News Centre

The Accounting and Financial Reporting Council (AFRC) today publishes an article titled Continuing Professional Development as a Key to Improving Audit Quality in Hong Kong to highlight the importance of continuing professional development (CPD) in ensuring audit quality and improving staff retention.  

The article, referencing relevant empirical research and analysing the current trends in the accounting profession, highlights the link between CPD and audit quality in the context of the need for auditors to acquire new skills and the ongoing transformation of the audit profession.  It points out that with the development of new technologies such as artificial intelligence, the increasing need for ESG and climate expertise, and continuing changes in accounting and auditing standards, firms are presented with enormous business opportunities if they focus on CPD as a strategic component of the delivery of high-quality audits and talent management.

Ms Janey Lai, Acting CEO of the AFRC, remarks, “We acknowledge the challenges of talent management faced by audit firms.  However, amidst the talent shortage, CPD is even more critical to uphold audit quality and hence firms’ reputation. Senior leaders of audit firms should view talent management, particularly CPD, as a core strategic component of their firm and an ethical obligation to their staff, the profession, and the public. In this way, not only audit quality is upheld, but also staff morale is boosted, which is conducive to the sustainable and healthy development of their firms and collectively the accounting profession.”

For details, please click here.