4

Financial and Monetary Affairs

distributes dividends to creditors. The OR also prosecutes insolvency-related offences under the Bankruptcy Ordinance and the Companies (Winding Up and Miscellaneous Provisions) Ordinance, applies for disqualification orders against unfit company directors of wound-up companies, and monitors the conduct of outside liquidators and trustees, and the liquidation monies.

Statistics on Bankruptcy Orders, Interim Orders in Individual Voluntary Arrangements (IVAs) and Winding-up Orders

Bankruptcy Orders

Interim Orders in IVAS

Winding-up Orders

2013

2014

2015

9,371

9,674

9,750

817

798

588

274

271

305

Professional Accountancy

The Hong Kong Institute of Certified Public Accountants (HKICPA), established under the Professional Accountants Ordinance, performs a wide range of functions, such as registering certified public accountants (CPAs); carrying out practice reviews and regulating the professional conduct and standards of members; setting and maintaining financial reporting, auditing and ethical standards for the profession; and conducting training programmes and qualifying examinations.

Statistics on CPAs, CPA firms and corporate practices

Total number of CPAs

Number of practising CPAs

Number of practising CPA firms

Number of corporate practices

2013

2014

2015

36,094

38,426

39,201

4,166

4,353

4,428

1,246

1,275

1,267

427

467

491

The Hong Kong Financial Reporting Standards, issued by the HKICPA, apply the International Financial Reporting Standards. This is beneficial to Hong Kong because international investors and financial analysts are well acquainted with these standards.

The Financial Reporting Council (FRC), a statutory body established under the Financial Reporting Council Ordinance, is responsible for investigating Hong Kong listed entities' non- compliance with accounting standards as well as their auditors' auditing and reporting irregularities. The FRC reviews financial reports based on a risk-based approach and screens modified auditor's reports of financial statements of entities listed in the city.

Statistics on FRC's work

2013

2014

2015

Number of modified auditors' reports screened

168

171

174

Number of financial reports reviewed under

53

34

42

risk-based approach

Number of investigations completed

Number of enquiries completed

52

4

9

1

A Process Review Panel reviews the FRC's handling of cases to ensure its actions and decisions comply consistently with established procedures.

80

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