Customised Audit Solution

According to the Hong Kong Companies Ordinance, all Hong Kong Limited Companies are required to have their financial statements audited by a Certified Public Accountant (CPA). The audited accounts are required to be submitted together with the annual profits tax return filing to the Inland Revenue Department (IRD) as well, unless the company qualifies as a small corporation. It is to be noted that the filing exemption for the IRD does not extend to the statutory requirement of the audit under the Companies Ordinance and the directors are liable for non-compliance.

Here are 3 key areas where your business can benefit from an external audit.

Accountability

Financial statements are the main source of accountability of management performance by the shareholders. Relying on external verification by auditors, shareholders will gain reasonable assurance that the accounts are free from material misstatements and can therefore be relied upon to be presenting true and fair view of the affairs of the company.

Reliability

Apart from the needs of owners, other users of financial statements may need to place reliance on the financial statements. An External audit is a means of providing a reasonable basis for the users to place reliance on financial statements. 

Examples of stakeholders (other than shareholders) that rely on audited financial statements include the following:

• Tax authorities rely on audited financial statements to determine the accuracy of tax returns filed by the companies.
  
• Financial institutions require audited accounts of prospective borrowers for assessing the credit risk by analysing their liquidity and financial position.
  
• Management uses the audit exercise to re-evaluate the company's risk management processes and internal control system by considering the feedback given by external auditors during the course of the audit in this regard.
  

Scope

The purpose of audit is confined to provide reasonable assurance in order to avoid excessive time and cost in the performance of the audit that may outweigh any benefit that may be derived from the enhanced assurance. 

Our tailored audit services can help you build trust and confidence through transparency, clarity and consistency. Use Encore Pro to grow your business, whether you’re already at the top or you’re on your way up!

Audited financial statements serve a wider purpose than mere statutory compliance and government reporting. Shareholder information and reporting is an essential function of the audited financial statements. Other stakeholder groups, including finance partners, banks, and even commercial partners often require audited accounts to vet a company and assert the sustainability before engaging in business with them.

Encore Pro’s Audit services are designed to help your business mitigate risk, create new efficiencies and better support strategic objectives.  In addition to doing basic review of company financials, our auditors review your processes and make recommendations to maximise productivities. We offer a range of world-leading customised audit services to cover your entire value chain – from processes to organisation, service and systems.