Overview
PIE Engagements
Under the Accounting and Financial Reporting Council Ordinance (AFRCO), the AFRC has the power to direct an inspector to carry out an inspection in relation to the PIE engagements completed by a PIE auditor on or after 1 October 2019 for the purpose of ascertaining whether the PIE auditor has complied with, or is likely to be able to comply with: (i) a provision of the AFRCO; or (ii) a professional standard.
Inspection Department is responsible for carrying out inspections with the objectives of monitoring and promoting audit quality. An inspection in relation to a PIE auditor focuses on how a PIE auditor conducted PIE engagements and on the effectiveness of the PIE auditor’s quality control system to determine whether the applicable professional standards and legal and regulatory requirements have been complied with. All PIE auditors that undertake PIE engagements are subject to inspections.
Engagements other than PIE Engagements
Under the Accounting and Financial Reporting Council Ordinance, the AFRC has the power to direct a CPA inspector to carry out an inspection in relation to a practice unit for the purpose of determining whether the practice unit has (i) observed, maintained or applied Professional Accountants Ordinance professional standards; and (ii) complied with the anti-money laundering and counter-terrorist financing requirements applicable to accounting professionals.
Inspection Department is responsible for carrying out inspections with the objectives of monitoring and promoting audit quality. An inspection in relation to a practice unit focuses on whether a practice unit is acting in accordance with Professional Accountants Ordinance professional standards. All practice units that undertake engagements other than PIE Engagements are subject to inspections.
Further details of the inspection function are set out in the following policy statements;
- Policy Statement for Inspection of PIE Auditors with respect to PIE Engagements
- Policy Statement for Inspection of Practice Units with respect to engagements other than PIE Engagements
- Policy Statement for Inspection of Practice Units with respect to compliance with Anti-Money Laundering and Counter-Terrorist Financing Requirements
If you have any questions relating to inspection, please refer to Frequently Asked Questions or contact us by:
Email: [email protected]
Tel: +852 2810 6321
Fax: +852 2810 6320
