Nov 19, 2025
A report on “Global Developments in Audit Regulation: Key Insights for Hong Kong” was published by the Accounting and Financial Reporting Council (AFRC) . In this report, the AFRC examines audit regulatory practices across six jurisdictions: Australia, Canada, the Chinese Mainland, Hong Kong, the United Kingdom, and the United States.
The study aims to ensure that Hong Kong’s audit regulation actively upholds the integrity of its evolving capital market. It focuses on four key areas:
Strengthening systems of quality management (SQM) through registration: How registration requirements are being used to strengthen firm-wide systems and processes, not just individual competence;
Inspections: Emphasising firm culture and transparency: Why inspections now look beyond technical compliance to include leadership tone and transparency of inspection results;
Enhancing accountability through responsive, proportionate enforcement: How enforcement is evolving to balance deterrence with remediation; and
Strategic Priorities: Future-proofing the profession for a digital age: What regulators are doing to understand as well as prepare the profession for new technologies, digital assets and other emerging challenges.
The study supports one of the AFRC’s key strategic priorities, “Evolving regulations to meet current needs”, by enabling a better understanding of emerging trends and identifying opportunities for enhancement.
The study confirms that the AFRC’s regulatory framework is firmly aligned with international practices and reflects its commitment to transparency and audit quality. It provides the profession with a clear view of where Hong Kong stands and strengthens confidence in the regulatory framework.
Please click the following for the Report