A local accounting regulator has launched a quality control programme that is pushing Hong Kong to the forefront of world standards in auditing.
For the first time, an audit regulator has developed procedures to review how the newly created international standard on quality control is being applied in audit firms listed with the International Auditing and Assurance Standards Board.
Patricia McBride, executive director of the Hong Kong Institute of Certified Public Accountants, said other regional regulatory bodies worldwide were watching with interest.
'We are very much at the leading edge of this one,' she said.
While all other standards looked at how individual audits are done, the new standard will assess how companies can guarantee audit quality.
Ms McBride said it was the first time that standards looked at the firm's quality control procedure and would make sure the firm had the right number of staff, their training was sufficient, staff were sufficiently knowledgeable about the area they were working on, their workload was not too heavy and management had the right attitude.