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Advantages of Annual Statutory Audit

• Posted by Global Vision March 26, 2023 Filed in Business #Annual Statutory Audit  148 views
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  A type of mandatory auditing known as a statutory audit is one that is mandated by law, such as the annual audits that Chinese Certified Public Accountants perform for foreign investment firms or publicly traded companies. Also, in accordance with the "Companies Ordinance" of Hong Kong, every year, limited companies registered in Hong Kong must appoint Certified Public Accountants to undertake audits. According to the auditing rules, the auditor must do an audit on the balance sheet, the profit and loss statement, and any pertinent receipts. They must also remark on the efficacy of the accounting system developed by the company P during the actual application procedure.

  Following the idea of independence, our audit team produces Annual statutory audit that adhere to the enterprise's auditing standards and offers audit views on the veracity and equity of financial statements and accounting records, as well as the consistency of the accounting process. If necessary, we can offer management proposals that outline the current, serious issues and include a solution plan, references, and recommendations.

  Information required for an audit

  • Examination of the annual financial accounts including the income statement, balance sheet, and cash flow statement
  • The year's financial accounting records including bank statements, contracts, expense invoices and receipts, etc.
  • The list of linked businesses and people
  • The auditing procedure
  • Create the auditing plans to ensure that the auditing objectives are met.
  • Recognize and comment on the enterprise's internal control system.
  • collect, note, or copy pertinent information
  • Compliance testing, with analysis of the results
  • Control of substance and evaluation of the outcome
  • Provide the company being audited a draught of the audit report.

  Financial statements are reports that aid in understanding and assessing the state and health of a company's finances over a specified time period. It is divided into three parts:

  • The company's capital, liabilities, and assets are displayed on the balance sheet for a given time period.
  • Income statement: It lists the company's gains, losses, costs, and profits.

  The company's financial position is represented by the cash flow statement.