In line with the requirements set forth by the Companies Ordinance, it is mandatory for limited companies based in Hong Kong to have their annual financial statements audited by a Certified Public Accountant who holds a valid practicing certificate from the Hong Kong Institute of Certified Public Accountants (HKICPA). Our procedures are in strict compliance with both the Hong Kong Accounting Standards and Auditing Standards as laid down by the HKICPA, and we adhere rigorously to the institute’s ethical guidelines. These guidelines prioritize the independence of our reporting accountants and the safeguarding of our clients’ confidential information.

Our auditing process is structured around the standards promulgated by the HKICPA. We take into account each client’s unique business environment and specific circumstances, enabling us to apply a targeted, risk-based approach that enhances the efficiency of our audits.

Statutory Audit Overview

According to the stipulations of the Inland Revenue Ordinance, limited companies in Hong Kong are obligated to file their Profits Tax Return, accompanied by audited financial statements. The Hong Kong Companies Ordinance, particularly sections 111(1) and 122(1), further mandates that limited companies prepare these audited financial statements for presentation at their annual general meetings. It is essential for a newly formed limited company to organize its initial audited financial statements within the first 18 months following incorporation.

Special Audit Circumstances

Beyond the regular statutory audit, there are scenarios requiring a specialized audit of a company’s financial records. These are primarily undertaken to protect shareholder interests and may be necessitated in situations such as:

• Probes into management malpractices;
• Transactions involving business sales and valuations;
• Activities related to mergers, acquisitions, or company listings;
• Evaluations focusing on operational effectiveness and managerial achievements.

Beyond Standard Audit: Assurance Engagements

There are instances, especially in government-led initiatives like the Innovation and Technology Fund (ITF), where companies are expected to submit an Annual Report validated by an assurance from a Certified Public Accountant with a practicing certificate. Should your organization require such specialized assurance services, our team’s wealth of experience is at your disposal.

We begin with a no-cost initial consultation and assessment to understand your company’s specific needs. Subsequently, we will provide a tailored quotation based on our preliminary evaluation of your company’s circumstances and the required service extent.