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Financial and Monetary Affairs

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

Bankruptcy Orders

Interim Orders in IVAS

Winding-up Orders

2014

2015

2016

9,674

9,750

8,919

798

588

501

271

305

325

Professional Accountancy

The Hong Kong Institute of Certified Public Accountants, established under the Professional Accountants Ordinance, registers certified public accountants (CPAs); carries out practice reviews and regulates the professional conduct and standards of members; sets and maintains financial reporting, auditing and ethical standards for the profession; and conducts training and qualifying examinations.

Statistics on CPAs, CPA firms and corporate practices

2014

2015

2016

Total number of CPAs

38,426

39,201

40,806

Number of practising CPAs

4,353

4,428

4,598

Number of practising CPA firms

1,275

1,267

1,284

Number of corporate practices

467

491

524

The institute issues the Hong Kong Financial Reporting Standards, which 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, investigates Hong Kong-listed entities' non-compliance with accounting standards as well as their auditors' auditing and reporting irregularities. The council reviews financial reports using a risk-based approach and screens modified auditor's reports of financial statements of entities listed in the city.

Statistics on FRC's work

Number of modified auditors' reports

2014

2015

2016

171

174

178

screened

Number of financial reports reviewed under

34

42

43

risk-based approach

Number of investigations completed's

4

9

11

Number of enquiries completed16

1

1

15

16

The FRC is empowered under the Financial Reporting Council Ordinance to conduct independent investigations into possible auditing and reporting irregularities in relation to listed entities.

The FRC is also empowered under the ordinance to conduct independent enquiries into possible non-compliance with accounting requirements on the part of listed entities.

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