【Dry goods】Importance of audit of Hong Kong companies Four different kinds of audit opinions in deta
After the establishment of a Hong Kong company, according to the Hong Kong Companies Act, the Hong Kong company audit report should be provided as soon as possible after the company has been established for 18 months and upon receipt of the profits tax return issued by the Inland Revenue Department.
According to Hong Kong company law, there is bank water that is a company in business, you must do the audit.
1.Legal Requirements According to the Hong Kong Companies Ordinance, the annual financial statements of all limited companies registered in Hong Kong are required to be audited by a firm of certified public accountants in order to enable the shareholders of the company to understand the financial position of the company.
2.The investors of a monitoring operation limited company are the shareholders, while the managers are the directors. Shareholders, having regard to their own interests, will inevitably want to know about the company's operations. However, the company cannot disclose important and sensitive financial data of its internal operation without restriction or give shareholders the right to review the company's detailed accounts. Therefore, the company needs an independent third-party professional to audit the company's accounts to ensure that the financial reports presented to the shareholders are truthful and reliable, so that the shareholders can have a better understanding of the company's operating conditions.
3.It should be noted that Hong Kong company audits must be conducted by qualified third-party independent auditors (qualification refers to professional accountants recognized by the Hong Kong Institute of Certified Public Accountants, usually referred to as Hong Kong licensed certified public accountants), and the audit reports issued can be applied to a variety of occasions, such as tax reporting, updating of bank information, bidding and so on.
1.Compliance tax declaration required Hong Kong companies to the Inland Revenue Department to declare the company's tax, the annual audit report needs to be submitted to the Inland Revenue Department, so that the Inland Revenue Department of the company for the assessment of tax.
2.Maintenance of bank accounts banks in order to control risks will from time to time randomly check the company's bank accounts, will check the audit report of the specified year, if you can not provide, it will affect the normal use of the account, serious or even freeze or cancel the account.
3.Listed financing investment proof of the company, whether it is financing, listing or overseas investment, the audit report is an indispensable document.
4.General meeting of shareholders required by the Hong Kong Companies Ordinance, the Hong Kong company must also be in the annual general meeting of shareholders, to all shareholders of the company to meet the requirements of the audit report issued.
5.Company Cancellation According to the Hong Kong Companies Ordinance, for Hong Kong companies that have been operating for more than 1 year and have made profits, the previous year's audit report must be submitted at the time of cancellation.
1.Unqualified Audit Report
It refers to the examination of the accounting statements of a Hong Kong company by a licensed accountant in Hong Kong in accordance with the requirements of independent auditing standards, and confirms that the accounting treatment adopted by the Hong Kong company has complied with accounting standards and relevant regulations. The accounting statements reflect the actual situation of the audited entity. We are therefore unqualifiedly satisfied with the accounting statements of the Hong Kong company.
2.Qualified Audit Report
This refers to a report issued by a licensed accountant in Hong Kong that expresses a qualified opinion on the accounting statements of a Hong Kong company. A "qualification" is a reflection of the extent to which certain matters may have been reflected in the accounting statements. Therefore, a "qualified opinion" is essentially a discount on the truthfulness of the accounting statements prepared by a Hong Kong licensed accountant.
3.Adverse Audit Report
It refers to the audit opinion issued by a licensed accountant in Hong Kong that the accounting statements of a Hong Kong company do not present fairly its financial position, results of operations and cash flows after the audit, and thus expresses an adverse opinion on the accounting statements of the Hong Kong company.
4.Disclaimer of Opinion
It refers to the report issued by a Hong Kong licensed accountant in the course of an audit, due to the failure to collect sufficient accounting data to express an accurate audit opinion on the accounting statements of a Hong Kong company, the report issued by a "disclaimer of opinion", the result of this audit report is different from the refusal to accept the commission, indicating that they are not willing to make a statement as to whether the accounting statements reflect the actual situation of the Hong Kong company, and the report will be issued by a licensed accountant. The result of such an audit report is different from a refusal to accept an engagement to express an opinion on whether the accounting statements reflect the actual position of the Hong Kong company.
1.Influence on company operation: If the company is found to have failed to do an audit, the bank will take the initiative to close the account and freeze the balance of the bank account as well as other assets of the company in Hong Kong;
2.Mandatory closure of accounts: being sampled to the Hong Kong bank account did not do the audit, the bank will take the initiative to force the closure of the account, freezing the bank account balance and other assets of the company in Hong Kong, the Inland Revenue Department will automatically assess the tax and mandatory deduction, but also need to pay additional fines;
3.Damage to the credibility of the director: when the customer knows that your company has been fined, causing the cooperation of the customer's concern, the director's own credit will also be greatly adversely affected;
4.Fines and Penalties: The amount of fines for Hong Kong companies that have not been audited will accrue over time, and the fines for those that have not been audited will accrue over time, and the ultimate penalty will be being taken to court and restrictions on entering and leaving Hong Kong.
1.Bank account has left business records
2.Import and export records from government customs and logistics companies.
3.Employing staff in Hong Kong
4.Permit or authorize the use of patents, trademarks, designs and other information in Hong Kong
5.Permit or authorize the use of movable property in Hong Kong to authorize rent, lease payments, etc.
6.Purchase and sale of goods from or to customers in Hong Kong.
7.the existence of profits derived or arising in Hong Kong
8.Entrusting business to be transacted in Hong Kong
Q:
Hong Kong company has been zero declaration, now start to pay tax, need to make up the previous audit, from when to do?
A:We need to make up for the previous audits, from the year of establishment of the Hong Kong company to make up for all the accounts of the accounting year, the accountant can issue a more quality audit report only according to the financial materials and other vouchers, or else we can't issue an audit report.
Q:
Can I directly cancel my Hong Kong company and register a new one if I have zero declaration before?
A:Direct cancellation of Hong Kong company does not solve the substantive problems, Hong Kong company cancellation, the relevant account information and bank water will be retained, the Hong Kong Inland Revenue Department in 7 years have the right to check all the accounts of the Hong Kong company.
Q:
What will be the problem if the bank account of Hong Kong company has not been used and declared after it has been opened?
A:Hong Kong company bank account has not been used will be frozen or enter the long suspended (dormant) state, it can not be used, such as the need to re-use, need to activate or re-open the account. The company does not operate and no other purposes, it is recommended to cancel as soon as possible, otherwise a long time without annual audit will produce serious fines, know that the name of the company will be removed from the state will enter the blacklist, the customer will have an impact on the subsequent entry into Hong Kong or go to Hong Kong to invest.
