Many domestic enterprises have set up subsidiaries in Hong Kong. Hong Kong companies have to entrust Hong Kong accountants to audit and declare tax in accordance with Hong Kong accounting standards every year, which is the legal obligation of every Hong Kong company. At the same time, when a domestic parent company entrusts a domestic accounting firm to audit, it often audits the accounts of its Hong Kong subsidiary together in accordance with the domestic accounting standards, so that they can be used in China, which is equivalent to the Hong Kong company conducting two separate audits under different accounting standards.

As for verification in auditing, it is an essential procedure in auditing, no matter in accordance with domestic standards or Hong Kong standards, including bank verification of bank account balance and bank bills, as well as confirmation of current payments. Then the question arises: Domestic accountants have already conducted confirmation on the relevant projects of the Hong Kong company. When Hong Kong accountants do the audit, can they not do confirmation but use the confirmation letter done by domestic accountants? The answer is: No. Every certified public accounting firm in Hong Kong and every certified public accountant in Hong Kong must accept the management of the Hong Kong Institute of Certified Public Accountants. The Hong Kong Institute of Certified Public Accountants will carry out random checks on the audit reports made by accountants every year. The requirements are very strict. According to the issue of audit report, will incur the penalty of the association of accountants, serious circumstances, even lead to the suspension of the audit qualification.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.