TNAG-1362-FCO40-1808-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 221

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depth - which is why the examination has taken a long time the position in a 'nutshell' is as follows:-

Firstly When the Professional Accountants

Ordinance was first enacted it took into

account the existence of the then existing

Authorised Auditors who were listed under

Section 131 (3) of the Companies Ordinance.

and

These Authorised Auditors were

recognised under Section 30 (4) and became

entitled to be issued with a practising

certificate. There was no residential

requirement for this group of

professionals who were permanent residents

of Hong Kong. This is their so called

'vested rights'. All other auditors,

which includes newcomers to the profession

in Hong Kong both Chinese and non-Chinese,

became subject to a residential

requirement.

Secondly Since the Professional Accountants

Ordinance first came into effect in 1973,

time itself will gradually reduce to zero

the number of Authorised Auditors, for

even Accountants are not immortal.

Thirdly

Although in theory an Authorised

Auditor could under the law

May

V

spend most

of his time out of Hong Kong, and continue

to hold a practising certificate, which

would be withheld normally from other

auditors as they would fail the

residential requirement in these

circumstances, on enquiry we could not be

furnished with any known abuse of this privilege.