T K Lo & Co

Hong Kong CPA Firm



Quality Control Policies for Audit & Assurance Services


1.       The Firm has an overriding commitment to quality of work performed.


2.       Each engagement must have an engagement partner be responsible for engagement performance and authorizing the provision of service.


3.      Each engagement must be subject to the Firm’s appropriate QC Review under the supervision of a QC Reviewer, being a partner or the Firm’s personnel with relevant qualification and experience.


4.       Each engagement must be performed to comply with professional standards and regulatory and legal requirements, and related report must be issued in a manner appropriate in the circumstances. For the service of audit of financial statements, the Firm prohibits any departure from prevailing reporting standards and demands the exercise of professional judgement, skepticism and actions.


5.       The Firm and its personnel will maintain independence of mind as well as in appearance for acceptance and continuance of engagements and will avoid any kind of conflicts of interest. Any threat to independence and conflicts of interest shall be reported to the partners for taking appropriate action. Safeguards in the Code of Ethics for Professional Accountants (COE) will be employed to adequately eliminate or reduce to an acceptable level any identified threats to independence.


6.       Before the acceptance of new client, the Firm must perform an integrity assessment to both the management and operation of the client and perform a competence assessment to ourselves to meet the expectation to our services or the client or other regulatory authorities. These two assessments need to be performed again, if there is an obvious change in management or nature of operation of a client. Anti-Money Laundering (AML) & Combating the Financing of Terrorism (CFT) will be taken into account in the integrity assessment.


7.       Appropriate consultation shall be taken place on difficult or contentious matters relating to engagement. In case of differences of opinion, the final judgment is on the decision of majority of partners of the Firm.


8.       The Firm will maintain a monitoring program to ensure our system of QC are relevant, adequate, operating effectively and complied with in practice.


9.       The Firm will require appropriate documentation to provide evidence of the operation of each element of its system of QC.


10.    The Firm will ensure engagement teams to complete the assembly of final engagement files on a timely basis after the engagement reports have been finalized, maintain the confidentiality, safe custody, integrity, accessibility and retrievability of engagement documentation and keep the engagement documentation for a period sufficient to meet the needs of the Firm or as required by law or regulation.


11.    The Firm will ensure the compliance of anti-corruption law to prevent from any abuse of authority for personal gain at the expense of other people and any erosion of fairness in the performance of duties. Furthermore, the Firm will encourage the awareness in client management of conflicts of interest issues and the relevant disclosures and consent among stakeholders.


12.    The Firm will ensure the service quality in audit procedures of understanding, evaluating, criticizing and communicating.


13.    The Firm will ensure the compliance of the Personal Data (Privacy) Ordinance (Cap. 486) in respective of information obtained in provision of professional services and the recruitment of professional and general staff members of the Firm.


14.    Except for expert consultation, the Firm will not subcontract any audit or assurance service to outsider to ensure our direct quality control. On the contrary, the Firm will not perform any audit or assurance service under subcontracting arrangement for another CPA practice.


15.    The Firm will monitor the progress of practical experience training and acquisition among student members of relevant accountancy professional body under our development commitment specified in employment contract and/or separate agreement.




16.   We have implemented field-work-suspension policy since 6 Jan 2022 about our immediate suspension of any co-worker’s attending to client office in coming across uncertainty of pandemic development in Hong Kong or specific risky situation of any clients or ourselves. The reason of the suspension should have informed the relevant clients and the resumption of services were (will be) approved by the Firm after the uncertainty has been clarified or controlled. This policy will apply to all our services continuously during the pandemic period and may affect the progress of scheduled jobs or even reporting deadlines of certain clients.


17.   The Firm will set up Quality Objectives, identify Quality Risks and design & implement Specified Reposnes for:-

n   Identifying, evaluating and addressing threats to compliance with the relevant ethical requirements,

n   Identifying, communicating, evaluating and reporting of any breaches of the relevant ethical requirements and appropriately responding to the causes and consequences of the breaches in a timely manner,

n   Receiving, investigating and resolving complaints and allegations about failures to perform work in accordance with professional standards and applicable legal and regulatory requirements, or non-compliance with the firm’s policies or procedures established in accordance with the HKSQM, and

n   Addressing circumstances when;-

u  the firm becomes aware of information subsequent to accepting or continuing a client relationship or specific engagement that would have caused it to decline the client relationship or specific engagement had that information been known prior to accepting or continuing the client relationship or specific engagement

u  the firm is obligated by law or regulation to accept a client relationship or specific engagement.





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Staff Declaration & Report Forms

Gift & Advantage Acceptance Report
Conflict of Interest
Suspicious Transaction Report

Management Reference

Prevention of Bribery Ordinance Extract
Typhoon & Rainstorm Arrangment
AML Jurisdictions Attention List
Assignment Appraisal Form
Appraisal Form