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Cost-effective Audit for Charities - Hong Kong

Updated: Jun 30


Cost-effective Audit for Charities - Hong Kong | Bestar
Cost-effective Audit for Charities - Hong Kong | Bestar

Cost-effective Audit for Charities - Hong Kong


Here are some ways to achieve a cost-effective audit for your charity in Hong Kong:


Preparation:


  • Understand Requirements: Familiarize yourself with the Hong Kong Financial Reporting Standards for Private Entities (HKFRS for Private Entities). This will help you ensure your financial records are maintained properly for a smoother audit.

  • Maintain Clean Records:  Keep good accounting records with clear documentation for income, expenses, and assets. This reduces the time auditors need to spend clarifying information.


Finding an Auditor:


  • Get Quotes:  Approach several accounting firms specializing in non-profit audits. Explain your charity's size and complexity to get quotes tailored to your needs.

  • Consider Smaller Firms: Smaller accounting firms might offer competitive rates compared to larger firms, especially for less complex audits.

  • Seek Recommendations: Talk to other charities in Hong Kong to see if they have recommendations for auditors who understand the non-profit sector and offer cost-effective services.


Scope of Audit:


  • Discuss Needs:  Clearly communicate your audit needs to the chosen firm. If a full audit isn't mandatory, discuss the possibility of a less extensive review engagement.

  • Focus on Material Risks:  Highlight any areas of concern you have regarding your finances. This helps auditors focus their efforts on high-risk areas.


Additional Tips:


  • Utilize Technology: Explore cloud-based accounting software to streamline recordkeeping and ease auditor access to your financials.

  • Prepare in Advance:  Have all necessary documents readily available for the auditors to minimize delays and additional charges.

  • Open Communication:  Maintain clear communication with the auditors throughout the process. Address their questions promptly to avoid delays.


Resources:


  • The Hong Kong Institute of Certified Public Accountants (HKICPA) offers resources on auditing charitable institutions.

  • The Good Practice Guide on Charitable Fund-raising from the Hong Kong government provides information on financial reporting for charities.


Remember, even with cost-effective measures, an audit is crucial for maintaining transparency and public trust in your charity.


How Bestar's Partnered Firm can Help


Bestar's partnered firm brings several key benefits to the table for your charity in Hong Kong:


Expertise in Non-Profit Accounting:


  • Understanding of unique needs:  Bestar's partnered firm understands the specific accounting standards and regulations applicable to non-profits, which can differ from for-profit entities.

  • Experience with grant funding: They have experience handling complex issues like grant funding, fundraising activities, and restricted donations.

  • Knowledge of best practices: They can advise on best practices for financial reporting and internal controls specifically tailored to the non-profit sector.


Streamlined Audit Process:


  • Reduced time and cost: Their familiarity with non-profit financials allows for a more efficient audit process, potentially saving you time and money.

  • Identification of risk areas: They can identify potential risk areas in your financial management and suggest improvements in internal controls.


Enhanced Transparency and Credibility:


  • Assurance for donors:  An audit from a reputable firm specializing in non-profits can increase trust and confidence among donors and grantors.

  • Improved governance: Their guidance can strengthen your charity's governance practices and financial accountability.


Additional Services:


  • Tax compliance: Bestar offers tax filing and compliance services specific to non-profits.

  • Financial consulting: They may provide broader financial consulting services to help your charity with budgeting, forecasting, and financial planning.


By partnering with Bestar's partnered firm, you gain valuable expertise, save time and resources, and enhance your charity's credibility and financial health.




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