2025年年终审计的审计焦点

About the Accounting and Financial Reporting Council The Accounting and Financial Reporting Council (AFRC) is an independentbody established under the Accounting and Financial Reporting CouncilOrdinance. As an independent regulator, the AFRC leads the accountingprofession by upholding professional standards, safeguarding the publicinterest, and promoting the profession’s healthy development. For more information about the statutory functions of the AFRC, please visitwww.afrc.org.hk. Introduction Navigate the dynamic risk environment of 2025 The challenging economic conditions of 2025, coupled with new and increasinglycomplex business models, present significant challenges for both companies andtheir auditors. Ongoinggeopolitical and economic uncertainties continue to affect businessoperations, with fluctuating interest rates and shifting consumer sentiment furtherexacerbating challenges related to profitability, liquidity, and an entity’s ability tocontinue as a going concern.Meanwhile, the rapid technology advancements, suchasthe adoption of artificial intelligence(AI),are fundamentally transformingbusiness processes and introducing new risks to operational reliability, data security,and cybersecurity.These factors are not only testing business resilience but alsoincreasing the risk of material misstatements — whether due to error or fraud. The imperative of audit quality and heightened professional scepticism High-quality audits are a cornerstone of market integrity.The role of an auditorextends beyond simply ensuring compliance; they are critical for building investortrustand ensuring that financial statements provide an accurate and reliablereflection of a company’s performance and position.This responsibility becomeseven more important during uncertain times, when capital markets rely heavily oncredible information. A typical audit approach is insufficient in today’s rapidly evolving risk landscape.Auditors must combine strong technical competence with heightened professionalscepticism to identify and assess the risk of material misstatement in financialstatements, and to plan and perform audit procedures in response to these risks.Additionally, auditors must ensure that sufficient documentation is maintained toclearly demonstrate the work performed, particularly in areas involving the exerciseof professional judgement. Purpose of this publication This publication offers an overview of the macroeconomic and market landscape in2025.Ithighlights key focus areas for 2025 year-end audits and firm-levelconsiderationsto ensure the delivery of high-quality audits amidst a complex andevolving landscape. However, it is important to note that this publication is not intended to serve as acomprehensive guide for auditors preparing for their 2025 year-end audits.Auditorsshouldexercise professional judgement and consider the specific facts andcircumstancesof their audit clients when determining the appropriate auditapproach and responses. Page Section 1Audit implications of the current macroeconomicand market landscape1 - 2 Section 2Engagement-specific focus areas I.II.III.IV.V.VI.Risk assessmentImpairment of non-current assetsGoing concern assessmentAddressing fraud risksGroup auditFirst-year audit345678 Section 3Firm-specific key considerations I.II.III.Set the right tone at the topBuild competence in the evolving audit professionClosely monitor audit partners’ workload and theirinvolvement in audits91011 ANNEXAdditional guidance and resources12 Section 1 Auditimplicationsofthecurrentmacroeconomic and market landscapemacroeconomic and market landscape Challengingmarket and economic conditions create an environment wherecompaniesmayexperienceextendedfinancialpressure,increasingtheirsusceptibility to management bias or fraud.Auditors should carefully considercurrentmarket and economic conditions and incorporate them into the riskassessment and audit planning process. This section highlights key developments within the current macroeconomic andmarket landscape.It provides insights into areas where auditors should exerciseheightened professional scepticism and adapt their audit strategies accordingly.Specific focus areas, indicated by, will be discussed in detail in Section 2. Geopolitical uncertaintyOngoinggeopolitical tensions and tariff-driven uncertainties introduce complexities for businesses, which may affect their operations, profitability,liquidity, as well as financial reporting. Matters to consider: Inventoryvaluation:Assesswhether write-downs of inventories arenecessary due to rising selling costs and/or weakened customer demand.Revenuerecognition:Evaluatewhether and how tariffs may affectcontractswith customers,e.g.,transaction price,and measurement ofprogress toward satisfaction of a performance obligation under a cost-to-cost input method.Onerouscontracts:Ensure adequate provisions are made for onerouscontracts where the unavoidable costs of fulfilling the contract exceed thee