NEWS

The council says clear, relevant disclosures help audit committees and investors make informed choices when appointing auditors. 

The Accounting and Financial Reporting Council (AFRC) in Hong Kong has released an article drawing on insights from transparency reports released by audit companies. 

The article, entitled Transparency Reports: Building Trust and Unlocking Audit Excellence, explains how clear and relevant disclosures can help audit committees and investors make informed decisions when appointing auditors. 

It also says transparency reports can support the development of high-performing audit teams and strengthen market confidence. 

The council notes that robust audits stem from sustained investment by companies in their personnel, values and internal systems. 

The article points out that many of the measures underpinning audit quality are not always visible to those responsible for auditor selection. As a result, decisions on appointments and reappointments can become overly driven by fee levels, rather than by a considered evaluation of an audit company’s approach to audit quality. 

The AFRC says transparency reports aim to close the information gap by explaining how audit companies are run, manage audit quality, invest in people and technology, and protect ethics and independence. 

Making these details public is also seen as a way to give audit partners and staff greater clarity on how quality expectations are established and maintained within their companies. 

AFRC CEO Janey Lai said: “Audit quality is the cornerstone of public trust in financial reporting. Transparency reports reveal how audit firms are structured and governed to safeguard that trust. 

“By making the drivers of audit quality visible, audit firms signal their leadership and strengthen public confidence in audits. 

“Transparency reports also enhance staff engagement by highlighting the firm’s investment in their development, reinforcing a culture where people feel supported to deliver quality work.” 

The council notes that transparency reports issued by Hong Kong audit companies generally cover four areas: governance and leadership, quality management arrangements, talent management and technology, and ethical values and safeguards for independence. 

AFRC chairman David Sun said: “I encourage registered public interest entity auditors to proactively publish transparency reports. 

“This would signal a collective commitment to uphold market integrity, strengthen investor confidence and reinforce Hong Kong’s role as a leading international financial centre.” 

The Government of Australia has introduced legislation to reshape the country’s financial reporting architecture. 

The new legislation will merge the existing functions of the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council into a single organisation. 

The new body, called External Reporting Australia, will operate as a central agency responsible for setting standards across accounting, auditing and assurance, and sustainability. 

In a statement, Assistant Treasurer Daniel Mulino defined it as the “most significant reform to Australia’s financial reporting standard setters in over two decades”. 

He added: “Our standard setters play a crucial role supporting the integrity of markets, enhancing investor confidence and ensuring accountability in public sector institutions. 

“This reform helps ensure the governance and structural arrangements of Australia’s economic institutions and structural arrangements are best positioned to help build a more competitive, dynamic and productive economy.” 

The bill was introduced following consultation with stakeholders. 

According to the statement, the new framework is designed to allow quicker and more coordinated responses to emerging domestic and global developments in financial and sustainability reporting. 

The bill also provides for the creation of technical standardsetting boards within External Reporting Australia, including a dedicated board focused on sustainability reporting standards. 

Existing standards issued by the current bodies will continue in force as standards of External Reporting Australia until they are reviewed, updated or replaced. 

Earlier this month, CPA Australia urged the federal government to use the 2026–27 Budget to cut red tape, raise productivity and shore up Australia’s longterm competitiveness. 

The Institute of Singapore Chartered Accountants (ISCA) has backed measures announced in Singapore’s Budget 2026, saying they underscore the accountancy profession’s national role. 

The institute regards the Budget as a signal for accountants to take on a stronger role in keeping businesses resilient, well governed and prepared for long-term expansion. 

Its response draws on recent ground engagements conducted with the Association of Small and Medium Enterprises (ASME), which pointed to mounting pressures on practices and professionals. 

From these sessions, the ISCA and ASME found that 98% of respondents anticipate disruptions in their industries due to global political and trade developments. 

Around 57% identified job displacement as their top AI-related concern. 

Against this backdrop, the ISCA views Budget 2026 as “a pragmatic step that strengthens Singapore’s longer-term foundations while providing targeted support for enterprises and workers”. 

Budget 2026 strengthens support for companies to manage costs and expand overseas through measures such as corporate tax rebates and enhanced internationalisation schemes. 

It also boosts support for mid-career workers and seniors via improvements to the SkillsFuture Level-Up Programme, aligning with the ISCA’s S$2m ($1.58m) Career Support Programme. 

On sustainability, Budget 2026 extends the Energy Efficiency Grant and continues green loan support. 

The ISCA noted that the national agenda now places greater emphasis on building AI capabilities, with plans to accelerate role-based AI skills throughout the workforce. 

The accountancy profession has been identified as one of the first non-technology sectors to develop practical AI skills under the expanded TechSkills Accelerator, which the ISCA says reflects the “growing importance of role-based AI skills in professional work”. 

To support this transition, the ISCA is working with the Infocomm Media Development Authority on an AI Fluency Programme for accountancy professionals. 

The ISCA has committed S$1m from its AI for the Accountancy Industry initiative fund to back the programme. 

The programme will be offered without charge to Singaporean and permanent resident professional accountants working in Singapore and is expected to reach the country’s 120,000-strong accountancy sector. 

ISCA president Teo Ser Luck said: “Budget 2026 reflects the realities businesses and professionals face today. 

“The strong push on AI, workforce upgrading, enterprise competitiveness and internationalisation will help companies stay resilient. AI will enhance the role of accountants.” 

The German Accounting Standards Committee (DRSC) has submitted its response to the Federal Ministry of Justice and Consumer Protection (BMJV) on the European Commission’s (EC) proposed voluntary sustainability reporting standard for small and medium-sized enterprises (SMEs), known as VSME. 

The DRSC response follows a request from the BMJV earlier this month as part of a stakeholder consultation. 

The ministry’s move is linked to a consultation at EU level, where the EC has asked Member States whether the planned voluntary standard should match the existing Commission recommendation on VSME, or diverge from it. 

The future standard, which companies would apply on a voluntary basis, is expected to act as a key reference point for limiting sustainability-related information requests along the value chain under the Omnibus I Directive, referred to as the Value Chain Cap. 

In its letter, the DRSC states that the standard, as currently recommended by the EC, “has the potential to reduce individual information requests to SMEs”. 

At the same time, it notes that complete harmonisation of information requirements is unlikely given the differing needs of various stakeholder groups. 

The DRSC’s position draws on its prior work on the VSME. 

This includes translation activities carried out together with the Austrian standard setter, AFRAC, as well as initial findings from discussions with stakeholders on how well the VSME meets their requirements. 

Beyond the consultation of member states, the EC is also preparing a short public consultation on the VSME. This is expected to run for one month in April or May 2026. 

Earlier this month, the DRSC filed an application to join the IFRS Foundation’s Sustainability Standards Advisory Forum. 

Koltin Consulting Group (KCG), a US-based accounting and financial services consultancy, has named Lisa Benson as its chief growth officer (CGO), a newly created position. 

The company said the establishment of the CGO role is intended to accelerate its growth path and widen its advisory footprint. 

Prior to joining, Benson held senior roles across international accounting networks, professional alliances and advisory businesses. 

Her background spans growth strategy, relationship management and platform development, with a track record of linking company leaders, investors and advisers around shared expansion goals. 

In the CGO role, she will be responsible for shaping and leading KCG’s enterprise-wide growth strategy. 

Her mandate covers broadening strategic alliances, strengthening engagement with clients and partners, and supporting the next stage of development of the company’s advisory platform. 

She will work alongside its leadership, clients and strategic partners to identify fresh avenues for expansion and to advance sustainable growth. 

Koltin Consulting Group CEO Allan Koltin said: “Lisa brings a rare combination of strategic vision, deep industry experience, and trusted relationships across the accounting and financial services profession. 

“As our firm continues to grow and the profession evolves – particularly with the influence of private equity and new ownership and governance models – this role was a natural next step for KCG. Lisa is the ideal leader to help shape and drive our next phase of growth.” 

Benson added: “The creation of the chief growth officer role reflects KCG’s commitment to being proactive, intentional and forward-looking in how we serve the profession. 

“Koltin Consulting has an extraordinary reputation for insight, integrity and impact. 

“I am excited to help build on that foundation with a laser focus on growth – supporting firm leaders and partners as they navigate change and pursue meaningful, long-term success.” 

RSM UK has named Caroline Hooley as its creative and communications director, a new senior role within the company. 

The audit, tax and consulting practice said the position has been created to strengthen its brand as it continues to grow and broaden its transatlantic partnership with member companies in the US, Canada and Ireland. 

Hooley has more than 20 years’ experience in creative and branded content roles across the UK, US, Europe and the Middle East. 

Her background includes work as a creative director, writer and multidisciplinary storyteller. 

She has previously held senior posts at Deloitte, National Grid and the British Library. 

RSM UK partner and CMO Catherine Riches said: “We are thrilled to have Caroline on board. Her proven track record of creative excellence and strategic vision brings a breadth of experience and insight of the kind that will help us unlock the huge potential that lies ahead of us. 

“I am excited about the fresh perspective and new energy that Caroline will bring. Her arrival marks an important milestone, and I look forward to working closely with her as we navigate the next phase of our growth.” 

Hooley added: “I am delighted to join RSM UK at what is a pivotal moment for the firm. The ability to connect expertise across disciplines, regions and borders and communicate it with clarity, creativity and purpose has never mattered more.”