Auditing and Assurance in Hong Kong, 2nd Edition

Dr. Peter Lau and Mr. Nelson Lam

About the Book

The authors of Auditing and Assurance in Hong Kong, Dr. Peter Lau and Mr. Nelson Lam, thank very much for the support of practitioners, professors and students, the first edition of Auditing and Assurance in Hong Kong has become one of the best-selling auditing textbooks in Hong Kong. In the past two years, the readers and the authors have witnessed significant amendments to the auditing and assurance standards: a total of 36 newly updated and clarified International Standards on Auditing, a clarified International Standard on Quality Control as well as their Hong Kong equivalents will become effective for audits of financial statements for periods beginning on or after 15 December 2009. Based on this background, Peter and Nelson have significantly revised the first edition and are proud to present to you this second edition

With reference to the latest developments in the auditing standards, in particular the convergence to the IAASB Clarity Project; accounting standards and professional ethics guidance in Hong Kong in 2009, Auditing and Assurance in Hong Kong (2nd Edition) is one of the first books to cover such latest regulatory developments in Hong Kong.

Auditing and Assurance in Hong Kong (2nd Edition) is not only designed for the university students and the candidates preparing their professional accountancy examinations of HKICPA, ACCA, AIA, HKAAT and LCCI, but also served as a quick reference to the professional accountants and practitioners in Hong Kong. Students and lecturers should find this a good textbook for undergraduate and postgraduate auditing courses. Practitioners will find the concepts and explanations useful in their daily work, and they can use the book as a guide in performing various audit and non-audit engagements.

Key Features:

  1. Coverage of latest auditing and assurance standards as well as the 36 newly updated and clarified International Standards on Auditing (IAASB Clarity Project) and their Hong Kong equivalents that will become effective for audits of financial statements for periods beginning on or after 15 December 2009
  2. Numerous illustrative examples, flowcharts, figures and diagrams
  3. Tailor-made illustrative flowcharts are incorporated to help the readers easily understand the complicated requirements of the new and revised standards
  4. Real-life cases sourced from companies listed on the Hong Kong Stock Exchange
  5. Inclusion of recent QP and ACCA exam questions

About the Authors

Dr. Peter Lau
Dr. Lau is Associate Dean and BBA Programme Director at the Hong Kong Baptist University (HKBU). He is an independent non-executive director and member of the Audit Committee of Hanison Construction Holdings Limited, which is listed on the Main Board of the Hong Kong Stock Exchange. He received a Bachelor of Commerce (Summa Cum Laude) in accounting from St. Mary’s University, an M.B.A. from Dalhousie University and a Ph. D. in accounting from the Chinese University of Hong Kong (CUHK). He is a Chartered Accountant (Canada), a Certified Management Accountant (Canada), a Fellow of the Hong Kong Institute of Certified Public Accountants (HKICPA), and an Associate of the Taxation Institute of Hong Kong.

Dr. Lau has more than 21 years of experience in teaching both graduate and undergraduate degree courses and conducting workshops, revision courses and examination assistance seminars for various auditing papers of the Association of Chartered Certified Accountants (ACCA) and HKICPA examinations. He has been conducting Final Examination (FE) revision courses and marked the FE of HKICPA’s Qualification Programme (QP) for many years. He has been serving or previously served as external examiner for various accounting programmes of the University of Hong Kong, the Open University of Hong Kong and the United International College of the Beijing Normal University and HKBU, and is now an examiner of Module C of the QP. Dr. Lau has published over 20 papers in the areas on auditing, taxation and accounting. He is the co-author of Intermediate Financial Reporting: An IFRS Perspective (with Mr. Nelson Lam) and Hong Kong Auditing (with Mr. A. Millichamp).

Mr. Nelson Lam
Mr. Nelson Lam is named as one of the most popular consultants and speakers in International and HK auditing and financial reporting standards. He is currently a practising accountant with his own professional firms in providing financial reporting, assurance and consultancy services to listed and private companies of different countries. Since 2005, he has been involved in over 400 consultancy projects, seminars and conferences relating to auditing and financial reporting standards in HK and other Asian cities. With MBA degree from the HK University of Science and Technology, MSc degree in finance from the CUHK and BBA (Hons) degree in accounting from the HKBU, he is also a member of several HK, UK and US professional bodies.

Mr. Lam currently serves as Vice-Chairman of Accounting Resources Centre operated under Accounting Development Foundation Limited, Panel Member of the Financial Reporting Review Panel in HK, Visiting Associate Professor in the United International College of the Beijing Normal University and HKBU in mainland China, and Council Member and Honorary Treasurer of the Society of Chinese Accountants and Auditors. He is also External Assessor in the examination papers of the HKICPA’s QP in Module A “Financial Reporting” (2004-2009) and Module C “Auditing and Information Management” (2001-2004) and Master Workshop Facilitator (2000-2008). In recognition of his contribution to the professional examination, HKICPA presented him with “Master Workshop Facilitator Award” in 2004 and 2007. In 2001, one of his real-life cases won the Championship in an accounting case competition, which consisted of entries from professors of different universities and industry professionals, and was collected in the book, Accounting Cases in Hong Kong. He is also the co-author of Intermediate Financial Reporting: An IFRS Perspective (with Dr. Peter Lau) and the book published in Singapore in 2008 is widely used by university faculty members and industry professionals in HK, Singapore, South Korea, Taiwan as well as other Asian and European cities.

Table of Contents

1. Introduction to auditing and assurance
2. The legal framework of auditing
3. The professional framework of auditing and assurance
4. The auditing process
5. The reporting framework of Auditing
6. Special audit situations
7. Special audit topics
8. Non-audit engagements
9. Current issues