Audit Arrangement

and tax filing

According to legal requirements, Hong Kong limited companies are required to prepare annual financial statements and have them reviewed by auditors. Customers need to provide the following documents/information for quotation purposes

Financial statements and auditor's report for the previous year (not applicable to newly established companies); and
Bank Statement

Statutory audits refer to mandatory audits prescribed by law. According to the provisions of Hong Kong's Companies Ordinance, a limited company established in Hong Kong must appoint a Hong Kong certified public accountant to audit the company's accounts (tax returns) every year. Auditors will review the income statement, balance sheet and related bills in accordance with auditing standards, and evaluate whether the accounting system formulated by the company complies with generally accepted accounting principles and whether the accounting standards are effective in actual application.

Our partners provide enterprises with statutory audit reports that comply with auditing standards, and issue audit opinions on the authenticity, fairness and consistency of accounting treatment methods of the enterprise's financial statements and accounting records. If necessary, we will issue a management proposal, report major problems to the client's management, propose improvement plans, and provide reference suggestions on how to improve governance levels.

Information required for audit:

Audited annual financial statements (including income statement, balance sheet and cash flow statement)
Accounting accounts for the current year (including bank statements, contracts, expense invoices and documents, etc.)
List of affiliated companies and related parties involved
Other relevant information

Audit (audit) process
Develop an audit plan and determine audit objectives
Understand the company's internal control system and evaluate it
Collect and record or copy relevant information
Compliance testing and result evaluation
Substantive controls and results evaluation
Prepare the audit report and forward it to the audited company

1. Statutory audit

Internal auditing is an economic supervision activity established within an enterprise. Internal audit focuses on corporate financial data and internal controls, and affects all aspects of corporate operations, such as internal management, marketing planning, operational risks, product quality, and corporate operating environment. We have many years of practical experience in serving different industries and are committed to helping companies solve various problems that affect operations through internal auditing.

Audit scope:

Financial audit arrangements
Operational audit arrangements
Management audit arrangements
risk management

Audit object:

Physical: Audit inventory, fixed assets, etc.
Accounts: audit the claims and debts arising from the provision and sale of goods or services
Rules: Audit the implementation process and results of systems, standards, processes, etc.
Responsible person: Audit the period responsibilities and end-of-period status of the economic responsible person

Services include:

Operational audit arrangements
Compliance audit arrangements
Process audit arrangements
Review internal control systems and provide improvement plans
Assist in establishing internal audit mechanism
Training internal auditors
Outsourcing of internal auditors

2. Internal audit

What is audit? Why is audit needed?

In today's increasingly complex business environment, companies sometimes need to conduct special purpose audits based on different operational purposes and needs to meet different management objectives and needs. Our partners have experience in various industries and for different purposes, providing reliable basis for investors' decision-making. Accountants can provide special purpose audits to audit the following financial information and issue audit reports:

Financial statements prepared on a special basis (for example, tax basis, cash basis, and regulatory reporting requirements)
one or more components of a financial statement
Contract compliance
Summary financial statements