Statutory Audit
Statutory audits are mandatory audits required by law, such as the annual audits conducted by registered accountants for foreign-invested enterprises or listed companies. In Hong Kong, the Companies Ordinance stipulates that limited companies established in the region must appoint a practicing accountant in Hong Kong to conduct an audit of their accounts each year. Auditors will review the income statement, balance sheet, and related documents according to auditing standards, and assess whether the accounting system established by the enterprise complies with generally accepted accounting principles and the effectiveness of those principles in practical application.
The audit team at First Group provides statutory audit reports that comply with auditing standards, based on the principle of independence. We express audit opinions on the authenticity, fairness, and consistency of the company's financial statements and accounting records. When necessary, we will issue management letters to report significant issues to the client's management, propose improvement plans, and offer recommendations for enhancing governance standards.
Information Needed for Auditing
Audit the annual financial statements (including the income statement, balance sheet and cash flow statement)
The accounting record in the fiscal year (including bank statements, contracts, expense invoices and receipts, etc.)
The list of affiliated company and affiliated persons
Other relevant information
Process of Auditing
Draft the auditing plans to ensure the auditing targets
Understand and comment on the internal controlling system of enterprise
Gather and record or copy relevant information
Compliance testing and comment on the result
Substantive control and comment on the result
Draft auditing report and forward to the company being audited
Audit Process and Timeline
| Process | Timeline | Content |
| Planning | 1-2 Weeks | During the initial review of a client's financial information and original records, auditors must assess the client's internal control system, identify audit risks, develop a comprehensive audit strategy, and plan the details of the audit procedures. |
| Testing | 2-3 Weeks | Auditors collect various relevant documents and meticulously verify their accuracy, reasonableness, and completeness. In addition to the information provided by the client, they also obtain data from other third-party sources to maintain and enhance the independence of the audit process. |
| Analysis and Opinion | 3-6 Weeks | After resolving all significant issues and receiving all confirmation letters, representations, reviewing the audit procedures and ensuring the completeness and reasonableness of records, auditors submit the draft audit report to the client at the appropriate time. |
| Completion and Follow-Up | 1-2 Weeks | Upon receiving approval and signature from the client for the financial statements, auditors conduct a final review to ensure accuracy. They then issue the official auditor's report, concluding the audit work. Subsequently, all working papers and relevant documents are comprehensively archived for record. |
Why Choose First Group?
- Professional and Efficient：With years of experience and familiarity with regulations in various regions, we ensure smooth business processes.
- One-Stop Service：Whether it's company formation, tax consulting, accounting services, or auditing, we handle everything for you, saving you time and effort.
- Customized Solutions：Whether you are a startup or expanding your business, we can tailor solutions to meet your needs.
Contact us now for a free consultation and the latest pricing information! Just prepare the basic information, and First Group will simplify the cumbersome procedures, allowing you to focus on realizing your business blueprint. Start today, succeed tomorrow!
