• Register
Return to: Home > News > Regulation > HKICPA opposes auditor's criminal liability law

HKICPA opposes auditor's criminal liability law

The Hong Kong Institute of Certified Public Accountants (HKICPA) said it is against a proposed law introducing criminal liability for poor audit work.

A clause contained in a Companies Amendment Bill will make the previously-self-regulating profession criminally liable in case the auditor “knowingly or recklessly” omits a required statement.

HKICPA chief executive Winnie Cheung said consequences and harm to the profession would be huge if the law is passed.

Instead the institute has proposed to amend the prosecution threshold introducing liability only when an omission is committed “dishonestly or with intent to defraud”.

HKICPA pointed out the clause will not actually apply to non-Hong Kong companies, which represent 75% of the market capitalisation of the Hong Kong stock exchange.

However, talented young members of the profession will seek other career options with fewer risks and the quality of the profession will suffer, Cheung said.

“Imposing a criminal liability on the managerial positions will only aggravate the job pressures and push aspiring young professionals away from public accounting service.

It will gravely impede the healthy development of the audit profession,” Cheung concluded.


Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.