Government agrees to pay HK$300 million for Hong Kong’s biggest audit reform in a decade
- The cash will enable the Financial Reporting Council to triple its staff, who will keep an eye on the auditors of 2,000 listed companies in Hong Kong
The Hong Kong government has agreed to pay HK$300 million (US$38 million) towards the biggest overhaul of accountancy regulation in a decade.
The money will enable the watchdog, the Financial Reporting Council, to triple its headcount to inspect, investigate and discipline auditors in more than 2,000 listed companies, according to newly appointed chairman Kelvin Wong Tin-yau.
Wong said he expected lawmakers to vote in March for reforms that would see the toothless Financial Reporting Council transformed into a fully empowered independent regulator of auditors in the second half of 2019.
“This will be an important reform of the regulation of auditors, who act as a gatekeeper to the quality of the listed companies’ financial statements. This will bring Hong Kong in line with international standards,” Wong said in an interview.
Wong, who is Cosco Shipping Port's executive director and deputy managing director, took up his latest role from former chairman John Poon. The council requires the chairman to be a non-accountant, to ensure its independence.