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Invitation to comment |
The Institute is seeking comments on Proposed Hong Kong Standard on Auditing for Audits of Financial Statements of Less Complex Entities (HKSA for LCE). The proposal is to modify Part A of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) issued by the International Auditing and Assurance Standards Board’s (IAASB) regarding the authority of the standard concerning the scope of the proposed HKSA for LCE in a local context, which includes:
- Refining the classes of entities prohibited from using the proposed HKSA for LCE to entities having public interest characteristics within a Hong Kong context.
- Establishing quantitative thresholds to determine the appropriate use of the proposed HKSA for LCE within a Hong Kong context.
Watch the video to understand the proposed standard. You may submit your views via email or participate in the survey by 17 November. The IAASB has also issued the following:
- ISA for LCE – Authority Supplemental Guidance: This resource helps users in determining the appropriate situations to use the ISA for LCE, which further explains relevant matters and circumstances in accordance with Part A of the standard.
- ISA for LCE – Adoption Guide: This guide supports jurisdictions in adopting the ISA for LCE by providing valuable insights into the adoption process. It highlights common steps and successful approaches, and addresses potential challenges.
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HKICPA Audit Practice Manual (APM) (2024 edition) |
The APM 2024 edition has been updated to align with the requirements of HKSA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors). Click here to explore the new features. Members may register for the e-learning recording that provides an overview of the HKSA 600 (Revised).This session covers key changes from current practices and their impact to group audit engagements. Access to the Institute’s resource centre for the pronouncements, guides and articles that are relevant to the standard. |
Audit focus for 2024 year-end audits |
The Accounting and Financial Reporting Council (AFRC) has released Audit Focus for 2024 Year-End Audits, providing guidance to auditors in effectively identifying and responding to the elevated risks in financial reporting and auditing created by the current uncertain economic conditions. Critical reminders to auditors are also provided in this publication to ensure that audit quality is upheld for the upcoming year-end audits. |
Importance of sustainability assurance |
The International Federation of Accountants (IFAC) has released a video titled “Why is Sustainability Assurance Important?”. This video explains why sustainability assurance is important to both new and veteran investors. It is part of the World Investor Week series which is intended to help investors grasp the fundamentals of accounting, allowing non-accountants to better understand how accounting and investment intersect. For those interested in learning more about other accounting fundamentals, please see the IFAC’s work for World Investor Week 2023, 2022 and 2021. These informative videos aim to clarify the role of accountants and highlight the importance of their work to investors. |
New technology position to shape the future of audit and assurance standards |
The IAASB has introduced a new Technology Position that will guide how it adapts its work to embrace the intersection of audit, assurance, and technology. This new position marks a significant step forward in the IAASB’s ongoing commitment to enhancing the quality and relevance of its standards amid rapid technological advancement. |
Navigating the future of audit in a digital age |
As emerging technologies reshape the audit profession, it is crucial for audit practitioners to stay ahead of trends. The Audit and technology playbook: A practitioner’s guide, developed by Chartered Accountants Australia and New Zealand (CA ANZ) and the Association of Chartered Certified Accountants (ACCA), offers a comprehensive resource to help auditors adapt and thrive in this changing landscape. |
E-learning: Solicitors’ accounts rules and PN 840 reporting engagements |
Register for the e-learning that:
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Institute webinar series: Towards an effective and efficient audit |
Join the following webinars to refresh and enhance your auditing knowledge. Experienced speakers will highlight key requirements through illustrative examples and discuss common pitfalls identified in recent AFRC inspections. |
- 23 October: Auditing sampling and journal entry testing
- 29 October: External confirmations and audit documentation
- 20 November: Auditing opening balances and related parties
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Virtual Conference: Annual Auditing Update 2024: Navigating the Evolving Landscape Together |
Enrol in the conference on 26 October, which will cover topics including:
- Updates on the IAASB projects on fraud and PIE Track 2 project
- Overview of the proposed HKSA for LCE
- Key changes and requirements of HKSA 600 (Revised)
- Updates on local ethics and International Ethics Standards Board for Accountants’ (IESBA) projects, including the definitions of listed entity and public interest entity and ethics survey observations
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Industry specific events in November |
Register now to gain updates and implementation tips in the following areas: Industry Update Relating to Investment Funds (11 November): This session will feature insights by speakers from the Securities and Futures Commission, the Mandatory Provident Fund Schemes Authority and a Big Four firm. They will provide an overview of the newly developed investment products of digital assets and tokenization of investment funds, discuss the latest developments of the eMPF, and explore how funds, wealth and asset managers are leveraging GenAI. Workshop on Audit of Licensed Corporations and Associated Entities of Intermediaries (14 November): This session will cover: |
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The Institute’s Auditing and Assurance Standards Committee meeting |
Minutes of the 419th meeting are now available. |