IFAC Response to FSTB Consultation Paper: Proposals to Improve the Regulatory Regime for Listed Entity Auditors

IFAC submitted a comment letter to the Financial Services and the Treasury Bureau (FSTB)'s Consultation Paper, Proposals to Improve the Regulatory Regime for Listed Entity Auditors. IFAC commends the FSTB on issuing a very thorough and thoughtful consultation paper that addresses a range of matters that aims to improve the regulatory regime for listed entity auditors in Hong Kong.

IFAC recognizes the importance of high-quality auditing and acts to promote and enhance audit quality around the globe. This includes supporting the development, adoption, and implementation of high-quality, internationally accepted auditing and quality control standards, promoting the need for global regulatory convergence where appropriate, and supporting the development of strong professional accountancy organizations and accountancy firms.

Given the critical role that auditing plays in the economy—in terms of being a mandated service that aims to enhance the credibility of financial reporting and providing benefits to the broader public well beyond those who are directly involved in the process—IFAC believes that the primary focus of regulatory reforms to auditing should be to enhance audit quality.

In an increasingly global and inter-connected economy, the need for globally recognized and consistent regulatory arrangements, where appropriate, is becoming more important. Global adoption and implementation of high-quality, internationally recognized, professional standards—such as International Standards on Auditing (ISAs) and the Code of Ethics for Professional Accountants—are an example of the importance of achieving such global consistency.