The Mandatory Provident Fund Schemes Authority has issued a supervisory directive reiterating that administrators and employers of occupational retirement schemes must conduct due diligence before appointing or reappointing scheme auditors. The directive follows disciplinary action by the Accounting and Financial Reporting Council against an audit firm and its engagement director for deficiencies in statutory audit and assurance engagements relating to two occupational retirement schemes. Under the Occupational Retirement Schemes Ordinance, administrators bear primary responsibility for safeguarding members’ interests and ensuring schemes are properly managed and meet statutory requirements. This includes appointing duly qualified auditors with the necessary competence and expertise, and ensuring audited financial statements and auditors’ reports comply with statutory requirements. These safeguards help identify potential weaknesses or noncompliance and provide assurance on scheme financial reporting.
Hong Kong's Mandatory Provident Fund Schemes Authority reiterates auditor due diligence requirements for occupational retirement schemes
Hong Kong’s Mandatory Provident Fund Schemes Authority has reiterated the requirement for occupational retirement scheme administrators and employers to conduct due diligence before appointing or reappointing auditors. Its supervisory directive follows disciplinary action by the Accounting and Financial Reporting Council against an audit firm and its engagement director for deficiencies in audit and assurance engagements involving two schemes.