Updates and Insights

On 31 December 2024, the Hong Kong Accounting and Financial Reporting Council (AFRC) published a report titled "Inspection Insights – Root Cause Analysis and Remediation: A Call to Action for Quality Improvement”. This report aims to enhance Root Cause Analysis (RCA) and the remediation process in the auditing profession to elevate audit quality and ensure compliance with the Hong Kong Standard on Quality Management 1.

Auditors play a crucial role in bolstering stakeholder confidence within capital markets, as accurate and reliable information is vital for informed decision-making. The introduction of the System of Quality Management (SQM) is pivotal for enhancing audit quality, ultimately driving long-term value creation for all stakeholders involved.