The Government is under attack from senior representatives of the accounting profession over moves which would compel auditors to report their clients to regulators if they unearth any corporate misconduct.
Eric Li Ka-cheung, who represents the accountancy profession in the Legislative Council, accused the Government of being 'simplistic' and said it was more interested in 'pushing through the measures quickly rather than getting the right legislation'.
Hong Kong Society of Accountants professional standards director James Fawls said the moves 'went beyond the public interest' and suggested the proposals would place an 'unfairly large burden on auditors'.
It was revealed in the Governor's policy speech on Wednesday that the Financial Services Branch was planning to introduce legislation increasing auditor responsibilities.
The proposed legislation had been designed to ensure corporate fraud was reported to the Securities and Futures Commission (SFC) and other regulators, the Government said.
Mr Li accused the Government of taking 'a simplistic approach which would in my mind create more of a negative impact than a positive result'.