The Hong Kong Institute of Certified Public Accountants will start a public consultation early next year on the proposed revamp of the Professional Accountants Ordinance, which has been in place for 42 years.
Based on the results of the consultation, the industry body will draft a bill that includes changes to the regulatory regime for auditors of listed entities, the Hong Kong Economic Journal reported on Tuesday.
The proposed changes have been part of the institute’s sixth long-term plan first announced in 2013, HKICPA chief executive Raphael Ding said.
Reforms that are not related to the regulatory regime for listed entity auditors, such as the qualifications framework for accountants, will be put in place first, Ding said.
The adoption of the tightened regulatory regime for auditors involves public interest, and therefore, the public must be consulted along with HKICPA members, he said.
The government has concluded its own consultation on the proposed regime tightening proposals, which have triggered opposition from small and medium-sized accounting firms.
Ding said the institute’s position is to require investors to bear the operating costs of an independent regulatory organization that is being proposed for the industry and to have a clear definition of the scope of the investigative and disciplinary powers of the new oversight body.
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