Statutory Audit is a kind of compulsory audit required by law. In accordance with Hong Kong Companies Ordinance, the limited company registered in Hong Kong shall appoint Certified Public Accountants to conduct auditing in each financial year. The auditor shall perform relevant audit procedures on the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and relevant receipts according to the auditing standards. We shall also comment on whether the accounting system formulated by the enterprises comply with the GAAP and its effectiveness in the actual application process.

Guided by the principle of independence, KCPRO’s affiliates provide annual auditor’s reports that meet the auditing standards for the enterprise and provides audit opinions on the authenticity and equity of financial statements and accounting records, as well as the consistency of accounting process. We can provide management proposal in which to list out the existing critical problems, with the improvement plan, references, and suggestions, if required.

Information required for the audit:

• Annual financial statements (including the statement of profit or loss and other comprehensive income, statement of financial position and statement of cash flows)

• The accounting record for the fiscal year (including bank statements, contracts, expense invoices, and receipts, etc.)

• The list of related parties

• Other relevant information

Auditing procedures:

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  1. Draft the audit plans for ensuring relevant audit objectives

  2. Understand and comment on the internal controlling system of the enterprise.

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  3. Compliance testing and comment on the result

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  4. Substantive control and comment on the result

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  5. Prepare audited financial statements and forward to the companies being audited