Hong Kong-listed companies may miss March 31 reporting deadline as Covid-19 depletes auditors

The tidal wave of Covid-19 infections sweeping Hong Kong and a possible citywide lockdown in the coming weeks mean listed companies could miss the important March 31 deadline for reporting their financial results, accountants have warned.

Accounting industry bodies have met with financial regulators to air their concerns that a hit to their staffing levels might make it impossible to complete the auditing process in time.

Some firms have seen about 10 per cent of their auditors struck down by the coronavirus or quarantined in the last two weeks, according to executives of several accounting firms, who did not wish to be identified.

“The increasing number of staff that got infected has resulted in a disruption as the infected staff need to take sick leave and cannot go to the offices of the clients to do the audit – it’s supposed to the busiest time for auditors,” said Clement Chan, chairman of the Hong Kong Association of Registered Public Interested Entity Auditors, the industry body that represents the auditors of all listed companies in Hong Kong.

Chan said the association has already met with Hong Kong Exchanges and Clearing (HKEX), that runs the stock exchange, and the Securities and Futures Commission to express its concerns.