recognition of overseas auditors application and …...application and renewal procedures 1...

Recognition of Overseas Auditors

Application and Renewal Procedures

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Introduction

1. This document sets out the requirements and procedures for the recognition of an overseasauditor of an overseas entity in Hong Kong under Division 3 of Part 3 of Financial ReportingCouncil Ordinance (Cap 588) (FRCO).

2. The requirements and procedures in this document are not applicable to the Mainlandauditors endorsed in accordance with the mutual recognition agreement under section 20ZTof the FRCO.

Definition

3. In this document, save where the context otherwise requires, the following terms shall havethe meanings attributed to them:

• FRC means Financial Reporting Council.

• FRCO means Financial Reporting Council Ordinance (Cap 588).

• Listed entity has the same meaning as in section 3(1) of the FRCO, i.e. a listedcorporation or a listed collective investment scheme.

• Listing Rules means the Rules Governing the Listing of Securities on the StockExchange of Hong Kong Limited; or the Rules Governing the Listing of Securities onthe GEM of the Stock Exchange of Hong Kong Limited, approved by the Securitiesand Futures Commission under section 24 of the Securities and Futures Ordinance(Cap 571), and as in force at the material time.

• Overseas entity has the same meaning as in section 2(1) of the FRCO, i.e. (a) acollective investment scheme constituted under the laws of any place outside HongKong; or (b) a body corporate incorporated outside Hong Kong, whether or not thescheme or body is a listed entity.

• Public interest entity (PIE) has the same meaning as in section 3(1) of the FRCO, i.e.any listed entity except a listed corporation whose listed securities do not includeshares or stocks.

• PIE engagement has the same meaning as in Part 1 of Schedule 1A of the FRCO, i.e.any of the following types of engagement carried out by an auditor:

(a) An auditor’s report on a PIE’s annual financial statements required by theCompanies Ordinance (Cap 622), the Listing Rules or any relevant code issuedby the Securities and Futures Commission;

(b) An specified report required to be included in (i) a listing document for the listingof the shares or stocks of a corporation seeking to be listed or a listed corporation,

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or (ii) a listing document of a collective investment scheme seeking to be listed or a listed collective investment scheme;

(c) An accountant’s report required under the Listing Rules to be included in acircular issued by a PIE for a reverse takeover or a very substantial acquisition.

• PIE auditor has the same meaning as in section 3A of the FRCO, i.e. an auditor whoundertakes a PIE engagement (who, before doing so, is required to be registered orrecognized as a PIE auditor under the FRCO).

• Recognized PIE auditor has the same meaning as in section 3A of the FRCO, i.e. (a)an overseas auditor recognized under Division 3 of Part 3 of the FRCO; or (b) arecognized PIE auditor (provisional).

Undertaking and carrying out a PIE engagement

4. An overseas auditor must not “undertake” (i.e. accept an appointment for carrying out) anyPIE engagement for an overseas entity unless an application has been made in relation to therecognition of the overseas auditor as a PIE auditor; and the application has been granted.

5. An overseas auditor must not carry out any PIE engagement for an overseas entity unless theoverseas auditor has been recognized as a PIE auditor of that entity.

Recognition is specific to an overseas entity

6. The recognition of an overseas auditor is specific to the overseas entity who makes theapplication for recognition. Once the overseas auditor has been recognized and during theperiod in which the recognition takes effect, the overseas entity does not have to re-apply forrecognition if it appoints that recognized overseas auditor to carry out other PIE engagements.

7. Other overseas entities intending to appoint that particular overseas auditor to carry out aPIE engagement for them must make their own applications for the recognition of suchauditor.

Eligibility for recognition as a recognized PIE auditor

8. An application for recognition will not be granted unless:

(a) an overseas entity has obtained a statement of no objection from:

- the Hong Kong Exchanges and Clearing Limited for a corporation1, or- the Securities and Futures Commission for a collective investment scheme

1 For details of the application of the statement of no objection provided by the Hong Kong Exchanges and Clearing Limited, please refer to the Frequently Asked Questions issued by The Stock Exchange of Hong Kong Limited at:

https://en-rules.hkex.com.hk/sites/default/files/net_file_store/new_rulebooks/f/a/FAQ_059-067-2019.pdf

https://en-rules.hkex.com.hk/sites/default/files/net_file_store/new_rulebooks/f/a/FAQ_059-067-2019.pdf

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for appointing an overseas auditor to carry out a PIE engagement for it; and such statement has not been withdrawn;

(b) the overseas auditor is a member of, or registered with, an accountancy body that is amember of the International Federation of Accountants; and is subject to the regulationof an overseas regulatory organization recognized by the FRC; and

(c) the overseas auditor has adequate resources and possesses the capability to carry out aPIE engagement for the overseas entity.

9. The FRC may recognize an overseas regulatory organization for the purposes of paragraph8(b) of this document if it is satisfied that –

(a) the organization performs a function that is similar to a function of the FRC under theFRCO; and

(b) the organization is composed of a majority of persons who are independent of theaccountancy profession.

10. An overseas regulatory organization generally meets the requirements under paragraph 9 ofthis document, if it is:

(a) a member of the International Forum of Independent Audit Regulators; or

(b) from a jurisdiction which has attained equivalence status granted by the EuropeanCommission under Article 46 of the Statutory Audit Directive 2006/43/EC.

11. In assessing whether the overseas auditor has the resources and capabilities to carry out aPIE engagement for the overseas entity, the FRC may consider matters including, but notlimited to, the following:

(a) whether the personnel of the overseas auditor have knowledge of the relevantindustries in which the overseas entity operates;

(b) whether the personnel of the overseas auditor have experience with relevant regulatoryor reporting requirements;

(c) whether the overseas auditor has sufficient personnel with the necessary competenceand capabilities;

(d) whether technical experts, including but not limited to those with expertise in relevantinformation technology or other specialized areas of accounting or auditing, areavailable in the overseas auditor, if needed; and

(e) whether individuals of the overseas auditor meeting the criteria and eligibilityrequirements to perform engagement quality control review are available.

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Application procedures

12. If an overseas entity proposes to appoint an overseas auditor to carry out a PIE engagementfor it, the overseas entity must apply to the FRC for the recognition of the overseas auditoras a PIE auditor of the entity. The application procedures are as follows:

(a) Submission of an application

An overseas entity, as an applicant, is required to submit Application Form A –Information of the Overseas Entity together with the statement of no objection, and tocoordinate with the proposed overseas auditor for the submission of Application FormB – Information of the Overseas Auditor. Details of Application Form A andApplication Form B, and the fee schedule are set out in Appendix I and Appendix IIIrespectively.

Eligibility requirements for recognition as a recognized PIE auditor are set out inparagraph 8 of this document.

(b) Request to provide supplementary information

The FRC may require the applicant to provide supplementary information which theFRC considers relevant to the application. Unless otherwise specified, the applicant isrequired to respond in writing within 10 business days of the date of the requirement.

(c) Notification of the decision

The FRC will generally inform the applicant of its decision on the application bywritten notice within 30 business days of the date of application, if the FRC is satisfiedthat no supplementary information is required. A copy of the notice will also be sentto the overseas auditor specified in the application.

If the FRC approves the application, an approval-in-principle is granted by the FRCrecognizing the overseas auditor specified in the application as a PIE auditor of theoverseas entity. The approval-in-principle is valid for a 6-month period.

If the FRC refuses the application, the FRC must inform the applicant of its decisionby written notice, which includes a statement of the reasons for the decision.

(d) Appointment of the overseas auditor

After the approval-in-principle is granted by the FRC, the overseas entity may appointthe overseas auditor specified in the approval-in-principle to carry out a PIEengagement for it.

If the overseas auditor undertakes the PIE engagement, the overseas entity must, within14 days after the date of undertaking, inform the FRC of that fact by written notice.

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If, by the end of this 6-month validity period of the approval-in-principle:

• the overseas entity has not appointed the overseas auditor specified in theapproval-in-principle to carry out a PIE engagement for it; or

• the overseas entity has appointed the overseas auditor to carry out a PIEengagement for it but the overseas auditor has not undertaken the engagement,

the overseas entity must make a fresh application under paragraph 12(a) of this document if it subsequently proposes to appoint an overseas auditor.

(e) Validity of the recognition

The recognition of an overseas auditor as a PIE auditor of an overseas entity takeseffect when the auditor accepts an appointment to carry out a PIE engagement withinthe 6-month validity period of the approval-in-principle. The recognition expires on31 December of the year in which the recognition takes effect. The recognition of anoverseas auditor as a PIE auditor is renewable annually.

Renewal

13. An overseas entity intending to retain a recognized PIE auditor to carry out a PIE engagementin the following year is required to apply to the FRC for renewal of the recognition.

14. The application must be made no earlier than 3 months, and no later than 45 days, before theday on which the current recognition expires.

15. An overseas entity, as an applicant, is required to submit Application Form C – Informationof the Overseas Entity and to coordinate with the overseas auditor for the submission ofApplication Form D – Information of the Overseas Auditor. Details of Application Form Cand Application Form D, and the fee schedule are set out in Appendix II and Appendix IIIrespectively.

Eligibility requirements for renewal of the recognition as a recognized PIE auditor are thesame as those set out in paragraph 8 of this document. The overseas entity is requested todeclare that the statement of no objection has not been withdrawn in Application Form C.

16. The FRC will generally inform the applicant of its decision on the application by writtennotice within 20 business days of the date of application, if the FRC is satisfied that nosupplementary information is required. A copy of the notice will also be sent to the overseasauditor specified in the application.

If the FRC refuses the application, the FRC must inform the applicant of its decision bywritten notice, which includes a statement of the reasons for the decision.

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17. The renewal of the recognition expires on 31 December of the year in which the renewaltakes effect.

Notification of termination of appointment of recognized PIE auditor

18. The recognition of a recognized PIE auditor is revoked, when the appointment of the auditorfor carrying out a PIE engagement for the overseas entity is terminated. The overseas entityis required, within 14 days after the date of termination, to inform the FRC of the terminationby written notice.

19. If the overseas entity proposes to appoint another overseas auditor to carry out a PIEengagement for it, the overseas entity must make a fresh application under paragraph 12(a)of this document.

Imposition or amendment of recognition conditions

20. The FRC may at any time impose any conditions or amend an existing condition in relationto the recognition of a PIE auditor that the FRC considers appropriate.

21. If the FRC decides to impose or amend a condition in relation to the recognition of a PIEauditor, the FRC must inform the overseas entity of its decision by written notice; and issuea copy of the notice to the overseas auditor concerned. The notice will also include astatement of the reasons for the decision.

Failure to meet certain requirements after recognition

22. If a recognized PIE auditor fails to meet a requirement specified in paragraph 8(b) or (c) ofthis document, the overseas auditor is required, within 7 days after the day on which thefailure begins, inform the FRC of the failure by written notice.

23. The overseas auditor is required, within 14 days after the day on which the written notice isissued to the FRC, to take steps to ensure that the requirement is met.

24. If the overseas auditor still fails to meet the requirement on the expiry of the 14-day period,the FRC may –

(a) revoke the recognition of the auditor; or

(b) suspend the recognition of the auditor for a period of time, or until the occurrence ofan event, that the FRC considers appropriate.

25. If the FRC decides to revoke or suspend the recognition of an auditor under paragraph 24 ofthis document, the FRC must inform the auditor of its decision by written notice; and issuea copy of the notice to the overseas entity concerned. The notice will also include a statementof the reasons for the decision.

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Notification of changes in particulars of the recognized PIE auditor

26. If there is a change in full name, business address, telephone number and/or electronic mailaddress of a recognized PIE auditor, the auditor must, within 14 days after the day on whichthe change takes place, inform the FRC of the change by written notice.

Offences to provide false or misleading information

27. According to section 20ZQ of the FRCO, a person commits an offence and is liable onconviction to a fine of HK$50,000 and to imprisonment for 6 months if the person, inconnection with an application or a renewal application for recognition of overseas auditorsunder paragraphs 12(a) and 13 of this document respectively –

(a) makes a statement that is false or misleading in a material particular;

(b) knows that, or is reckless as to whether or not, the statement is false or misleading ina material particular;

(c) omits a material particular from a statement with the result that the statement isrendered false or misleading; and

(d) knows that, or is reckless as to whether or not, the material particular is omitted fromthe statement.

Financial Reporting Council Recognition of Overseas Auditors Application Form A - Information of the Overseas Entity (To be filled in and submitted by the overseas entity)

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Introduction

This application form applies to the recognition of an overseas auditor intending to carry out a public interest entity (PIE) engagement for an overseas entity by the Financial Reporting Council (the FRC) under Division 3 of Part 3 of Financial Reporting Council Ordinance (Cap 588) (the FRCO).

The definitions of overseas entity, PIE and PIE engagement are set out in sections 2(1), 3(1) and Part 1 of Schedule 1A of the FRCO, which are enclosed in this application form.

Please refer to the following guidance materials available on the website of the FRC before completion of this application form:

• Recognition of Overseas Auditors Policy Statement• Recognition of Overseas Auditors – Application and Renewal Procedures

If there is any question, please contact the FRC at +852 2810 6321 or by e-mail at [email protected]

Who should apply for recognition?

If an overseas entity proposes to appoint an overseas auditor to carry out a PIE engagement for it, the overseas entity must apply to the FRC for the recognition of the overseas auditor as a PIE auditor of the entity.

How to apply for recognition?

An overseas entity, as an applicant, is required to submit Application Form A – Information of the Overseas Entity together with the statement of no objection, and to coordinate with the proposed overseas auditor for the submission of Application Form B – Information of the Overseas Auditor to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:

Department of Oversight, Policy and Governance Financial Reporting Council 24th Floor, Hopewell Centre 183 Queen's Road EastHong Kong

The application is processed only upon receipt of Application Form A and Application Form B together with all supporting documents, and the application fee of HK$2501.

1 Please refer to section 5 of this application form for the payment method.

Appendix I

https://www.frc.org.hk/en-us/Documents/recognition-and-oversight/policy-statement.pdf

https://www.frc.org.hk/en-us/Documents/recognition-and-oversight/application-and-renewal-procedures.pdf


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Updating information

If there is a change in any particulars contained in this application form, the overseas entity must, within 14 days after the day on which the change takes place, inform the FRC of the change in writing.

Register of PIE auditors

The information provided under section 2 in this application form may be contained in the register established and maintained by the Hong Kong Institute of Certified Public Accountants under section 20ZX(3) of the FRCO.

Personal Data (Privacy) Ordinance

The information requested in this application form may include personal data as defined in the Personal Data (Privacy) Ordinance (Cap 486). This Ordinance authorises the FRC to collect and use personal data to perform its functions as a financial regulator. Please refer to the enclosed Personal Information Collection Statement which sets out the FRC’s policies and practices with regard to any personal data provided.


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Table of contents

Section Content Page

1 Type of overseas entity 4

1A General information of a corporation 4 – 5

1B General information of a collective investment scheme 5 – 6

2 General information of the PIE engagement 6

3 Other information of the overseas entity 6

4 Declarations and signature 7

5 Payment method 7 – 8

Enclosures

- Extracts of section 2(1), section 3(1) and Part 1 of Schedule 1A of the FRCO 9

- Personal Information Collection Statement 10 – 11


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Section 1 Type of overseas entity

☐ A corporation (proceed to section 1A)

☐ A collective investment scheme (proceed to section 1B)

Please provide a statement of no objection issued by the Hong Kong Exchanges and Clearing Limited for a corporation/the Securities and Futures Commission for a collective investment scheme2 for appointing an overseas auditor to carry out a PIE engagement.

Section 1A General information of a corporation

1.1 Full name of the entity (the Overseas Entity)

1.2 Stock code(s) and place(s) of listing, where applicable

1.3 Financial year end

1.4 Place of incorporation

1.5 Correspondence address

1.6 Phone number, including country and area codes

1.7 Fax number, including country and area codes

1.8 Email address

1.9 Website address

Primary contact person

1.10 Family name

1.11 Given name

1.12 Relationship with the Overseas Entity

2 Please delete as appropriate.


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1.16 Email address

Section 1B General information of a collective investment scheme

1.1 Full name of the scheme (the Overseas Entity)


1.3 Financial year end

1.4 Place of domicile

1.5 Address of registered office



1.8 Email address

1.9 Website address


1.10 Family name

1.11 Given name

1.12 Relationship with the Overseas Entity


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1.16 Email address

Section 2 General information of the PIE engagement

2.1 Full name of the auditor to undertake the PIE engagement(s) for the Overseas Entity (the Overseas Auditor)

2.2 Correspondence address of the Overseas Auditor

2.3 Accounting standards to be adopted in preparing the financial statements of the Overseas Entity

Section 3 Other information of the overseas entity

3.1 Provide an Annex with the following of the Overseas Entity:

(a) a list of principal subsidiaries, associates and joint ventures with their principalactivities or nature of activities and locations of operations (indicate if their securitiesare trading on a regulated market), if any; and

(b) a description of the shareholder structure (list the individuals or corporations, andtheir percentage of holding, if they had interests in 5% or more of any class of votingshares in the Overseas Entity as at the previous financial year end), where applicable.

3.2 Provide the audited or unaudited financial statements of the Overseas Entity for the previous three financial years, where applicable.


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Section 4 Declarations and signature

We confirm that the information in this application form is complete and true. We will notify the FRC in writing within 14 days of any change in the information required in this application form.

This application form should be signed by an authorized person on behalf of the Overseas Entity, and submitted to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


Family name

Given name

Relationship with the Overseas Entity

Date

Signature (must be signed by an authorized person on behalf of the Overseas Entity)

Section 5 Payment method

Application fee: HK$250

Payment by:

☐ Bank transfer

SWIFT Bank Identifier Code (SWIFT BIC): BKCHHKHHXXX Bank Name: BANK OF CHINA (HONG KONG) LIMITED, HONG KONG Address: BANK OF CHINA TOWER, 1 GARDEN ROAD, CENTRAL, HONG KONG Beneficiary’s Account Number: 012-806-10209137 Beneficiary’s Name: FINANCIAL REPORTING COUNCIL

Please provide a copy of remittance advice of the bank transfer.


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☐ Cheque in Hong Kong Dollars only (payable to FINANCIAL REPORTING COUNCIL)

Cheque number:

Postdated cheques are not accepted.

• Cash is not accepted.• The application fee of HK$250 is not refundable.

Annexes

Section 1 Statement of no objection Section 3.1 (a) A list of principal subsidiaries, associates and joint ventures of the Overseas

Entity, if any.(b) A description of the shareholder structure of the Overseas Entity, whereapplicable.

Section 3.2 Audited or unaudited financial statements of the Overseas Entity for the previous three financial years, where applicable


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Extracts of the Financial Reporting Council Ordinance

Section 2(1) Overseas entity

Overseas entity means— (a) a collective investment scheme constituted under the laws of any place outside Hong Kong; or(b) a body corporate incorporated outside Hong Kong, whether or not the scheme or body is a

listed entity

Section 3(1) PIE

PIE means a public interest entity; public interest entity means— (a) a listed corporation (equity); or(b) a listed collective investment scheme.

Listed corporation (equity) means a listed corporation the listed securities of which comprise at least shares or stocks.

Part 1 of Schedule 1A PIE Engagements

1. The preparation of an auditor’s report in relation to the following financial statements oraccounts of a PIE—(a) if the PIE is a listed corporation (equity)—

(i) the financial statements required to be prepared under section 379 of the CompaniesOrdinance (Cap. 622); or

(ii) the annual accounts required to be prepared under the Listing Rules; or(b) if the PIE is a listed collective investment scheme— the annual accounts required to be

prepared under the relevant code or the Listing Rules.

2. The preparation of a specified report required to be included in—(a) a listing document of a corporation seeking to be listed for the listing of its shares or stocks;(b) a listing document of a listed corporation for the listing of its shares or stocks; or(c) a listing document of—

(i) a collective investment scheme seeking to be listed; or(ii) a listed collective investment scheme.

3. The preparation of an accountant’s report required to be included in a circular issued by or onbehalf of a PIE under the Listing Rules for the purpose of—(a) a reverse takeover within the meaning of the Listing Rules; or(b) a very substantial acquisition within the meaning of the Listing Rules.


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Personal Information Collection Statement

1. The Personal Information Collection Statement (the PICS) is made in accordance with theguidelines issued by the Office of the Privacy Commissioner for Personal Data. The PICS setsout the policies and practices of the Financial Reporting Council (the FRC) with regard toyour Personal Data3.

Purpose of Collection

2. The FRC shall use the Personal Data provided by you for one or more of the followingpurposes:-

2.1 to administer the Financial Reporting Council Ordinance (Cap 588) (the FRCO), rules,regulations and guidelines made or promulgated pursuant to the powers vested in the FRC as in force at the relevant time or from time to time and to carry out its functions as a financial regulator, including:-

- to conduct inspections of PIE auditors- to investigate possible misconduct committed by PIE auditors in relation to PIE

engagements;- to impose sanctions on PIE auditors for misconduct;- to enquire into instances of non-compliance with legal, accounting or regulatory

requirements in the financial reports of PIEs;- to co-operate with and provide assistance to regulatory authorities or organizations,

whether formed or established in Hong Kong or elsewhere;- to promote and encourage quality and reliable financial reporting;- to enhance the transparency and accountability of the accountancy profession;- to enhance protection for investors and increase their confidence in the financial

markets;- to upgrade corporate governance and market quality, thereby fortifying the status of

Hong Kong as an international financial centre.

2.2 for research and statistical purposes; and

2.3 other purposes directly relating to any of the above or those permitted by law.

3. Failure to provide the requested Personal Data may result in the FRC being unable to performits statutory functions under the FRCO.

Transfer/Matching of Personal Data

4. Personal Data may be disclosed by the FRC to other financial regulators in Hong Kong(including the Hong Kong Exchanges and Clearing Limited, the Hong Kong MonetaryAuthority, the Hong Kong Institute of Certified Public Accountants, the Insurance Authority,the Securities and Futures Commission and the Mandatory Provident Fund SchemesAuthority), government bodies (including the Hong Kong Police and the IndependentCommission Against Corruption) and overseas regulatory bodies as required under the law or

3 Personal Data means personal data as defined in the Personal Data (Privacy) Ordinance (Cap 486) (the PDPO)


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pursuant to any regulatory/investigatory/enquiry assistance arrangements between the FRC and other regulators (local/overseas).

5. For the purposes of carrying out its statutory functions, Personal Data may be disclosed by theFRC to the relevant Courts, Panels, Tribunals and Committees.

6. Personal Data may be used by the FRC and/or disclosed by the FRC to the aboveorganizations/bodies for the purpose of verifying/matching4 those data.

7. Personal Data may be used, disclosed or transferred by the FRC for any purpose related to theperformance of its statutory functions.

Access to Data

8. You have the right to request access to and correction of your Personal Data in accordancewith the provisions of the PDPO. Your right of access includes the right to request a copy ofyour Personal Data provided to the FRC. The FRC has the right to charge a reasonable fee forprocessing any data access request.

Enquiries

9. Any enquiries regarding the Personal Data provided or requests for access to Personal Dataor correction of Personal Data, shall be addressed in writing to:-

Financial Reporting Council24th Floor, Hopewell Centre 183 Queen's Road EastHong Kong

4 “matching procedure” is defined in s.2 of the PDPO

Financial Reporting CouncilRecognition of Overseas Auditors Application Form B - Information of the Overseas Auditor (To be filled in and submitted by the overseas auditor)

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Introduction

This application form applies to the recognition of an overseas auditor intending to carry out a public interest entity (PIE) engagement for an overseas entity by the Financial Reporting Council (the FRC) under Division 3 of Part 3 of Financial Reporting Council Ordinance (Cap 588) (the FRCO).

The definitions of overseas entity, PIE and PIE engagement are set out in sections 2(1), 3(1) and Part 1 of Schedule 1A of the FRCO, which are enclosed in this application form.




Who should apply for recognition?

If an overseas entity proposes to appoint an overseas auditor to carry out a PIE engagement for it, the overseas entity must apply to the FRC for the recognition of the overseas auditor as a PIE auditor of the entity.

How to apply for recognition?

An overseas entity, as an applicant, is required to submit Application Form A – Information of the Overseas Entity together with the statement of no objection, and to coordinate with the proposed overseas auditor for the submission of Application Form B – Information of the Overseas Auditor to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


The application is processed only upon receipt of Application Form A and Application Form B together with all supporting documents, and the application fee of HK$2501.

1 Please refer to section 5 of Application Form A – Information of the Overseas Entity for the payment method.

Appendix I




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If there is a change in any particulars contained in this application form, the overseas auditor must, within 14 days after the day on which the change takes place, inform the FRC of the change in writing.




The information requested in this application form may include personal data as defined in the Personal Data (Privacy) Ordinance (Cap 486). This Ordinance authorises the FRC to collect and use personal data to perform its functions as a financial regulator. Please refer to the enclosed Personal Information Collection Statement which sets out the FRC’s policies and practices with regard to any personal data provided.


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Table of contents


1 General information of the overseas entity 4

2 General information of the overseas auditor 4 – 5

3 Accountancy body and regulatory organization 6 – 7

4 Governance structure 7

5 Internal control quality system 7

6 Ethics and independence 8

7 PIE engagement 8 – 10

8 Continuing professional education 11

9 External quality assurance review 11 – 12

10 Good repute 12


Enclosures




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Section 1 General information of the overseas entity


1.2 Stock code(s) and places(s) of listing, where applicable

1.3 Type of Overseas Entity ☐ A corporation

☐ A collective investment scheme


Section 2 General information of the overseas auditor

Name and contact information


2.2 Legal form

2.3 Home country

2.4 Business address





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2.8 Email address

2.9 Website address


2.10 Family name

2.11 Given name

2.12 Title/position in the Overseas Auditor




2.16 Email address

Network2

2.17 Does the Overseas Auditor belong to a network? Yes ☐ No ☐ (proceed to section 3)

2.18 Name of the network

2.19 Provide an Annex with a description of the network including at least the governance structure and a list of names of all members of the network. Alternatively, if the website of the network contains such a description, a link to the relevant web page may be provided.

Web page address

2 A “network” is (a) the larger structure which is aimed at cooperation and to which the overseas auditor belongs; and (b) which is clearly aimed at profit or cost-sharing or shares common ownership, control or management, or sharescommon quality-control policies and procedures, or shares a common business strategy, or shares the use of acommon branch-name or shares a significant part of professional resources.


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Section 3 Accountancy body and regulatory organization

Accountancy body

3.1 Name of the accountancy body in the home country (the Accountancy Body) as given in section 2.3 of which/with which the Overseas Auditor is a member/registered




3.5 Email address

3.6 Membership/Registration number of the Overseas Auditor in the Accountancy Body, where applicable

3.7 Indicate if the Accountancy Body is a member of the International Federation of Accountants (the IFAC)3 Yes ☐ No ☐

Regulatory organization

3.8 Name of the regulatory organization in the home country as given in section 2.3 with jurisdiction over the registration, external quality assurance review, investigation and disciplinary sanctions over the Overseas Auditor (the Regulatory Organization)



3 In accordance with section 20ZF(2)(b)(i) of the FRCO, an application for recognition will not be granted unless the overseas auditor is a member of an accountancy body that is a member of the International Federation of Accountants.


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3.12 Email address

3.13 Indicate if the Regulatory Organization is a member of the International Forum of Independent Audit Regulators (the IFIAR). Yes ☐ No ☐

3.14 Indicate if the Regulatory Organization is from a jurisdiction which has attained equivalence status granted by the European Commission under Article 46 of Statutory Audit Directive 2006/43/EC. Yes ☐ No ☐

Section 4 Governance structure

Governance structure

4.1 Provide an Annex with a description of the governance structure of the Overseas Auditor. Alternatively, if the website of the Overseas Auditor contains such a description, a link to the relevant web page may be provided.

Web page address

Members of the board/committee

4.2 List the names, qualifications and registration details for each member of the board/committee responsible for the governance of the Overseas Auditor.

Use Form B1 – Members of Board/Committee as an Annex.

Section 5 Internal quality control system

5.1 Provide an Annex with a description of the policies and procedures of the internal quality control system of the Overseas Auditor, which address the following areas:

(a) leadership responsibilities for quality;(b) acceptance and continuance of client relationships and specific engagements;(c) human resources;(d) engagement performance; and(e) monitoring.


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Section 6 Ethics and independence

6.1 Provide an Annex with a description of the ethics and independence policies, procedures and practices of the Overseas Auditor.

Section 7 PIE engagement

Auditing standards

7.1 Auditing and assurance standards to be adopted in carrying out the PIE engagement(s) of the Overseas Entity.

Engagement partner

7.2 Name of the engagement partner 4 responsible for the PIE engagement(s) of the Overseas Entity (the Engagement Partner)

7.3 Years of experience in auditing and/or accounting

7.4 Professional qualification(s)

Name(s) of the professional body/bodies granting the qualification(s)

4 “Engagement partner” refers to a partner or other person of the Overseas Auditor who is responsible for the engagement and its performance, and for the report that is issued on behalf of the Overseas Auditor, and who, where required, has the appropriate authority from a professional, legal or regulatory body.


9

Registration number(s) in the professional body/bodies, where applicable

7.5 Correspondence address of the Engagement Partner

7.6 Telephone number of the Engagement Partner, including country code and area codes

7.7 Fax number of the Engagement Partner, including country code and area codes

7.8 Email address of the Engagement Partner

Engagement quality control reviewer

7.9 Name of the engagement quality control reviewer5 responsible for the PIE engagement(s) of the Overseas Entity (the EQCR)

7.10 Years of experience in auditing and/or accounting

7.11 Professional qualification(s)


5 “Engagement quality control reviewer” refers to a partner, other person of the Overseas Auditor, suitably qualified external person, or a team made up of such individuals, none of whom is part of the engagement team, with sufficient and appropriate experience and authority to objectively evaluate the significant judgments the engagement team made and the conclusions it reached in formulating the report.


10


7.12 Correspondence address of the EQCR

7.13 Telephone number of the EQCR, including country code and area codes

7.14 Fax number of the EQCR, including country code and area codes

7.15 Email address of the EQCR

Key engagement team members

7.16 Number of key engagement team member(s) responsible for the PIE engagement(s) of the Overseas Entity (excluding the Engagement Partner and the EQCR) (the Key Engagement Team Members)

7.17 Number of certified public accountants (or equivalent) among the Key Engagement Team Members


11

Section 8 Continuing professional education

8.1 Please declare if the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the following requirements:

• Completion of at least 120 hours of relevant professional development activities6 in eachrolling three-year period, of which 60 hours shall be verifiable7; and

• Completion of at least 20 hours (either verifiable or non-verifiable) of relevantprofessional development activity in each year.

Yes ☐ We declare that the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the above requirements.

No ☐ We cannot declare that the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the above requirements.

Indicate which of the above personnel do not comply with the above requirements and provide details of such non-compliance.

Section 9 External quality assurance review

9.1 Has the Overseas Auditor been subject to an external quality assurance review? Yes ☐ (proceed to section 9.2) No ☐ (proceed to section 10)

9.2 Name of the regulatory organization

9.3 Correspondence address of the regulatory organization

9.4 Phone number of the regulatory organization, including country and area codes

6 Relevant professional development activities refer to learning activities, which develop the professional knowledge, professional skills and professional values of the individuals and are relevant to their current and future work, professional responsibilities, helping them to enhance the understanding of the trends and environment in which they are working as a certified public accountant. Learning activities to improve business skills, such as leadership, negotiation, management and presentation skills can also be recognized as relevant professional development activities.

7 Learning activities will be counted as verifiable hours so long as they can be objectively verified by a competent source. Such sources include attendance records, examination result slips, confirmation of registration for online courses etc. Evidence may also include independent assessment that a learning activity has occurred e.g. certificates of achievement; confirmation by an instructor, mentor or tutor of participation; or confirmation by an employer of participation in an in-house programme.


12

9.5 Fax number of the regulatory organization, including country and area codes

9.6 Email address of the regulatory organization

9.7 Date when the last external quality assurance review was carried out

9.8 Provide an Annex with necessary information about the outcome of the last external quality assurance review. A full copy of the last quality assurance review report, e.g. an inspection report issued by the regulatory organization, should be provided, if possible.

Alternatively, a brief description of the outcome, including the main shortcomings, and the main measures that had been undertaken to address the shortcomings and to prevent them from recurring, should be provided.

Indicate if the regulatory organization was satisfied with the measures taken, if available.

Section 10 Good repute

10.1 Are the Overseas Auditor, the Engagement Partner and the EQCR of good repute?

In order to assess whether or not the Overseas Auditor, the Engagement Partner and the EQCR are of good repute, questions in “Guidance Note – Declaration of Good Repute” in relation to the Overseas Auditor (Part I) and in relation to the Engagement Partners and the EQCR (Part II) should be completed.

If the answer to any of the questions in “Guidance Note – Declaration of Good Repute” is “Yes”, additional information and explanation as necessary should be provided to enable the FRC to assess good repute of the Overseas Auditor, the Engagement Partner and the EQCR.

Yes ☐ We declare that the Overseas Auditor, the Engagement Partner and the EQCR are of good repute.

No ☐ We cannot declare that the Overseas Auditor, the Engagement Partner and the EQCR are of good repute.

Provide details.


13



This application form should be signed by an authorized person on behalf of the Overseas Auditor, and submitted to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


Family name

Given name

Title/Position in the Overseas Auditor

Date

Signature (must be signed by an authorized person on behalf of the Overseas Auditor)

Annexes

Section 2.19 Description of the network Section 4.1 Description of the governance structure Section 4.2 Form B1 – Members of Board/Committee Section 5.1 Description of the internal quality control system Section 6.1 Description of the ethics and independence policies, procedures and practices Section 9.8 Information as necessary about the outcome of the last external quality assurance

review, where applicable Section 10.1 Guidance Note – Declaration of Good Repute

Information as necessary to support the declaration of good repute, where applicable


14




listed entity

Section 3(1) PIE












15



















16





Access to Data


Enquiries




Financial Reporting Council Renewal of Recognition of Overseas Auditors Application Form C - Information of the Overseas Entity (To be filled in and submitted by the overseas entity)

1

Introduction

This application form applies to the renewal of the recognition of an overseas auditor of an overseas entity by the Financial Reporting Council (the FRC) under Division 3 of Part 3 of Financial Reporting Council Ordinance (Cap 588) (the FRCO).

The definitions of overseas entity, PIE and PIE engagement are set out in sections 2(1), 3(1) and Part 1 of Schedule 1A of the FRCO, which are enclosed in this application form. A PIE auditor is an auditor who carries out a PIE engagement.




Who should apply for renewal?

The recognition of an overseas auditor as a PIE auditor expires on 31 December of the year in which the recognition takes effect. The recognition is renewable annually. An overseas entity is required to apply to the FRC for renewal of the recognition.

When to apply for renewal?

The application of renewal must be made no earlier than 3 months, and no later than 45 days, before the day on which the current recognition expires (i.e. 30 September to 16 November).

How to apply for renewal?

An overseas entity, as an applicant, is required to submit Application Form C – Information of the Overseas Entity and to coordinate with the overseas auditor for the submission of Application Form D – Information of the Overseas Auditor to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


The application is processed only upon receipt of Application Form C and Application Form D together with all supporting documents, and the application fee of HK$2001.

1 Please refer to section 5 of this application form for the payment method.

Appendix II




2


If there is a change of information contained in this application form, the overseas entity must, within 14 days after the day on which the change takes place, inform the FRC of the change in writing.




The information requested in this application form may include personal data as defined in the Personal Data (Privacy) Ordinance (Cap 486). This Ordinance authorises the FRC to collect and use personal data to perform its functions as a financial regulator. Please refer to the attached Personal Information Collection Statement which sets out the FRC’s policies and practices with regard to any personal data provided.


3

Table of contents


1 Type of overseas entity 4

1A General information of a corporation 4 – 5

1B General information of a collective investment scheme 5 – 6

2 General information of the PIE engagement 6 – 7

3 Other information of the overseas entity 7

4 Declarations and signature 7 – 8

5 Payment method 8

Enclosures




4

Section 1 Type of overseas entity

☐ A corporation (proceed to section 1A)

☐ A collective investment scheme (proceed to section 1B)

Section 1A General information of a corporation



If there is any change in the information in sections 1.3 to 1.16 since the last submission of Application Form A or Application Form C, please tick “Yes” and fill in the relevant information. If not, please tick “N/A”. 1.3 Yes

☐

N/A ☐

Financial year end

1.4 Yes ☐

N/A ☐

Place of incorporation

1.5 Yes ☐

N/A ☐

Correspondence address

1.6 Yes ☐

N/A ☐

Phone number, including country and area codes

1.7 Yes ☐

N/A ☐

Fax number, including country and area codes

1.8 Yes ☐

N/A ☐

Email address

1.9 Yes ☐

N/A ☐

Website address


1.10 Yes ☐

N/A ☐

Family name

1.11 Yes ☐

N/A ☐

Given name


5

1.12 Yes ☐

N/A ☐


1.13 Yes ☐

N/A ☐


1.14 Yes ☐

N/A ☐


1.15 Yes ☐

N/A ☐


1.16 Yes ☐

N/A ☐

Email address

Section 1B General information of a collective investment scheme

1.1 Full name of the scheme (the Overseas Entity)


If there is any change in the information in sections 1.3 to 1.16 since the last submission of Application Form A or Application Form C, please tick “Yes” and fill in the relevant information. If not, please tick “N/A”.

1.3 Yes ☐

N/A ☐

Financial year end

1.4 Yes ☐

N/A ☐

Place of domicile

1.5 Yes ☐

N/A ☐

Address of registered office

1.6 Yes ☐

N/A ☐


1.7 Yes ☐

N/A ☐



6

1.8 Yes ☐

N/A ☐

Email address

1.9 Yes ☐

N/A ☐

Website address

Primary contact person 1.10 Yes

☐ N/A ☐

Family name

1.11 Yes ☐

N/A ☐

Given name

1.12 Yes ☐

N/A ☐


1.13 Yes ☐

N/A ☐


1.14 Yes ☐

N/A ☐


1.15 Yes ☐

N/A ☐


1.16 Yes ☐

N/A ☐

Email address

Section 2 General information of the PIE engagement 2.1 Full name of the auditor to

undertake the PIE engagement(s) for the Overseas Entity (the Overseas Auditor)

2.2 Correspondence address of the Overseas Auditor


7

2.3 Accounting standards to be adopted in preparing the financial statements of the Overseas Entity

Section 3 Other information of the overseas entity

3.1 Indicate if there is any change in the following information of Overseas Entity since the last submission of Application Form A or Application Form C:

(a) the principal subsidiaries, associates and joint ventures with their principal activities ornature of activities and locations of operations (indicate if their securities are tradingon a regulated market), if any; and

(b) the shareholder structure (list the individuals or corporations, and their percentage ofholding, if they had interests in 5% or more of any class of voting shares in the OverseasEntity as at the previous financial year end), where applicable.

Yes ☐ (provide an Annex with theupdated information)

No ☐ (proceed to section 4)

3.2 Provide the audited or unaudited financial statements of the Overseas Entity for the previous financial year, where applicable.


We confirm that the statement of no objection issued by the Hong Kong Exchanges and Clearing Limited for a corporation/the Securities and Futures Commission for a collective investment scheme2 has not been withdrawn, and the information in this application form is complete and true. We will notify the FRC in writing within 14 days of any change in the information required in this application form.

This application form should be signed by an authorized person on behalf of the Overseas Entity, and submitted to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


2 Please delete as appropriate.


8

Family name

Given name


Date

Signature (must be signed by an authorized person on behalf of the Overseas Entity)

Section 5 Payment method

Application fee: HK$200

Payment by:

☐ Bank transfer

SWIFT Bank Identifier Code (SWIFT BIC): BKCHHKHHXXX Bank Name: BANK OF CHINA (HONG KONG) LIMITED, HONG KONG Address: BANK OF CHINA TOWER, 1 GARDEN ROAD, CENTRAL, HONG KONG Beneficiary’s Account Number: 012-806-10209137 Beneficiary’s Name: FINANCIAL REPORTING COUNCIL

Please provide a copy of remittance advice of the bank transfer.

☐ Cheque in Hong Kong Dollars only (payable to FINANCIAL REPORTING COUNCIL)

Cheque number:

Postdated cheques are not accepted.

• Cash is not accepted.• The application fee of HK$200 is not refundable.

Annexes

Section 3.1 (a) A list of principal subsidiaries, associates and joint ventures of the OverseasEntity, if any.(b) A description of the shareholder structure of the Overseas Entity, whereapplicable.

Section 3.2 Audited or unaudited financial statements of the Overseas Entity for the previous financial year, where applicable


9




listed entity

Section 3(1) PIE












10



















11





Access to Data


Enquiries




Financial Reporting CouncilRenewal of Recognition of Overseas Auditors Application Form D - Information of the Overseas Auditor (To be filled in and submitted by the overseas auditor)

1

Introduction

This application form applies to the renewal of the recognition of an overseas auditor of an overseas entity by the Financial Reporting Council (the FRC) under Division 3 of Part 3 of Financial Reporting Council Ordinance (Cap 588) (the FRCO).

The definitions of overseas entity, PIE and PIE engagement are set out in sections 2(1), 3(1) and Part 1 of Schedule 1A of the FRCO, which are enclosed in this application form. A PIE auditor is an auditor who carries out a PIE engagement.




Who should apply for renewal?

The recognition of an overseas auditor as a PIE auditor expires on 31 December of the year in which the recognition takes effect. The recognition is renewable annually. An overseas entity is required to apply to the FRC for renewal of the recognition.

When to apply for renewal?

The application of renewal must be made no earlier than 3 months, and no later than 45 days, before the day on which the current recognition expires (i.e. 30 September to 16 November).

How to apply for renewal?

An overseas entity, as an applicant, is required to submit Application Form C – Information of the Overseas Entity and to coordinate with the overseas auditor for the submission of Application Form D – Information of the Overseas Auditor to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


The application is processed only upon receipt of Application Form C and Application Form D together with all supporting documents, and the application fee of HK$2001.

1 Please refer to section 5 of Application Form C – Information of the Overseas Entity for the payment method.

Appendix II




2


If there is a change of information contained in this application form, the overseas auditor must, within 14 days after the day on which the change takes place, inform the FRC of the change in writing.




The information requested in this application form may include personal data as defined in the Personal Data (Privacy) Ordinance (Cap 486). This Ordinance authorises the FRC to collect and use personal data to perform its functions as a financial regulator. Please refer to the attached Personal Information Collection Statement which sets out the FRC’s policies and practices with regard to any personal data provided.


3

Table of contents


1 General information of the overseas entity 4

2 General information of the overseas auditor 4 – 6

3 Accountancy body and regulatory organization 6 – 8

4 Governance structure 8

5 Internal control quality system 8 – 9

6 Ethics and independence 9

7 PIE engagement 9 – 12

8 Continuing professional education 12 – 13

9 External quality assurance review 13 – 14

10 Good repute 14


Enclosures




4

Section 1 General information of the overseas entity


1.2 Stock code(s) and places(s) of listing, where applicable

1.3 Type of overseas entity ☐ A corporation

☐ A collective investment scheme


Section 2 General information of the overseas auditor

Name and contact information


If there is any change in the information in sections 2.2 to 2.16 since the last submission of Application Form B or Application Form D, please tick “Yes” and fill in the relevant information. If not, please tick “N/A”.

2.2 Yes ☐

N/A ☐

Legal form

2.3 Yes ☐

N/A ☐

Home country

2.4 Yes ☐

N/A ☐

Business address


5

2.5 Yes ☐

N/A ☐


2.6 Yes ☐

N/A ☐


2.7 Yes ☐

N/A ☐


2.8 Yes ☐

N/A ☐

Email address

2.9 Yes ☐

N/A ☐

Website address


2.10 Yes ☐

N/A ☐

Family name

2.11 Yes ☐

N/A ☐

Last name

2.12 Yes ☐

N/A ☐

Title/position in the Overseas Auditor

2.13 Yes ☐

N/A ☐


2.14 Yes ☐

N/A ☐


2.15 Yes ☐

N/A ☐


2.16 Yes ☐

N/A ☐

Email address


6

Network2

Indicate if there is any change in the information in sections 2.17 to 2.19 since the last submission of Application Form B or Application Form D.

Yes ☐ (proceed to sections 2.17 to2.19)


2.17 Does the overseas auditor belong to a network? Yes ☐ No ☐ (proceed to section 3)

2.18 Name of the network

2.19 Provide an Annex with a description of the network including at least the governance structure and a list of names of all members of the network. Alternatively, if the website of the network contains such a description, a link to the relevant web page may be provided.

Web page address

Section 3 Accountancy body and regulatory organization

Accountancy body

3.1 Name of the accountancy body in the home country (the Accountancy Body) as given in section 2.3 of which/with which the Overseas Auditor is a member/registered

If there is any change in the information in sections 3.2 to 3.6 since the last submission of Application Form B or Application Form D, please tick “Yes” and fill in the relevant information. If not, please tick “N/A”. 3.2 Yes

☐N/A ☐


2 A “network” is (a) the larger structure which is aimed at cooperation and to which the overseas auditor belongs; and (b) which is clearly aimed at profit or cost-sharing or shares common ownership, control or management, or sharescommon quality-control policies and procedures, or shares a common business strategy, or shares the use of acommon branch-name or shares a significant part of professional resources.


7

3.3 Yes ☐

N/A ☐


3.4 Yes ☐

N/A ☐


3.5 Yes ☐

N/A ☐

Email address

3.6 Yes ☐

N/A ☐

Membership/Registration number of the Overseas Auditor in the Accountancy Body, where applicable

3.7 Indicate if the accountancy body is a member of the International Federation of Accountants (the IFAC)3 Yes ☐ No ☐

Regulatory organization

3.8 Name of the regulatory organization in the home country as given in section 2.3 with jurisdiction over the registration, external quality assurance review, investigation and disciplinary sanctions over the Overseas Auditor (the Regulatory Organization)

If there is any change in the information in sections 3.9 to 3.12 since the last submission of Application Form B or Application Form D, please tick “Yes” and fill in the relevant information. If not, please tick “N/A”. 3.9 Yes

☐N/A ☐


3.10 Yes ☐

N/A ☐


3.11 Yes ☐

N/A ☐


3.12 Yes ☐

N/A ☐

Email address

3 In accordance with section 20ZF(2)(b)(i) of the FRCO, an application for recognition will not be granted unless the overseas auditor is a member of an accountancy body that is a member of the International Federation of Accountants.


8

3.13 Indicate if the regulatory organization is a member of the International Forum of Independent Audit Regulators (the IFIAR). Yes ☐ No ☐

3.14 Indicate if the regulatory organization is from a jurisdiction which has attained equivalence status granted by the European Commission under Article 46 of Statutory Audit Directive 2006/43/EC. Yes ☐ No ☐

Section 4 Governance structure

Governance structure

4.1 Indicate if there is any change in the governance structure of the Overseas Auditor since the last submission of Application Form B or Application Form D.

Yes ☐ (provide an Annex withupdated information. Alternatively, if the website of the Overseas Auditor contains such updated information, a link to the relevant web page may be provided.)

No ☐ (proceed to section 4.2)

Web page address

Members of the board/committee

4.2 Indicate if there is any change in respect of the names, qualifications and registration details for each member of the board/committee responsible for the governance of the Overseas Auditor since the last submission of Application Form B or Application Form D. Yes ☐ (provide the updated

information in Form D1 – Members of Board/ Committee)


Section 5 Internal quality control system

5.1 Indicate if there is any change in respect of the policies and procedures of the internal quality control system of the Overseas Auditor since the last submission of Application Form B or Application Form D. The policies and procedures should address the following areas:

(a) leadership responsibilities for quality;


9

(b) acceptance and continuance of client relationships and specific engagements;(c) human resources;(d) engagement performance; and(e) monitoring.

Yes ☐ (provide an Annex withupdated information)


Section 6 Ethics and independence

6.1 Indicate if there is any change in respect of the ethics and independence policies, procedures and practices of the Overseas Auditor since the last submission of Application Form B or Application Form D.

Yes ☐ (provide an Annex withupdated information)


Section 7 PIE engagement

Auditing standards

7.1 Auditing and assurance standards to be adopted in carrying out the PIE engagement(s) of the Overseas Entity.

Engagement partner


7.2 Yes ☐

N/A ☐

Name of the engagement partner 4 responsible for the PIE engagement(s) of the Overseas Entity (the Engagement Partner)

4 “Engagement partner” refers to a partner or other person of the Overseas Auditor who is responsible for the engagement and its performance, and for the report that is issued on behalf of the Overseas Auditor, and who, where required, has the appropriate authority from a professional, legal or regulatory body.


10

7.3 Yes ☐

N/A ☐

Years of experience in auditing and/or accounting

7.4 Yes ☐

N/A ☐

Professional qualification(s)

Yes ☐

N/A ☐


Yes ☐

N/A ☐


7.5 Yes ☐

N/A ☐

Correspondence address of the Engagement Partner

7.6 Yes ☐

N/A ☐

Telephone number of the Engagement Partner, including country code and area codes

7.7 Yes ☐

N/A ☐

Fax number of the Engagement Partner, including country code and area codes

7.8 Yes ☐

N/A ☐

Email address of the Engagement Partner


11

Engagement quality control reviewer


7.9 Yes ☐

N/A ☐

Name of the engagement quality control reviewer 5 responsible for the PIE engagement(s) of the Overseas Entity (the EQCR)

7.10 Yes ☐

N/A ☐

Years of experience in auditing and/or accounting

7.11 Yes ☐

N/A ☐

Professional qualification(s)

Yes ☐

N/A ☐


Yes ☐

N/A ☐


5 “Engagement quality control reviewer” refers to a partner, other person of the Overseas Auditor, suitably qualified external person, or a team made up of such individuals, none of whom is part of the engagement team, with sufficient and appropriate experience and authority to objectively evaluate the significant judgments the engagement team made and the conclusions it reached in formulating the report.


12

7.12 Yes ☐

N/A ☐

Correspondence address of the EQCR

7.13 Yes ☐

N/A ☐

Telephone number of the EQCR, including country code and area codes

7.14 Yes ☐

N/A ☐

Fax number of the EQCR, including country code and area codes

7.15 Yes ☐

N/A ☐

Email address of the EQCR

Key engagement team members

7.16 Number of key engagement team member(s) responsible for the PIE engagement(s) of the Overseas Entity (excluding the Engagement Partner and the EQCR) (the Key Engagement Team Members)

7.17 Number of certified public accountants (or equivalent) among the Key Engagement Team Members

Section 8 Continuing professional education

8.1 Please declare if the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the following requirements:

• Completion of at least 120 hours of relevant professional development activities6 in eachrolling three-year period, of which 60 hours shall be verifiable7; and

6 Relevant professional development activities refer to learning activities, which develop the professional knowledge, professional skills and professional values of the individuals and are relevant to their current and future work, professional responsibilities, helping them to enhance the understanding of the trends and environment in which they are working as a certified public accountant. Learning activities to improve business skills, such as leadership, negotiation, management and presentation skills can also be recognized as relevant professional development activities.

7 Learning activities will be counted as verifiable hours so long as they can be objectively verified by a competent source. Such sources include attendance records, examination result slips, confirmation of registration for online courses etc. Evidence may also include independent assessment that a learning activity has occurred e.g. certificates of


13

• Completion of at least 20 hours (either verifiable or non-verifiable) of relevantprofessional development activity in each year.

Yes ☐ We declare that the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the above requirements.

No ☐ We cannot declare that the Engagement Partner, the EQCR and the Key Engagement Team Members comply with the above requirements.

Indicate which of the above personnel do not comply with the above requirements and provide details of such non-compliance.

Section 9 External quality assurance review

9.1 Has the Overseas Auditor been subject to an external quality assurance review since the last submission of Application Form B or Application Form D? Yes ☐ (proceed to section 9.2) No ☐ (proceed to section 10)

9.2 Name of the regulatory organization

9.3 Correspondence address of the regulatory organization

9.4 Phone number of the regulatory organization, including country and area codes

9.5 Fax number of the regulatory organization, including country and area codes

9.6 Email address of the regulatory organization

9.7 Date when the last external quality assurance review was carried out

achievement; confirmation by an instructor, mentor or tutor of participation; or confirmation by an employer of participation in an in-house programme.


14

9.8 Provide an Annex with necessary information about the outcome of the last external quality assurance review. A full copy of the last quality assurance review report, e.g. an inspection report issued by the regulatory organization, should be provided, if possible.

Alternatively, a brief description of the outcome, including the main shortcomings, and the main measures that had been undertaken to address the shortcomings and to prevent them from recurring, should be provided.

Indicate if the regulatory organization was satisfied with the measures taken, if available.

Section 10 Good repute

10.1 Are the Overseas Auditor, the Engagement Partner and the EQCR of good repute?

In order to assess whether or not the Overseas Auditor, the Engagement Partner and the EQCR are of good repute, questions in “Guidance Note – Declaration of Good Repute” in relation to the Overseas Auditor (Part I) and in relation to the Engagement Partner and the EQCR (Part II) should be completed.

If the answer to any of the questions in “Guidance Note – Declaration of Good Repute” is “Yes”, additional information and explanation as necessary should be provided to enable the FRC to assess good repute of the Overseas Auditor, the Engagement Partner and the EQCR.

Yes ☐ We declare that the Overseas Auditor, the Engagement Partner and the EQCR are of good repute.

No ☐ We cannot declare that the Overseas Auditor, the Engagement Partner and the EQCR are of good repute.

Provide details.


15



This application form should be signed by an authorized person on behalf of the Overseas Auditor, and submitted to the FRC at the following address by post, or by fax at +852 2810 6320 followed by post:


Family name

Given name

Title/Position in the Overseas Auditor

Date

Signature (must be signed by an authorized person on behalf of the Overseas Auditor)

Annexes

Section 2.19 Description of the network, where applicable Section 4.1 Description of the governance structure, where applicable Section 4.2 Form D1 – Members of Board/Committee, where applicable Section 5.1 Description of the internal quality control system, where applicable Section 6.1 Description of the ethics and independence policies, procedures and practices, where

applicable Section 9.8 Information as necessary about the outcome of the last external quality assurance

review, where applicable Section 10.1 Guidance Note – Declaration of Good Repute

Information as necessary to support the declaration of good repute, where applicable


16




listed entity

Section 3(1) PIE












17



















18





Access to Data


Enquiries




Fees HK$

250

Fee Schedule

Particulars

Application for grant of approval-in-principle for recognition as a PIE auditor

Application for renewal of recognition as a PIE auditor 200

Appendix III