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The Accounting and Financial Reporting Council (AFRC) today publishes its report Roundtable Discussion on Audit Quality and Climate-integrated Audits in Hong Kong. The report summarises insights gathered from roundtable discussions with investors, members of audit committees, and auditors of listed companies.  The discussions focused on audit quality of Hong Kong listed companies and the threat posed to them by stagnation of audit fees and opportunistic changes of auditors.  The discussions also covered current limitations of climate-integrated financial reporting and audit in Hong Kong and the need for independent assurance of sustainability reporting. The report presents a three-prong call to action for these stakeholders to foster better quality of financial reporting and audit.

Ms Janey Lai, CEO of the AFRC said, “The roundtable discussions provided valuable insights for the AFRC to better understand the perceptions of stakeholders regarding factors that impact audit quality, and to develop meaningful guidance.  A concerted effort of auditors, members of audit committees and investors is needed to boost the awareness of the importance of high-quality audit, as well as to improve overall audit quality.  Setting the right tone at the top at the audit firm is a prerequisite to nurturing a quality-focused culture.”

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