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Policy Statement & Submission

2002/04/15

Auditing requirements for SMEs

15 April 2002
Our Ref: SME/CC/95

Dr Lee Kai Fat
Executive Director & Registrar
Hong Kong Society of Accountants
4/F Tower Two, Lippo Centre
89 Queensway, Hong Kong

 

Dear Dr Lee

Auditing requirements for SMEs

With the mission to promote, safeguard and represent the interest of our members as well as helping them do business, the Chamber monitors closely the needs and concerns of our members, especially small and medium enterprises. Recently we initiated a series of consulting exercise to solicit SME members' views on the difficulties they encountered when doing business in Hong Kong. A number of recommendations were made.

Among the wish list of SMEs, one suggestion was to lower their operating cost by reducing their burden in meeting reporting requirements. At one time the idea of SME companies being exempted from the requirement to provide audited reports had been suggested. The Chamber's position with respect to corporate governance is that a balance has to be struck between being overly stringent on the one hand, and being too relaxed on the other which could harm Hong Kong's integrity and reputation as place to list and invest. We have therefore come to the view that an appropriate balance should be to develop a set of simplified accounting standards for small and medium size enterprises.

Accordingly, we would like to recommend the Hong Kong Society of Accountants to consider developing such a set of accounting standards for SMEs with simplified requirements yet maintaining high standards. I hope you will find this recommendation of interest.

Yours sincerely

 

Dr W K Chan
Assistant Director - Business Policy

(Ends)

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