Audit arrangement

Our audit arrangement services not only evaluate financial information but also consider the operational risks that businesses may face. Additionally, we provide targeted performance assessments based on a thorough understanding of a company’s financial statements and accounting records.

According to the Hong Kong Companies Ordinance and Inland Revenue Ordinance, companies established in Hong Kong are required to undergo compliance audits for their financial reports each fiscal year to fulfill tax reporting obligations. Specifically, after receiving the profits tax return, companies must submit an audited report, reviewed by a registered practicing accountant, to the Inland Revenue Department for assessment. This process ensures the accuracy and fairness of a company’s financials and determines the total tax liability for the fiscal year.

Neglecting audits over an extended period can lead to scrutiny by tax authorities or banks, potentially resulting in criminal charges such as money laundering, which can impact both the company and its directors.

As per legal requirements, companies established in Hong Kong must conduct annual audits for their financial statements, with audits performed by registered “practicing accountants” in Hong Kong.

All financial statements for companies or entities must comply with the Companies Ordinance and Hong Kong Financial Reporting Standards. For publicly listed companies in Hong Kong, additional audit requirements apply under the Hong Kong Stock Exchange rules.

All Hong Kong limited companies are mandated to undergo statutory audits (based on Hong Kong Financial Reporting Standards (“HKFRS”) or Small and Medium-sized Entity Financial Reporting Framework (“SME-FRF”) to prepare the financial statements). Generally, small and medium-sized enterprises follow the SME-FRF for their audits.