Hong Kong’s accounting regulator urged auditors handling initial public offerings to assess whether they have sufficient resources and expertise, warning that a surge in listing activity could put pressure on quality.
In an open letter, the Accounting and Financial Reporting Council said that some auditors of public interest entities serving as reporting accountants for Hong Kong IPO applicants have taken on exceptionally high listing workloads alongside existing mandates. That raised concerns that they may not have sufficient expertise and resources to meet professional standards without compromising quality.
“Public interest entity auditors are strongly urged to immediately undertake a thorough evaluation ...