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Audit is Required for All Companies

Audit of Financial Statements is Required for All Companies

Audit of financial statements is required for all companies, including companies falling within the reporting exemption, except dormant companies (section 447).

Under Hong Kong's Companies Ordinance (CO), a yearly statutory audit of financial statements is required for all companies in Hong Kong, including companies that are eligible for certain reporting exemptions and simplified reporting procedures. The only exception is dormant companies (section 447).

The CO requires that financial statements be audited by a Certified Public Accountant (CPA) in Hong Kong. The audited financial statements must include:

  • A statement of financial position (balance sheet)

  • A statement of comprehensive income (profit and loss account)

  • A statement of changes in equity

  • A statement of cash flows

  • An auditor's report

The purpose of the audit is to provide reasonable assurance that the financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and that they give a true and fair view of the company's financial position and performance.

There are a number of benefits to having audited financial statements, including:

  • Increased credibility and transparency

  • Improved access to finance

  • Reduced risk of fraud and errors

  • Compliance with regulatory requirements

If you are a company director in Hong Kong, it is important to ensure that your company's financial statements are audited annually by a qualified CPA.

How Bestar can Help

Bestar's partner is a well-known accounting and auditing firm in Hong Kong with over 20 years of experience. We have a team of experienced and qualified CPAs who can help you with all aspects of your company's audit, including:

  • Planning and conducting the audit

  • Reviewing your company's financial statements and accounting records

  • Assessing the risks of fraud and errors

  • Testing your company's internal controls

  • Issuing an auditor's report

Bestar's partner can also help you with other audit-related services, such as:

  • Preparing for audit readiness

  • Implementing best practices in accounting and internal controls

  • Providing advice on financial reporting and compliance

Bestar's partner audit services can help you to:

  • Ensure that your company's financial statements are accurate and reliable

  • Comply with all applicable laws and regulations

  • Increase your company's credibility and transparency

  • Improve your company's access to finance

  • Reduce your company's risk of fraud and errors

If you are looking for a reliable and experienced audit partner, Bestar's partner is a good choice.

Here are some of the specific ways that Bestar's parnter can help you with the audit of your financial statements:

  • We can help you to understand the audit process and to prepare your company for the audit.

  • We can review your company's financial statements and accounting records to identify and assess any risks of fraud or errors.

  • We can test your company's internal controls to ensure that they are effective in preventing and detecting fraud and errors.

  • We can issue an auditor's report that expresses their opinion on the fairness of your company's financial statements.

Bestar's partner can also provide you with advice on how to improve your company's financial reporting and compliance practices.

Overall, Bestar's partner can help you to ensure that your company's financial statements are accurate, reliable, and in compliance with all applicable laws and regulations. This can help to improve your company's credibility and transparency, increase its access to finance, and reduce its risk of fraud and errors.

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