Hong Kong Complaints Against Auditors Jump 83%, Watchdog Says

The number of complaints received by Hong Kong’s accounting watchdog increased 83% in the 12-month period ending in March, the Accounting and Financial Reporting Council says in a statement Monday.

• The number of investigation initiated jumped 88%
• Top potential misconduct included failing to obtain sufficient appropriate audit evidence (87%), to perform engagement quality control review (71%), and to exercise professional skepticism and judgment (63%): AFRC
  • In the year ended March 2023, AFRC selected 130 sets of financial statements for proactive review, initiating eight investigations or inquiries
• “The increasing number of investigations of public interest entity auditors’ potential failure to ...