Statutory Audit Requirements
Legal Requirement: All Hong Kong private limited companies must conduct annual statutory audits by independent Hong Kong CPAs under the Companies Ordinance.
- Annual Audit Mandate: Independent CPA must audit financial statements annually
- AGM Presentation: Audited statements presented to shareholders at Annual General Meeting
- True and Fair View: Auditor expresses opinion on financial statement accuracy and compliance
- HKFRS Compliance: Statements prepared according to Hong Kong Financial Reporting Standards
- Tax Return Requirement: Audited statements required for Profits Tax Return filing with IRD
- Independent Verification: External validation of company's financial position and performance
Audit Process Stages
1. Planning & Risk Assessment
Understanding business, industry, controls, and identifying key risk areas
2. Fieldwork & Testing
Audit procedures, document examination, inquiries, and analytical procedures
3. Review & Evaluation
Assessment of audit evidence and evaluation of findings
4. Opinion & Reporting
Formation of audit opinion and preparation of auditor's report
HKB Audit Facilitation Services
Independent Audit Requirement: Statutory audits must be conducted by independent Hong Kong CPA firms. HKB coordinates with reputable CPAs to ensure seamless audit processes.
- Liaison & Coordination: Key point of contact between your company and independent auditors
- Audit Schedule Preparation: Complete, organized accounting records and necessary audit schedules
- Auditor Query Assistance: Address queries with clarifications and supporting documentation
- Draft Review Support: Help review draft audited financial statements from business perspective
- Process Efficiency: Streamlined communication minimizing operational disruption
- Cost Control: Efficient preparation helps control audit costs and timelines