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HKICPA Annual Auditing Update 2025: Embracing Changes in a Sustainable Future
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Join us for a virtual conference on 18 October, where you will gain key insights into the latest auditing and assurance topics. The conference will cover the updates from the International Auditing and Assurance Standards Board (IAASB), the revised ISA/HKSA 240 on fraud, HKSA 570 (Revised 2024) on going concern, the HKSA for less complex entities and sustainability assurance and ethics. Register now to enhance your expertise and engage with the latest developments in auditing.
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HKICPA Ethics Conference 2025: Navigating technology, trust, and integrity
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Join us for the Institute’s inaugural Ethics Conference on 15 October, featuring presentations and panel discussions on critical topics, including the ethical implications of artificial intelligence, fraud management, professional ethics and the Integrity Compliance Management System.
This conference is free for Institute members and students and will be held in both face-to-face and live webinar formats. Register now to secure your place at this pioneering ethics-focused event.
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E-learning: Navigating the latest accounting updates: Insights for SMEs and SMPs
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Enrol in the e-learning session to learn about the latest developments in accounting standards that are relevant for small and medium-sized enterprises (SMEs) and small- and medium-sized practices (SMPs). This e-learning covers the following:
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- A recap of the financial reporting frameworks applicable to SMEs;
- An overview of the revised HKFRS for Private Entities Accounting Standard (revised PE Standard);
- A deep dive into the major changes to Section 11 Financial Instruments and Section 23 Revenue from Contracts with Customers of the revised PE Standard;
- An introduction to HKFRS 19 Subsidiaries without Public Accountability: Disclosures – reduced disclosure requirements for eligible subsidiaries; and
- Practical FAQs from SMEs/SMPs
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The Institute’s Financial Reporting Standards Committee meeting minutes
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Minutes of the May 2025 meeting is now available.
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Narrow Scope Amendments to the ISQMs, ISAs, and ISRE 2400 (Revised) as a Result of the Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code
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The IAASB has released narrow scope amendments to its standards, revising the definition of a listed entity to align with the definition in the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants (including International Independence Standards). The new definition will amend the International Standards on Quality Management and International Standards on Auditing. In addition, amendments to International Standard on Review Engagement 2400 (Revised), Engagements to Review Historical Financial Statements, aim to align with the IESBA Code of Ethics regarding certain public disclosures about the application of independence requirements.
The narrow scope amendments:
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- Adopt the same definition of publicly traded entity (PTE) in the ISQMs and ISAs as adopted in the IESBA Code of Ethics, while recognizing the role of local standard setters and regulators in defining PTEs for their jurisdictions.
- Incorporate an overarching objective for differential requirements for PTEs in the ISQMs and ISAs and a framework for when it may be appropriate to apply such requirements to other entities.
- Amend the applicability of the existing requirements for audits of listed entities to apply to audits of PTEs.
- Add a new requirement in ISRE 2400 (Revised) for public disclosure in the practitioner’s review report when the practitioner applied independence requirements specific to reviews of financial statements of certain entities, such as public interest entities.
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Throughout the development of these amendments, the IAASB maintained close collaboration and coordination with IESBA, striving to align key concepts in the IAASB’s and IESBA’s standards, to the greatest extent possible. The IAASB has published a Basis for Conclusions to assist its stakeholder understanding and implementing the narrow scope amendments.
The narrow scope amendments will take effect for engagements for periods beginning on or after 15 December 2026. This effective date aligns with the effective dates for the IAASB’s recently revised standards on going concern and fraud, ISA 570 (Revised 2024) and ISA 240 (Revised), respectively. Together, these standards provide a stronger, more coordinated response to the risks of fraud and financial distress. The Institute will follow its due process for the convergence and adoption of the standard.
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Rethinking auditor skills and education
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As artificial intelligence redefines the audit profession, the skills required to excel are undergoing a significant change. This was the resounding message from a landmark roundtable in June 2025, co-hosted by the IAASB, which brought together audit professionals, educators, and regulators to examine how accountancy education must evolve in the face of accelerating technological change.
This article summarizes key insights from the roundtable on AI implications for auditor skills and competencies and initial professional education and development. A previously published article titled Embracing the AI Frontier: The Transformative Impact of AI on Audit Firms & Methodologies shares insights and tips for audit firms as they consider evolving their methodologies.
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HKICPA Ethics E-learning: Exploring the Fundamental Principles and Independence Requirements of the Code
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This e-learning session delves into the fundamental principles and independence requirements outlined in the HKICPA Code of Ethics for Professional Accountants. The expert speaker elaborates on their significance and practical application, and provides insights on how to navigate ethical situations through case studies and illustrative examples.
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Reminder: IESBA Ethics & Independence Conference 2025 - Ethics and Audit Independence: Pillars of Resilience and Competitiveness in Turbulent Times
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Join international leaders from diverse backgrounds at the IESBA Ethics & Independence Conference on 15 September. More than 700 participants have registered, representing 96 jurisdictions across six continents.
The conference will address global trends and explore how ethics and independence can foster trust, resilience, and competitiveness in times of uncertainty. Sessions will cover how the accounting profession, business leaders, and regulators are responding to global challenges, navigating regulatory shifts, embedding ethical culture, adapting to technology and AI, and reinforcing integrity in the fight against financial crime.
While in-person registration is now closed, virtual participation is available. Click here for the full program, list of speakers and registration details.
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HKICPA ethics resource centre
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Access resources and publications at the Institute’s Resource Centre to the Code where you can stay informed about the latest ethics pronouncements. Watch this video to learn how to easily access these valuable resources.
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Institute implementation support for HKSSA 5000
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The Institute is committed to equipping stakeholders with the professional knowledge required to navigate the evolving sustainability landscape. To support the implementation of HKSSA 5000 General Requirements for Sustainability Assurance Engagements, we have developed the following multi-faceted resources:
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- Staff publication: Questions and Answers (Q&As) on HKSSA 5000, General Requirements for Sustainability Assurance Engagements – These Q&As should be read in conjunction with the Institute’s HKSSA 5000 and are intended for general guidance only. They do not necessarily reflect the views of the Standard Setting Department, the Institute, the Council, or any of its committees.
- Sustainability assurance workshops: Responding to Risks of Material Misstatement – The final session on 17 September will address procedures for managing risks of material misstatement during planning, concluding, and reporting stages.
- E-learning: Overview of HKSSA 5000, General Requirements for Sustainability Assurance Engagements – This session provides a comprehensive overview of the new assurance standard, covering fundamental principles and concepts, engagement acceptance and continuance, group sustainability assurance engagements and the use of the work of others.
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IESBA new guidance to support implementation of standards on external experts and sustainability assurance
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The IESBA has released two new staff publications to enhance understanding and support global adoption and implementation of its ethics standard on Using the Work of an External Expert, as well as the International Ethics Standards for Sustainability Assurance (IESSA), both of which are effective from December 2026:
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Reminder: ISSA 5000 webinar series
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The IAASB will launch a new ISSA 5000 webinar series titled ISSA 5000 in Focus in October. Registration is now open. Offered at two different times to accommodate a global audience, each webinar will cover an explanation of ISSA 5000 requirements, practical implementation insights, real-world examples, and solutions to common challenges.
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- 1 / 2 October: Foundational principles and concepts – This session will set the tone for a successful sustainability assurance engagement. IAASB experts will discuss the fundamental concepts and principles of ISSA 5000, its scope, authority, and why it was developed.
- 7 / 8 October: Engagement planning, risk assessment & response – Planning, risk assessment and response are at the heart of delivering robust sustainability assurance. This session will explore the key elements of an effective strategy and engagement plan under ISSA 5000, and the essential aspects of identifying and assessing the risks of material misstatement and designing procedures to respond to those risks.
- 14 / 15 October: Concluding and reporting on sustainability assurance engagements – The assurance engagement culminates in the practitioner’s conclusion about whether the sustainability information is free from material misstatement. This session will guide participants through the final stages of the engagement process under ISSA 5000, including evaluating evidence, forming a conclusion, and preparing an assurance report.
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New Integrated Reporting and Thinking webpage
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Following its consolidation with the Value Reporting Foundation in 2022, the IFRS Foundation assumed responsibility for the Integrated Reporting Framework and its related resources. Since then, these assets have continued to inform the standard-setting work of the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) where relevant.
As a further step towards integrating these resources into the work of the IFRS Foundation, a new IFRS Foundation webpage has been launched to bring together legacy and updated resources in one place. This webpage is dedicated to support the understanding and implementation of integrated reporting and integrated thinking, alongside relevant IASB and ISSB Standards.
What you’ll find in the new webpage:
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- Integrated Reporting Framework
- Integrated Thinking Principles
- Resources such as FAQs and examples
- Illustrative materials on how Integrated Reporting can be used alongside ISSB Standards
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2025 IFRS Sustainability Symposium
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The 2025 IFRS Sustainability Symposium will take place under the theme "Pathways to Adoption” on 30 October in London. This premier event will offer insights into sustainability disclosure and the opportunity to connect with ISSB members and technical staff. Watch the video for a preview of the connections and learning available at this year’s event.
Two keynote speakers have been confirmed: Charlotte Jones, Group CFO at Aviva, and Jean-Paul Servais, Chairman of the International Organization of Securities Commissions (IOSCO).
This year's event will delve deeper into the implementation of sustainability disclosure standards. It will feature breakout sessions offering expert insights to guide you through the implementation process. Featured sessions include:
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- Strategic benefits of adopting ISSB Standards from corporate, investor and regulatory perspectives
- Why connectivity with financial statements matters and how it works
- Enhancing industry-specific disclosures
- Sustainability information that supports investor decision-making
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Registration is open for both virtual and in-person participants. Book by 12 September to receive an early bird discount. Visit the conference website to see the latest agenda and register.
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HKFRS S1 and S2 Implementation Platform
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You are welcome to submit technical questions related to the implementation of HKFRS S1 and S2. Questions that meet the submission criteria will be considered for discussion at the next meeting in November. The deadline for submissions is 21 October.
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Announcements from the Hong Kong Exchanges and Clearing Limited (HKEX)
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The HKEX has announced forthcoming enhancements to its margin collateral arrangements at its securities and derivatives clearing houses, as part of the ongoing commitment to boost market efficiency and lower costs for market participants. The new arrangements, which will take effect from 2 October, include changing how HKEX calculates the interest paid on cash margin collateral, and lowering accommodation charges for non-cash margin collateral posted at HKEX’s clearing houses.
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Announcements by the Inland Revenue Department
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Members may wish to be aware of the following matters:
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Announcements by the government
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Members may wish to be aware of the following matters:
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Anti-money laundering (AML) notices and news
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AML notices:
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Other AML news:
- Hong Kong Customs detects case of non-registered precious metals and stones dealer carrying out specified transactions (3 September and 5 September)
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