How Does the Hong Kong Audit Process Work?

The audit process is a straightforward collaboration. Here is how it typically works:

1. Preparation: The company prepares financial statements and gathers all supporting documents.
2. Review: A CPA (Certified Public Accountant) reviews the statements and materials for accuracy and compliance.
3. Audit Opinion: The auditor forms an opinion on whether the statements fairly reflect the company’s financial position.
4. Reporting: An audit report is prepared based on the assessment.
5. Signing: Directors review and sign the audit report and associated documents.
6. Submission: The signed audit report, Profits Tax Return, and tax computation are submitted to the Inland Revenue Department (IRD).
7. Assessment: The IRD reviews the submission and may issue a tax assessment if assessable profits are found.

Note: The IRD only accepts original, wet signed hard copies of the audit report.