction on, or take an action in relation to, the Regulatee investigated under the AFRCO.
For details of the AFRC’s investigation process, please refer to:
