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What is Statutory Audit?

Statutory Audit is one type of compulsory auditing as mandated by Hong Kong’s Law and it is one of the on-going compliance requirements for Hong Kong companies. Every Hong Kong-incorporated company must appoint qualified and independent auditors to perform yearly statutory audits on their accounts.

Who can perform the Audit?

The auditor must be a Certificated Public Accountant (“CPA”) qualified under the Professional Accountants Ordinance and must hold a Practicing Certificate issued by the Hong Kong Institutes of Certified Public Accountants (“HKICPA”).
Note: The HKICPA is the sole licensed entity that is able to register and certify public accountants in Hong Kong.

Process of Auditing.

  • Draft the auditing plans
  • Understand and make remarks/suggestions on the internal controlling system of the company,
  • Assemble and record relevant information
  • Compliance testing
  • Substantive control
  • Draft the auditing report and forward to the company (that has been audited)

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