Audit quality and audit fees are two key factors in assessing new appointments and reappointments of auditors, while audit quality is the key determinant. It is important to note that effective audit bidding encourages competition and stimulates innovation to reinvigorate the audit approach. And audit methodology, which can be very helpful in achieving audit quality. As for the assessment of audit fees, they should be kept at an appropriate level without compromising audit quality.

In the future role of the audit committee, it is expected that the assessment of auditor independence and objectivity, as well as the review of significant financial reporting issues and judgments, can be done in cooperation with other regulatory bodies, such as the SFC, HKEX and ICAC, to promote the active adoption of these guidelines by the audit committee. Also actively promote the involvement of the audit committee and other stakeholders in these guidelines

Seminar Outlines:

• 6 key factors for evaluating a potential auditor

-Governance and leadership

-Compliance with relevant ethical requirements

-Industry knowledge and technical competence

-Engagement performance

-Communication and interaction with the audit committee

-Monitoring process

• Additional considerations in auditor reappointment

-Audit effectiveness

-Interaction with the audit committee

-Other considerations

-Relationship between the auditor management of the listed entity

• How to assess audit fee

-Size and structure of the entities

-Nature and complexity of the entities’ businesses

• How to run an effective audit tender

#FRC #Auditors #HKiNEDA #webinar

Thank you, Mr. Ambrose Wong, Ms. Tracy Chan and Mr. Roy Lo for sharing your time and experience!