Statutory Annual Audit

Statutory annual audit for Hong Kong limited company
Every company which is incorporated under Companies Ordinance of Hong Kong, the company’s director(s) must, in respect of each financial year, lay before the company in annual general meeting, audited financial statements for the financial year. (Hong Kong Law, Cap622, Hong Kong Companies Ordinance, section 429(1))

Hong Kong does not have a specific year ended date stipulated by the law. Clients may choose their own year ended date as they wish. However, most of the clients would like to make their year ended date as 31st December or 31st March. It’s because Hong Kong government’s financial year ended date fall into 31st March in each year, therefore, if you company does not have any other considerations such as matching with group companies’ year ended date, then choosing 31st March is a popular choice. A director of a company who willfully fails to take all reasonable steps to secure compliance with subsection (1) commits an offence and is liable to a fine of $300,000 and to imprisonment for 12 months. (Hong Kong Law, Cap622, Hong Kong Companies Ordinance, section 429(4))

Such audit report must be signed by a Hong Kong Certified Public Accountant who possess a valid practicing certificate issued by Hong Kong Institutes of Certified Public Accountant. The first audit report shall be presented to the shareholders in Annual General Meeting within 18 months after incorporation.
(Hong Kong Law, Cap622, Hong Kong Companies Ordinance, section 405)

Licensed corporation audit

Any company which providing services falling in the scope in securities and futures markets, will be regulated by There are ten types of services including those most popular four in Hong Kong. Dealing in securities; Advising on securities; Advising on corporate and Asset management. Such kind of companies must obtain a license and be monitored by the Securities and Futures Commission (“SFC”). https://www.sfc.hk/en/

Licensed corporations are required to submit their audited accounts and other required documents within four months after the end of each financial year (section 156(1) of the SFO)

A corporation licensed with the Securities and Futures Commission (SFC) which adopted 31 December as its financial year-end date will need to submit its financial statements and business and risk management questionnaire (BRMQ) for the period from 1 January to 31 December annually.

Cayman Islands Company audit

In the Cayman Islands only companies that are regulated by the Cayman Islands Monetary Authority (CIMA) are required to prepare, publish, and file financial statements. CIMA-regulated companies are those which are established under the Banks and Trust Companies Law, the Insurance Law, Mutual Funds Law, Securities Investment Business Law, and the Companies Management Law. These laws refer to generally accepted accounting principles without specifying accounting standards to be applied. In practice, however, the standards applied depends on the client due to the international nature of business in the Cayman Islands and the majority of financial statements are prepared under U.S. GAAP or IFRS.

Other Cayman Island entities which have been established under the Companies Law (2016 Revision) are required to keep proper books of accounts but do not need to publish or file financial statements as they are not subject to oversight by CIMA or any other government body. Cayman Island entities which have been established under the Companies Law are not subject to annual audit

Regulations prescribe that the audit must be conducted in accordance with ISA, US GAAS or a standard assessed as equivalent with those by the CIIPA or the IAASB and in practice, the overwhelming majority of audits are conducted using US GAAS or ISA
https://www.ifac.org/about-ifac/membership/country/cayman-islands (assessed on 27 April 2022)

Technology Voucher Programme (TVP) funding audit
Launched in November 2016, TVP aims to support local enterprises/organisations in using technological services and solutions to improve productivity, or upgrade or transform their business processes. Cumulative funding ceiling per company is HK$600,000 and Up to 6 projects per company. Our company is one of the approved auditor

https://www.itf.gov.hk/en/funding-programmes/facilitating-technology/tvp/ https://www.itf.gov.hk/filemanager/en/content_38/TVP_Audit_Service_Providers_20211221.pdf

Distance Business Programme (D-Biz Programme) funding audit

Remote working or service has become a new trend against the backdrop of the epidemic. Under the Anti-Epidemic Fund, the Innovation and Technology Commission (ITC) has launched the Distance Business (D-Biz) Programme to support enterprises to adopt IT solutions to continue their business and services during the epidemic. For each IT solution and the relevant training expenses for the employees, the funding ceiling is HK$100,000 (with funding for the relevant training expenses capped at 10 per cent of the IT solution cost). Each enterprise may receive total funding of up to HK$300,000 to undertake a project to be implemented within six months.

An enterprise will be disbursed a payment of 30% of the funding amount after the application has been approved. Upon completion of the project and after the supporting documents are accepted, the remaining funding amount will be disbursed to the enterprise. Pursuant to the Guidance Notes for Funding Applications of the D-Biz Programme (“Application Guide”), Recipient Organisations (ROs) are required to submit an audited statement of expenditure for the D-Biz Programme projects to the Secretariat (i.e. Hong Kong Productivity Council) according to a stipulated timeframe.

Notes for Auditors of Recipient Organisations
https://www.hkpc.org/sites/default/files/2020-05/notes_auditors_org_en.pdf

Other assurance services

Dedicated Fund on Branding, Upgrading and Domestics Sales” (the BUD Fund) funding audit
(https://www.smefund.tid.gov.hk/english/tsf/tsf_objective.html)

Technology Startup Support Scheme for Universities funding audit (TSSSU)
(https://www.versitech.hku.hk/public/tsssu/index.html)

Tel + 852 3707 3150

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Email: info@gv-cpa.com

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