Highlights

PRACTICAL AUDIT MASTER TRAINING SERIES (2026/27): Mini Workshop: Practical Audit Case Study – Applying Revised Integrated Auditing Standards_Transforming Compliance Checklists into an Active Defensive Shield for the Whole Audit Team

Executive Highlights & Strategic Purpose

With regulatory inspections from oversight bodies and practice monitoring committees intensifying across the profession, auditing standards can no longer be executed as isolated, box-ticking checklists. Under HKSA 315 (Revised), HKSA 240 (Revised), HKSA 570 (Revised), HKSA 540 (Revised), and HKSQM 1, audit practitioners must deploy an integrated methodology that bridges accounting substance with indisputable, verifiable audit evidence.

“Auditing standards do not operate in silos — risk assessment, management override scrutiny, asset impairment evaluations, and going concern stress tests must function as a synchronized, defensible shield in every audit file.”

PRE-WORKSHOP ADVANCE CASE STUDY & MINDSET CHALLENGE

To maximize practical learning, provoke fresh thinking, and simulate authentic audit dilemmas, a detailed Master Practical Audit Case Study will be issued to registered participants prior to the workshop for mandatory advance reading. Audit teams will have the opportunity to analyze the facts beforehand and reflect on:
• How would you independently respond to the client's accounting treatments and going concern strains as the audit team?
• What underlying assumptions, management assertions, or third-party representations warrant immediate challenge?
• Check your preliminary judgments against what the course instructors and revised standards teach during the workshop.

Through this interactive structure, the workshop is engineered to directly challenge the auditors' mindset — training practitioners to actively exercise professional skepticism and sound professional judgment during live discussions rather than passively receiving regulatory theory.

Whole-Team In-House Learning & Practice Integration

Audit quality is a firm-wide collective responsibility. This mini workshop offers a premier shared learning opportunity for Audit Staff, Seniors, Managers, and Engagement Partners to attend together. Teams can study in-house, discuss complex client dilemmas openly, provoke fresh critical thinking, and seamlessly integrate these reinforced methodologies into future audit engagements.

Workshop Curriculum & Practical Case Study Modules

▪ The Integrated Standards Framework in Action: Operationalizing the dynamic synergy among HKSA 315 (Risk Identification), HKSA 240 (Fraud & Management Override), HKSA 570 (Going Concern Scrutiny), and HKSA 540 (Accounting Estimates). Transitioning from passive checklists to an active, evidence-driven audit posture.

▪ Software Capitalization vs. Immediate Impairment (HKAS 38 & 36): Deconstructing the 6 strict 'PIRATE' criteria for capitalizing internally generated software. Identifying severe impairment triggers arising from tech obsolescence and competitor AI emergence. Resisting management bias and pressure to defer impairment losses.

▪ Going Concern Under Stress & 3-Way Forecasting (IAS 1.25 & HKSA 570): Enforcing management's statutory duty to prepare a cohesive, rolling 12-month 3-way financial forecast (P&L, Balance Sheet, and Cash Flow). Auditing burn-rates, liquidity runway, and rigorous sensitivity stress tests.

▪ The Commercial 'Catch-22' Loan Dilemma & Third-Party Audit Evidence: Addressing conditional bank sanction letters that depend on clean audit reports. Establishing why verbal shareholder promises carry zero evidentiary weight and enforcing the dual-test rule: legally binding commitment plus verified financial capacity.

▪ Regulator-Proof Working Paper Architecture (Section Q): Structuring the Track Q-100 Management Challenge Log and Track Q-200 Contradiction File to document professional skepticism, auditor pushback, and contradictory market facts in a manner that withstands practice monitoring scrutiny.

▪ Cross-Grade Case Discussion & In-House Team Debate: Interactive, cross-rank team deliberations evaluating realistic audit dilemmas. Comparing pre-workshop participant solutions against technical standards to align professional skepticism across the entire firm.

END-OF-WORKSHOP KNOWLEDGE ASSESSMENT QUIZ
At the conclusion of the workshop, an interactive multiple-choice assessment quiz will be conducted to evaluate and reinforce the practical audit knowledge grasped by participants. The quiz tests essential competencies across revised auditing standards, management bias detection, external confirmations, and going concern evaluations, ensuring clear learning outcomes and immediate applicability to live engagements.

NOTE: No video playback will be available.

Speaker(s)

Mr. KC Cheng FCA
Master for Professional Accounting | Master of Arts (English for the Professions)
 

KC Cheng is a Chartered Accountant with extensive leadership experience in auditing, accounting, and corporate finance. Having served as a technical and audit partner at Deloitte and co-head of its corporate finance division, he has overseen audits of major listed corporations, acted as reporting accountant in major IPOs, and advised on complex listing rule disclosures and Takeovers Code matters. He specializes in forming clear, defensible professional opinions on high-risk, contentious transactions.

Beyond auditing, KC’s career encompasses senior corporate executive experience in a listed manufacturing group and over a decade heading his own advisory practice specializing in Pre-IPO advisory, tax investigations, M&A, and cross-border commercial disputes. Equipped with dual Master’s degrees in accounting and professional communication, KC provides practitioners with authoritative, practical guidance to survive regulatory inspections, articulate professional skepticism, and defend working papers with conviction.