What is an auditor's report under Hong Kong company law

The Auditor's Report in Hong Kong

The Companies Ordinance (Cap. 622) sets the auditor's report Hong Kong requirements. Every Hong Kong incorporated company must have its financial statements audited annually by a practising certified public accountant registered with the HKICPA. This report is the formal opinion on those financial statements, addressed to the members and presented alongside the directors' report. Only a registered practice unit whose holder holds a practising certificate may sign a Hong Kong statutory audit report.

Statutory Audit Report Hong Kong

The statutory audit report Hong Kong is the document filed with the Companies Registry as part of the company's annual return cycle. Directors must lay the audited financial statements before the members, or send them to members where the annual general meeting is dispensed with. The report confirms whether the financial statements give a true and fair view in accordance with the applicable financial reporting framework.

Auditor's Opinion Hong Kong

The auditor's opinion Hong Kong may be unmodified (a clean opinion) or modified. A modified opinion arises where the auditor finds a material misstatement or is unable to obtain sufficient evidence. The types of modified opinion are qualified, adverse or disclaimer. This opinion is the single most important sentence in the report for users of the financial statements.

HKICPA Audit Report

An HKICPA audit report follows the standards issued by the Hong Kong Institute of Certified Public Accountants. The HKICPA sets the auditing standards, ethical requirements and quality control procedures that the certified public accountant must apply. The report includes the auditor's opinion, the basis for that opinion, and any key audit matters identified during the engagement.

Audited Financial Statements Hong Kong

The audited financial statements Hong Kong comprise the profit and loss account, balance sheet, notes and any supporting schedules. The auditor's report attaches to these statements and is filed with the Companies Registry as part of the annual return. The audit requirement does not apply to a company that has declared itself dormant under the Companies Ordinance, provided it has no significant accounting transactions.

Going Concern Assessment

The auditor evaluates whether the company is a going concern. If the financial statements are prepared on a going concern basis but the auditor identifies material uncertainty, the report must include an emphasis of matter paragraph drawing attention to the disclosure in the financial statements.

Vocabulary Used Throughout

HKICPA, practice unit, practising certificate, certified public accountant, statutory audit, financial statements, directors' report, members, Companies Registry, Cap. 622, audit requirement, going concern, modified opinion, laying financial statements.