Overview

The quality of financial reporting is challenged by economic distress and business uncertainties. This increases the importance of a quality audit as audits provide credibility to financial statements and give investors confidence in their truthfulness and fairness. Auditor selection and appointment as well as audit fee setting are key in upholding audit quality, which is intricately linked to corporate governance. The ability to maintain a high standard of audit quality and corporate governance is crucial for the long-term success of financial markets.

In this webinar, Accounting and Financial Reporting Council (AFRC), the independent regulator of the accounting profession in Hong Kong, will provide key insights on best practices for selecting auditors and setting audit fees. It will also cover recommended actions for key stakeholders such as auditors, listco management, the Board, and investors. These best practices are critical in driving resilience and success in Hong Kong's capital markets. The webinar serves as a valuable resource for navigating the complex process of setting audit fees, and the selection and appointment of auditors in today's challenging financial landscape.

Content

Key topics to be covered:

• The role of AFRC;
• How auditor appointment and setting of audit fees are relevant to the capital markets;
• Considerations for selecting and appointing auditors;
• Considerations for setting adequate audit fees; and
• Practical recommendations on actions for investors in the event of auditor resignation.

Background information:

About the AFRC
AFRC is an independent body established under the Accounting and Financial Reporting Council Ordinance. As an independent regulator, AFRC spearheads and leads the accounting profession to constantly raise the level of quality of professional accountants, and thus protects the public interest. For more information about the statutory functions of the AFRC, please visit https://www.afrc.org.hk.

Recommended reading
In March 2023, AFRC published two reports on the appointment of auditors by audit committees and on audit fees in Hong Kong.

• The 2023 Survey Report on the Implementation of the Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors (the Survey Report)

• The Audit Fees Paid by Listed Companies in Hong Kong 2020-2021 (the Audit Fees Report)

Who should attend

Senior management and Board members, audit committee members, shareholders and investors of listed companies, auditors