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Following is the speech (English only) by the Acting Secretary for Financial Services, Ms Au King-chi, at the Hong Kong Society of Accountants Annual Award Presentation Ceremony today (May 17):

Ladies and Gentlemen,

It is my pleasure to be here this evening to share the joy and pride of top students and scholarship awardees. Professional education is not received, it is achieved. To all of you who have achieved illustrious results in your examinations, I extend my warmest congratulations. Your admirable perseverance and hard work have set a good example for other aspiring students to follow.

Financial data, the backbone of all business transactions, has been around for millennia. Our ancestors in China were among the first people to use numbers, along those in Egypt, India and Mesopotamia. The abacus, a rudimentary form of calculator, if not a computer, is a Chinese invention. With financial data, and perhaps more specifically, the business activities that generated such data, came the need to put the data in reliable and readable form that can be used by parties to business transactions. The demand for expertise to carry out such a job naturally followed. The financial data that we see today is, of course, more sophisticated, but the fundamentals are very much the same - first, we need reliable data that can genuinely reflect the state of a business's affairs; and second, such data must be disclosed in a timely manner. Central to such disclosure is the role played by accountants, the lynch-pin of the business world.

With market globalization and free flow of capital and investment, the role of accountants has never become so prominent. Your role has extended beyond the traditional confines of ensuring the truth and fairness of financial statements to becoming the guardians of good corporate governance. As seen by recent events in the United States, the importance of good corporate governance standards cannot be over-emphasized.

In Hong Kong, good corporate governance is a matter close to our hearts. Good corporate governance is the key for a quality market. It attracts capital, as discerning investors vote with their money. In furtherance of our status as an international financial centre, it is our objective to keep Hong Kong's corporate governance on par with international standards; we have been working very hard towards this objective. But corporate governance can only be as good as the people seeking to apply them and in this context, accountants have an indispensable role to play. Indeed good corporate governance would not be attainable without a highly competent accounting profession that is independent, with integrity and adheres to the highest professional standards. The Hong Kong Society of Accountants has participated actively in promoting good corporate practices. Hong Kong's accounting standards are in line with the International Accounting Standards; since 1995, the Society has published six substantive guides and research papers on corporate governance covering, matters like business review in annual reports, formation of audit committees and directors' remuneration. I am sure good corporate governance practices feature prominently in the training programmes provided by the Society to its members and, in particular, to its over 16 000 student members.

In tandem with the economic development of Hong Kong, our accounting profession has grown from strength to strength. Today, our accountants are looking beyond Hong Kong to opportunities in the Mainland and the rest of the world. Our country's accession to the WTO brings about ample business opportunities together with enormous demand for accounting expertise. Hong Kong accountants are well placed to capitalize on such opportunities. We know the language, possess the professional skills, are familiar with international business practices and standards and well-placed in the international business network. 'Hong Kong accountants' is a reputable and unique brand name that provides invaluable scope for knowledge transfer and carries currency in the Mainland market.

However, these factors are no reasons for complacency. Working in the Mainland is a challenge. We may know the language, but we need to make allowances for the cultural differences. After all, we are One Country Two Systems. We may possess the professional skills, but I am sure none of you would under-estimate the challenge of passing the Mainland professional accountancy examination. As up and coming young accountants, you should continue to better equip yourselves. We should seek to improve both our written Chinese skills and Putonghua, and to keep ourselves abreast of the current affairs and development in the Mainland. Golden opportunities invite keen competition. We should be mindful that with the accession to WTO, the Mainland market will not only be accessible to Hong Kong accountants, but also to top accountants from all over the world. To stand out, you should make the best of our Hong Kong niche while at the same time, develop a broad international perspective with strong feelers for international affairs.

I understand that the Society has provided full support for its members in developing the Mainland market. Apart from the close liaison with its counterpart in the Mainland, the Chinese Institute of Certified Public Accountants, and the frequent visit programmes, the Society is also planning to launch a 'China Desk' programme in Guangzhou to provide information and referral services to its members. China updates are provided in the Society's journal, the Hong Kong Accountant. Government also liaises closely with the profession to explore ways in which we could facilitate accountants in seeking business opportunities in the Mainland. A useful exchange was just held last month.

Many of your seniors would have told you that pursuing a career in the accounting profession is a very fulfilling experience. I can see ample development opportunities both in Hong Kong and beyond. You have already demonstrated your abilities in the pursuit for excellence. With the same hard work and perseverance, I am sure you would offer your best and we would all stand to benefit from this process. I take this opportunity to wish all awardees and students a very successful and rewarding career.

Thank you.

End/Friday, May 17, 2002

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