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New rules make it all add up

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HONG KONG auditors will soon have to abide by stricter rules and a more extensive set of standards to judge whether a company's financial statements give a 'fair and true view'.

After three years preparing the new standards, the Hong Kong Society of Accountants (HKSA) plans to issue a total of 19 new mandatory standards for auditors in the next few weeks.

The new standards are based on recommendations from the International Federation of Accountants, which issued wider-ranging rules for auditors in 1994.

The HKSA at present has only two mandatory standards and a host of guidelines.

The first mandatory standard outlines audit approach.

One page long, it does little more than stress how audits must be impartial and should assess the accounting systems.

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