Auditing

Statutory Audit

Our teams of Certified Public Accountants (practicing) in Hong Kong provide one-stop audit services for small businesses. the audit fee for companies that do not start a business or with a little transaction, the fee as low as HK$3,000, and the audit fee for rental companies and small businesses are HK$6,000. (For details, please refer to the following fee schedule)

Our Hong Kong Certified Public Accountants teams also provide various assurance services for Government's subsidies scheme, technology voucher program (TVP), Enterprise support scheme (ESS), and various government-funded schemes, and we also accept the engagement in accordance with Hong Kong Standard on Related Services 4400, “Engagements to Perform Agreed-upon Procedures Regarding Financial Information” issued by the Hong Kong Institute of Certified Public Accountants (HKICPA), and we will indicate so in our report. (i.e., gross taking turnover report), for this kind of report the fee will start at HK$3,000.

We also provide accountancy and taxation services for SMEs. Our professional accountants provide bookkeeping services to assist you in preparing financial records such as profit and loss statements, balance sheets, trial balance sheets, and vouchers, using our popular accounting system to prepare the financial records in compliance with Hong Kong accounting standards and for statutory audit purposes. We also provide, tax planning consultation, company registration, and secretarial services, our teams of Certified Public Accountant sincere served in Hong Kong for 20 years, we provide one-stop tax reporting, provide SMEs tax solutions, our fees are transparent and reasonable.

Every limited company registered in Hong Kong must have its financial accounts audited by auditors registered under the Professional Accountants Ordinance (PAO) annually. There is no mandatory year-end date for Hong Kong companies, but 31 March and 31 December are the more common ones.

The responsibilities of auditor and director show after the pricing table.

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AUDITING PRICING TABLE

This Pricing table is for reference only
Our fees are computed on the basis of the time spent on your affairs by our staffs and on the levels of skill and responsibility involved.

STANDARD

Description
HK$ 6,000/yr.
Rental Company or minimal transactions business

  • Turnover does not exceed $2M
  • One to two units for rental income
  • Regular expenses incurred (i.e. utilities, sundry expenses and mortgage repayment)
  • Bank statement not more than one page per month.
HOT!

BUSINESS

Description
HK$ 8,000/yr.
Small size business


  • Turnover between $2.1M to $3M
  • Bank statement around one to two pages for each month

PREMIUM

Description
HK$ 10-12K/yr. 
small size trading or business


  • Turnover between $3.1M to 10M
  • Bank statement between two to four pages for each month

SUPREME

Description
HK$ 14-22K/yr.
Manufacturing/Retails/
Stationery/Electronic/trading with medium size transactions

Turnover between $11M to $20M


Bank statement between five to eight pages for each month





UlTIMATE

Construction/Importer/Exporter/

Trading/Retails/Manufacturing
with a large size of transactions

For turnover exceed $20M

- 21M to 30M $25K-$28K/yr.

- 31M to 60M $31-38k/yr.

- 61M to 90M $42-50k/yr.

- 91M to 150M $55-60k/yr.

- 160M to 200M $65k/yr.

- 200M or above $70k/yr. up

Responsibilities

of auditor and director




Responsibilities of auditor 


We have a statutory responsibility to prepare a report to the members to state whether in our opinion the financial statements of the Company for the financial year are prepared, in all material respects, in accordance with the SME-FRS and whether they have been properly prepared in compliance with the CO. We shall also state our opinion in the auditor's report if we are of the opinion that: 


a. adequate accounting records have not been kept by the Company; or 


b. the financial statements are not in agreement with the accounting records in any material respect; and 


We shall also state the fact in the auditor's report if we have failed to obtain all the information and explanations that, to the best of our knowledge and belief, are necessary and material for the purpose of the audit.

 

In addition, where the financial statements do not contain information relating to directors' remuneration or loans to officers under section 383(1) of the CO, the CO requires us to include in our report, as far as we are reasonably able to do so, a statement giving the particulars that are required to be, but have not been, contained in the (consolidated)* financial statements.


We have a professional responsibility to report if the financial statements do not comply in any material respect with SME-FRS, unless in our opinion the noncompliance is justified in the circumstances. In determining whether or not the departure is justified, we consider: 


a. whether the departure is required in order for the financial statements to give a true and correct view; and


b. whether adequate disclosure has been made concerning the departure.


We are required to read the information in the directors' report for the financial year to identify and report inconsistencies with the financial statements. As required by the CO, if we are of the opinion that the information in the directors' report for a financial year is not consistent with the financial statements for the financial year, we shall state that opinion in our auditor's report; and we may bring that opinion to the members' attention at a general meeting. However, we are not required to audit or review the directors' report and accordingly we will not express an opinion or review conclusion or any assurance on it.


Responsibilities of director


Our audit will be conducted on the basis that you acknowledge and understand that you have responsibility: 


a. To ensure that the company satisfies the relevant requirements under section 359 of the Companies Ordinance ("CO") such that the company is eligible to take advantage of the reporting exemption; 


b. To prepare financial statements of the Company for the financial year in accordance with the Small and Medium-sized Entity Financial Reporting Standard (SME-FRS) and the CO;  


c. To take all reasonable steps to ensure the Company keeps sufficient accounting records which show and explain the transactions of the Company, and disclose with reasonable accuracy, at any time, the financial position and financial performance of the Company; 

 


d. To ensure that the financial statements comply with section 383 (Notes to Financial Statements to Contain Information on Directors' Emoluments etc) of the CO which must contain in the notes to the financial statements, the information prescribed by the Companies (Disclosure of Information about Benefits of Directors) Regulation (Cap. 622G); 


e. For such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 


f. To provide us with:

(i) Access to all information of which you are aware that is relevant to the preparation of the financial statements such as Company's accounting records and all other relevant records and documentation, including minutes of all management and shareholders' meetings and other matters; 

(ii) Additional information that we may request from you for the purpose of the audit; and 

(iii) Unrestricted access to persons related to the Company from whom we determine it necessary to obtain audit evidence; 


g. To provide us with (i) any proposed written resolution and (ii) any other document relating to the resolution that is required to be sent to a member of the Company, or before the circulation of written resolution to a member of the Company; and 


h. To notify us in respect of any passed written resolution within 15 days after resolution is passed.


You are also responsible for the preparation and approval of the directors' report in accordance with the CO.



Companies Ordinance

Key changes under the Companies Ordinance (Cap. 622)

What are the general requirements for financial statements under the new CO?

 

The general requirements are –

  • a company’s directors must prepare for each financial year financial statements that comply with sections 380 and 383 (section 379(1)); 
  • if the company is a holding company at the end of the financial year, consolidated financial statements must be prepared instead unless the company is a wholly owned subsidiary or a partially owned subsidiary where no member requests for the preparation of consolidated financial statements (sections 379(2) and 379(3));
  • if the company is a wholly owned subsidiary or a partially owned subsidiary where no member requests for the preparation of consolidated financial statements, company level financial statements must be prepared (section 379(1) and section 379(3) 






  • subject to permitted exclusions, the consolidated financial statements must include all the subsidiary undertakings of the company (section 381);
  • unless the company falls within the reporting exemption, the financial statements must give a true and fair view of the financial position and financial performance of the company (sections 380(1), (2) and (7));
  • the financial statements must comply with the accounting disclosure requirement in Schedule 4 (section 380(3));
  • applicable accounting standards issued or specified by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) (sections 380(4), 380(8) and the Companies (Accounting Standards (Prescribed Body)) Regulation, Cap. 622C);





  • the notes to financial statements must contain the information prescribed by the Companies (Disclosure of Information about Benefits of Directors) Regulation, Cap. 622G (“Cap. 622G”) (section 383); and
  • the financial statements must be audited (section 405).   
  • Other requirements are in relation to the laying, sending, publication (sections 429 to 432 and 436) and voluntary revision of financial statements (section 449 and the Companies (Revision of Financial Statements and Reports) Regulation, Cap. 622F).   
  • The above requirements do not apply to a company that is dormant (section 447).

What is “reporting exemption”?


“Reporting exemption” means the exemptions available to private or guarantee companies (other than certain companies specifically excluded) that are qualified to prepare simplified accounts and directors’ reports. The exemptions are in respect of specific requirements relating to the preparation of financial statements, directors’ and auditor’s reports and they include –

 


  • no requirement to disclose auditor’s remuneration in financial statements (section 380(3) and Schedule 4 Part 2);

 

  • no requirement for financial statements to give a “true and fair view” (section 380(7));

 

  • subsidiary undertakings may be excluded from consolidated financial statements in accordance with applicable accounting standards (section 381(2));

 

  • no requirement to disclose in the notes to financial statements the material interests of directors in transactions, arrangements or contracts of significance (section 23 of Cap. 622G);

 

  • no requirement to disclose or include in the directors’ report-
  •  a business review (section 388(3)(a))
  •  arrangements to enable directors to acquire benefits by the acquisition of shares or debentures
  •  donations
  •  directors’ reasons for resignation or refusal to stand for re-election
  •  material interests of directors in transactions, arrangements or contracts of significance entered into by a specified undertaking of the company 


           (sections 3(3A), 4(3), 8(3) and 10(7) of Companies (Directors’ Report) Regulation, Cap. 622D (“Cap. 622D”)); 

 

  •  no requirement for the auditor to express a “true and fair view” opinion on financial statements (section 406(1)(b)); and

 

  • financial statements may be prepared in compliance with the Small and Medium-Sized Entity Financial Reporting Standard and Financial Reporting Framework issued or specified by HKICPA.



Source: Companies Registry www.cr.gov.hk