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(b) under the Companies Ordinance and the SEHK Listing Rules, every listed company must appoint independent professional accountants as auditors who must verify, in accordance with auditing standards, whether the financial statements of the company are in compliance with accounting standards and give a true and fair view. Therefore, the audit requirement has already provided a check on a company's compliance with the accounting standards.

In addition, the SEHK has also reviewed the listing rules of many other exchanges for similar requirements and has learnt that these exchanges also do not have any mandatory requirement for the appointment of an accountant as finance officer of a listed company.

The Administration is of the view that from a public interest angle, it is the external audit requirement (and the separation of duties) which would assure the quality of financial statements prepared by the company, rather than the qualification of the persons responsible for the finance function within the company. Having regard to this and against the background of the SEHK's study mentioned above, the Administration has no plans at this stage to request the SEHK and the Securities and Futures Commission to consider introducing regulations requiring all listed companies to engage professional accountants at the senior management level.

Finally, the SEHK Listing Rules do not require that the secretary of a listed company must be either a professional accountant, lawyer or Chartered Secretary. Instead, it also allows the secretary to be an individual who, by virtue of his academic or professional qualification or relevant experience, is, in the opinion of the SEHK, capable of discharging the functions. There is at present also no requirement for a listed company to have an audit committee.

Drivers are encouraged to switch off engines while waiting

Following is a question by the Hon John Tse and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council whether it has considered introducing legislation requiring motorists to switch off the engines of vehicles while waiting so as to reduce vehicle emissions, thus causing less air pollution; if not, why not?