ENG-2013 — Page 115

Hong Kong Year Books 香港年報 All

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Financial and Monetary Affairs

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); 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 in Hong Kong

Number of CPA

Of which: CPA (Practising)

Number of firms of CPA (Practising)

Number of corporate practices

2011

2012

2013

32,636

34,423

36,094

3,851

4,012

4,166

1,214

1,228

1,246

365

392

427

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

The Financial Reporting Council (FRC), a statutory body established under the Financial Reporting Council Ordinance, is responsible for investigating Hong Kong fisted companies' 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 Hong Kong.

Statistics on FRC's Work

2011

2012

2013

Number of complaints received

7

19

20

Number of modified auditors' reports screened

131

138

168

Number of financial reports reviewed under

70

75

75

risk-based approach

Number of investigations initiated

Number of investigations completed

Number of enquiries initiated

Number of enquiries completed

10 5 ~ ~

2

am-

6

9

7

5

9

5

1

3

1

2

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

Monetary Policy

Hong Kong's monetary policy objective is currency stability, defined as a stable external exchange value of the currency of Hong Kong, in terms of its exchange rate in the foreign

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