HK Watchdog Warns Over Rise in Company Auditor Resignations

The Accounting and Financial Reporting Council says it’s growing concerned over a surge in auditors of listed companies resigning just one month before or even after the end of the reporting period, according to an open letter issued Thursday.

• Audit quality may be compromised by late resignations because the incoming auditor will have limited time to plan and conduct a proper audit in order ahead of the reporting deadline, group says in the letter
• Such resignation have increased to 107 in 2022 from 71 last year: AFRC
  • 60% of the cases were due to the outgoing auditor’s inability to agree ...