Hong Kong is facing an exodus of educated workers on a scale not seen since the early 1990s, that is impacting the city’s many functions, including auditing services.
According to the Financial Reporting Council (FRC), Hong Kong’s audit regulator, the emigration of experienced staff has resulted in a shortage of qualified auditors in the city, seriously impacting its audit work.
“It is also the most commonly cited reason for audit work not being performed properly and supervision and review not being performed on a timely basis and sufficiently.”
The report said that Hong Kong is facing challenges in maintaining audit staff at appropriate levels. In response to the situation, FRC recommends that firms decline engagements when they do not have the time and resources to conduct a high-quality audit.
The ranking was published by the International Institute for Management Development (IMD), a Switzerland-based business school. The “Appeal” factor evaluates the extent to which an economy attracts foreign talent and retains local talent.
On top of the emigration wave, the city is also experiencing a significantly higher turnover rate.
The city’s turnover rate of accounting and legal staff reached 11 percent in 2021, a nine percent jump from the previous year, said Kelvin Wong, the chairman of FRC, in a local press briefing on June 23.
HK Children Seek Education in the UKWhile Hong Kong is facing challenges with skilled worker shortages, primary and secondary schools in the UK have been receiving a high volume of applications for enrolment of children from Hong Kong, according to the latest data released by the UK Department for Education (DfE).
The report indicates that UK schools received an estimated 8,500 applications for school placements for children from Hong Kong for the current academic year, second only to the applications of children from Ukraine who were displaced by the Russian invasion.
Among the 8500 applications, 8000, or 93 percent, have received offers, of which 5,800 were for primary schools and 2,700 were for secondary schools.
The data was collected from local authorities in Britain through a survey. It covers applications and offers made for the current 2021-22 academic year, covering the period from Sept. 1, 2021, to May 27, 2022.
As the National Security Law continues to violate the freedoms and rights of Hong Kong residents, the UK began to accept BN(O) visa applications on Jan. 31, 2021, providing those with BN(O) status or a Hong Kong passport a path to immigration.
The BN(O) welcome programme enables BN(O) status holders in Hong Kong and their eligible family members to apply for visas to live, work, and study in the UK. In addition, it offers them the opportunity to obtain British citizenship after living in the UK for five years.