HONG KONG INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Committee Membership Details for the Year 2018
Audit Committee

No. Committee Member Title  
1. Mr. FONG, Chung, Mark Chairman Attendance record
2. Prof. CHO LUNG Pui Lan, Stella Member Attendance record
3. Mr. MAR, Selwyn Member Attendance record
4. Mr. POGSON, Timothy Keith Member Attendance record
5. Mr. TAM Wing-pong Member Attendance record


AUDIT COMMITTEE TERMS OF REFERENCE 2016

Constitution

 

1.   

 

The Audit Committee (the "Committee") was established by the Council on 22nd September 1999.

 

Membership

 

2.   

 

The Committee shall be appointed by the Council and shall consist of not less than three members, a majority of whom should be independent (i.e. a non Council member or a Council member who is appointed pursuant to section 10(2)(e) of the Professional Accountants Ordinance, Cap 50).  The quorum shall be a simple majority of the full Committee membership, subject to the further condition that the majority of those members in attendance be independent.

 

3.   

 

The Chairman of the Committee shall be appointed by the Council.

 

Attendance at Meetings

 

4.   

 

The Head of Finance, the Head of Internal Audit, and a representative of the external auditors shall normally attend meetings.  However, at least once a year the Committee shall meet with the external and internal auditors without the presence of management.  In addition, the Committee may request non member attendees to excuse themselves to facilitate open and frank discussion of particular matters. 

 

5.   

 

The Registrar or his/her delegate shall be the secretary of the Committee.

 

Frequency of Meetings

 

6.   

 

Meetings shall be held not less than twice a year.  The external auditors may request for additional meetings to be held if they consider that one is necessary.

 

Authority

 

7.   

 

The Committee is authorised by the Council to investigate any activity within its terms of reference.  It is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee.

 

8.   

 

The Committee is authorised by the Council to obtain, at the expense of the Institute, external legal or other independent professional advice and to secure the attendance of third parties with relevant experience and expertise if it considers this necessary.

 

Duties

 

9.   

 

The duties of the Committee shall be:

 

a.    to consider the appointment and re-appointment of the external auditors, the audit fee and terms of engagement, and any questions of resignation or dismissal; to make a recommendation to Council to re-tender the audit engagement when the need arises;   

 

b.    to discuss with the external auditors before the audit commences, the nature and scope of the audit;

 

c.    to review the annual financial statements before submission to the Council/AAT Board, focusing particularly on:

 

            i.    any changes in accounting policies and practices;

 

           ii.    major judgment areas;

 

          iii.    significant adjustments resulting from the audit;

 

         iv.    the going concern assumptions;

 

          v.    compliance with accounting standards; and

 

         vi.    compliance with the Professional Accountants Ordinance, Cap 50 and other legal requirements.

 

d.    to discuss issues and reservations arising from the management accounts and financial audits, and any matters the auditors may wish to discuss (in the absence of management where necessary);

 

e.    to review the external auditors' management letter and management's response;

 

f.     to review the Institute's statement on internal control system (where one is included in the annual report) prior to endorsement by the Council;

 

g.    to review the internal audit programme, ensure co-ordination between the internal and external auditors, and ensure that the internal audit function is adequately resourced and has appropriate standing within the Institute;

 

h.    to approve all non-audit services performed by the external auditors where the cost for those services exceed 10% of the total audit fee;

 

i.      to consider the major findings of the internal and external auditors and management's response;

 

j.      to consider other topics as defined by Council; and

 

k.    to perform other related duties as deemed appropriate for the betterment of corporate governance.

 

Reporting

 

10. 

 

The Committee shall prepare a report on its role and responsibilities and the actions it has taken to discharge those responsibilities for inclusion in the annual report of the Institute (the "Annual Report").  The Annual Report should specifically include:

 

  • a summary of the role of the audit committee;

     

  • the names and qualifications of all members of the audit committee during the period;

     

  • the number of audit committee meetings and attendance by each member; and

     

  • the way the audit committee has discharged its responsibilities.

     

11. 

 

The secretary shall circulate the Annual Report and any other reports of the Committee to Council.

 

Date: June 2016