Hong Kong Institute of Certified Public Accountants issues public letter regarding rapid growth of IPO audit projects.

On February 13, the Hong Kong Institute of Certified Public Accountants (HKICPA) issued an open letter to all public interest entities (PIEs) who are planning to act as reporting accountants for companies intending to list on the Hong Kong Stock Exchange. The open letter stated that the recent rapid growth in IPO activity has further highlighted the important role that PIE auditors play in promoting the prosperity and vitality of the Hong Kong capital market. However, this trend has also presented unprecedented challenges in maintaining high-quality audits. In light of this, the HKICPA expressed concern through the open letter about the rapid growth of IPO audit projects and reminded PIE auditors of their important responsibilities, including ensuring audit quality, maintaining independence and professional integrity, and strengthening public confidence in the Hong Kong capital market.