Recently, it is the peak period for corporate auditing in Hong Kong12.31The clients of the date date have also provided the audit materials of the Hong Kong company successively, and started the annual audit work of the Hong Kong company. During the audit of the company in Hong Kong, we also found some problems one after another. Many customers' data is prepared according to the bank statement, such as income invoices and cost invoices. In fact, if the audit of Hong Kong companies is conducted in this way, the trade data of many companies will be inaccurate. Why do you say that?

First of all, the recognition of our revenue must not only depend on whether the bank has received the payment, but also on whether the cost is recognized in the current period like the revenue. If the cost is not recognized in the current period, the revenue cannot be said to be in the current period, because Hong Kong audit should pay attention to the principle of accrual basis, and the revenue and cost must be matched.

Recently, the audit in Hong Kong has encountered many such problems. If the account is entered only according to the bank statement, first of all, the profit of the year audited by Hong Kong will certainly be inaccurate, and some parts of the income and cost will not match. In case the tax bureau asks later, and fails to give a reasonable explanation, and thinks the data provided is suspected of tax evasion, it will be more than worth the loss for the enterprise.

Therefore, when auditing in Hong Kong, the principle of matching revenue and cost should be adhered to to some extent. If the revenue is confirmed in the current period, the relevant cost should be confirmed in the current period.

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