A statutory audit is a legally required review of the financial records of a company, ensuring that they comply with local regulations and accurately represent the company's financial standing. In Hong Kong, statutory audits must follow the Hong Kong Standards on Auditing (HKSA), which are aligned with international auditing standards. Understanding the statutory requirements and ensuring compliance is crucial for businesses operating in Hong Kong, whether they're private companies, public entities, or subsidiaries of international corporations. A proper audit ensures transparency, accountability, and trustworthiness in financial reporting, which is essential for both businesses and stakeholders.
Need Help with Statutory Audit or Hong Kong Standards on Auditing?
Toby connects you with experienced and qualified auditors in Hong Kong who specialize in statutory audits, ensuring that your financial records meet the legal requirements of the Hong Kong government and international auditing standards. Whether you need help with preparing for a statutory audit or ensuring compliance with the Hong Kong Standards on Auditing, our platform helps you compare services from top-rated auditors, making it easy to find the right fit for your needs.
Want to Know Statutory Audit Pricing?
The cost of a statutory audit in Hong Kong can vary based on the size of your company, the complexity of your financial statements, and the auditor’s experience. The fees for a statutory audit typically depend on the following factors:
Company size: Larger companies with more complex financial statements often require more detailed auditing, which can increase costs. Scope of the audit: More extensive audits, which require additional work and specialized skills, can be more expensive. Audit firm’s reputation: Well-established audit firms with extensive experience tend to charge higher fees.
The cost of a statutory audit in Hong Kong generally ranges from HKD $10,000 to $50,000, depending on these factors. To receive an accurate quote, submit your request through Toby and receive free estimates from multiple audit professionals.
What Does a Statutory Audit Include?
A statutory audit involves a comprehensive review of a company’s financial records, including its balance sheet, profit and loss account, and cash flow statement. The auditor will examine these documents to ensure that they are accurate, comply with the Hong Kong Financial Reporting Standards (HKFRS), and reflect the true financial position of the company. A statutory audit also includes internal control evaluation: The auditor will assess the company's internal controls to ensure financial data is accurate and reliable. Audit opinion: The auditor will provide an opinion on whether the financial statements present a true and fair view of the company’s financial performance. Compliance check: The auditor will check if the company adheres to all relevant statutory and regulatory requirements, such as tax laws, accounting standards, and corporate governance codes.
Why Choose Toby’s Statutory Audit Experts?
Toby helps you connect with licensed auditors in Hong Kong who are experienced in performing statutory audits and ensuring compliance with Hong Kong’s auditing standards. Our platform allows you to compare different auditors based on their experience, reputation, and pricing, making it easy to choose the right professional for your business needs. Whether you're a small business or a large corporation, Toby helps you find auditors who will provide thorough and reliable audit services, ensuring that your company stays compliant with the statutory requirements.
How Long Does a Statutory Audit Take?
The length of a statutory audit depends on the size and complexity of the company’s financial records. A typical statutory audit for a small or medium-sized company may take 1–2 weeks, while audits for larger companies may take several weeks to complete. The process involves collecting financial data, reviewing internal controls, and ensuring compliance with regulations. The auditor will provide you with a timeline for the audit process, including when the audit report will be finalized.
Why Are Statutory Audits Important?
Statutory audits are essential because they provide an independent, third-party assessment of a company’s financial health and ensure that its financial statements are accurate and in compliance with relevant laws. Statutory audits enhance credibility and transparency, which can help build trust with investors, creditors, and regulatory authorities. Additionally, audits help identify potential financial risks and areas for improvement in internal controls, which can contribute to better decision-making and overall business performance.
How to Ensure Compliance with Hong Kong’s Statutory Requirements?
To comply with Hong Kong’s statutory audit requirements, companies must ensure that their financial statements adhere to the Hong Kong Financial Reporting Standards (HKFRS) and that their audit processes follow the Hong Kong Standards on Auditing (HKSA). Companies must also ensure that their financial records are up-to-date, accurate, and transparent. Regular internal reviews and consultations with experienced auditors can help ensure ongoing compliance and avoid penalties for non-compliance.
Why Hire a Professional Auditor for Your Statutory Audit?
Hiring a professional auditor ensures that your company’s financial records are properly reviewed and compliant with local regulations. Auditors are trained to detect discrepancies, assess internal controls, and provide an unbiased, independent opinion on your financial statements. A professional auditor also brings extensive knowledge of auditing standards, ensuring that your company’s financial statements meet both local and international reporting requirements. By hiring an expert auditor, you ensure that your company’s financial health is accurately represented, and you avoid the risk of legal or regulatory issues.
Types of Statutory Audits – What Are the Differences?
Statutory audits may vary depending on the company’s type and size. The primary types of statutory audits include annual statutory audits: Required for most businesses in Hong Kong, particularly private and public companies. These audits ensure that the financial statements are accurate and comply with the HKFRS. Audit for public companies: In addition to standard auditing requirements, public companies may be subject to more extensive audits due to their larger size and greater regulatory scrutiny. Audit for subsidiaries: A subsidiary company may be required to undergo a statutory audit as part of its parent company's consolidated financial statements. Small company audit exemption: In Hong Kong, small companies may be exempt from a statutory audit if they meet certain criteria, such as having a low revenue threshold.
FAQs
What is a statutory audit?
A statutory audit is a legally required examination of a company’s financial records to ensure that they comply with relevant laws and accurately reflect the company’s financial position.
How often do I need a statutory audit in Hong Kong?
Most businesses in Hong Kong must undergo a statutory audit annually to ensure compliance with the Hong Kong Financial Reporting Standards (HKFRS) and the Hong Kong Standards on Auditing (HKSA).
Ready to ensure your business is compliant with statutory audit requirements? Submit your service request through Toby and get free, no-obligation quotes from top-rated auditors in Hong Kong!