News Centre

The Accounting and Financial Reporting Council (AFRC) today issues the 2022 Annual Inspection Report on its inspections of public interest entity (PIE) auditors and non-PIE auditors completed from 1 April 2022 to 31 March 2023. 

In 2022, the AFRC inspected 55 PIE engagements, representing a nearly 50% increase when compared to 2020, in response to the unsatisfactory inspection results from previous years.   For the first time, 6 non-PIE engagements were inspected under the power given to the AFRC in the Further Reform.

Dr Kelvin Wong, Chairman of the AFRC concluded, “It is of utmost importance for firms to foster a culture of upholding audit quality. However, the AFRC noted a great degree of variance in the existence of such culture among firms, which we believe, is one of the root causes for the repeated deficiencies. While the AFRC cannot regulate firms' culture, we would like to urge the leaderships of the firms including Chairmen, Managing Partners and EQR to build and strengthen such a culture so as to assure public expectation of their professionalism and reliability.”

For details, please click here.