𝗔𝗙𝗥𝗖, 𝗦𝗙𝗖 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲 𝗜𝘀𝘀𝘂𝗲 𝗝𝗼𝗶𝗻𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 𝘁𝗼 𝗔𝗱𝗱𝗿𝗲𝘀𝘀 𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿𝘀 𝗼𝗳 𝗢𝗽𝗶𝗻𝗶𝗼𝗻 𝗦𝗼𝗹𝗲𝗹𝘆 𝗥𝗲𝗹𝗮𝘁𝗶𝗻𝗴 𝘁𝗼 𝗚𝗼𝗶𝗻𝗴 𝗖𝗼𝗻𝗰𝗲𝗿𝗻

Oct 6, 2026

Reliable financial reporting is fundamental to investor confidence, market integrity and the long-term competitiveness of Hong Kong's capital markets. Today, the Accounting and Financial Reporting Council, Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) have issued a joint statement setting clear expectations for listed issuers' management, audit committees and auditors in addressing disclaimers of opinion solely related to going concern.

The joint statement reinforces a key message that 𝗵𝗶𝗴𝗵-𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗶𝘀 𝗮 𝘀𝗵𝗮𝗿𝗲𝗱 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆, 𝘂𝗻𝗱𝗲𝗿𝗽𝗶𝗻𝗻𝗲𝗱 𝗯𝘆 𝗿𝗼𝗯𝘂𝘀𝘁 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝘁𝗼𝗻𝗲 𝗮𝘁 𝘁𝗵𝗲 𝘁𝗼𝗽. Management must take ownership of conducting robust going concern assessments, supported by reasonable assumptions, reliable information and feasible action plans. Audit committees must exercise independent oversight and critically review management's assessments. Auditors are expected to deliver high-quality audits that support the audit opinion issued and communicate in the auditor’s report any matters, beyond going concern, that could lead to a modified opinion.

Maintaining trust in our capital markets is a shared responsibility—strong management accountability, independent oversight and high-quality audits are essential. Together, these efforts strengthen investor confidence, market integrity and Hong Kong’s position as a leading international financial centre.

The AFRC believes that audit quality is not just a compliance requirement. It is fundamental to trust, market confidence, and well-functioning capital markets.

🔎Read the press release here: https://lnkd.in/gFDuYyVB 🔎Read the joint statement here: https://lnkd.in/gRzedBw6