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HONG KONG -- A memorandum of understanding (MoU) to promote cross-boundary cooperation on audit regulation between Hong Kong and the mainland was signed here Wednesday.
The MoU was signed between the Supervision and Evaluation Bureau (SEB) of the Ministry of Finance and the Financial Reporting Council (FRC) of the Hong Kong Special Administrative Region.
Hong Kong and the mainland will expand cooperation in audit regulations based on the principle of mutual reliance under the MoU. Both parties will strengthen exchanges of information in respect of their audit regulatory responsibilities to enhance regulatory efficiency.
According to the MoU, the FRC will be able to make request under the MoU to the SEB for assistance in gaining access to audit working papers of Hong Kong audit firms located in the mainland.
It"s a mutual request for cross-boundary cooperation on audit regulation as the connectivity of the financial markets between the two sides is growing, said Gao Jinxing, SEB"s director general.
When the Financial Reporting Council (Amendment) Ordinance 2019 takes effect, the FRC will be vested with the direct powers of inspection, investigation and discipline concerning auditors of listed entities, said Kelvin Wong, chairman of the FRC.
"It"s indeed an opportune time for us to sign the MoU with the SEB. The MoU facilities us in enhancing our efficiency in discharging our duties in respect of inspection and investigation as an effective independent auditor regulator," said Wong.