According to the Companies Ordinance, annual financial statements of a limited company incorporated in Hong Kong is required to be audited by a Certified Public Accountant with a practicing certificate issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). Our work follows the Hong Kong Accounting Standards and Auditing Standards as required by the HKICPA and is under the governance of the institute’s ethical standards which emphasises on the independency of the reporting accountants and the confidentiality of clients’ information.
We perform our audit engagements by reference to the auditing standards issued by the HKICPA while at the same time we will assess the business nature and the special situation of each client in order to carry out a risk-based approach for an efficient audit.
Statutory Audit
One of the statutory requirements under the Inland Revenue Ordinance states that a limited company incorporated in Hong Kong has to submit its Profits Tax Return together with the audited financial statements. Moreover, according to the Hong Kong Companies Ordinance section 111(1) and 122(1), limited company should prepare its audited financial statements and lay before its annual general meeting. Therefore, a newly incorporated limited company should prepare its first audited financial statements within 18 months since its incorporation.
Special Audit
Apart from the annual statutory audit, special audit on financial statements of the company is required in one of the following situations in order to protect the interests of shareholders:
- Investigation on management misconduct;
- Sale of business(es) and related valuation;
- Merger & acquisition or listing; and
- Reporting on operation efficiency and management performance, etc.
Assurance Engagement other than Audit
