Ms. Chen Hong (pseudonym) is a foreign trader who has been engaged in foreign trade for many years. At the beginning of February, 223, Ms. Chen found Yang Zong, the general manager of Hongkong Credit Enterprise, through a friend's introduction, and asked many detailed questions about the audit of Hong Kong companies and the opening of accounts in local banks in Hong Kong. Although Yang Zong, a Hong Kong-based letter company, answered them one by one, he could not help wondering why he asked so many detailed questions if he was a regular Hong Kong company. After further understanding by Yang Zong, I realized the ins and outs of the matter.
1. The bank account was closed because the audit was not done: Ms. Chen registered a Hong Kong company in 218 after learning about the convenience of foreign trade business of Hong Kong companies from friends, and opened a local Standard Chartered Bank account in Hong Kong in the name of this company. In order to keep the profit as much as possible, Ms. Chen transferred all the business money she received on the same day, and every year, she made a "zero declaration" in the tax return of Hong Kong companies, not to mention the audit of Hong Kong companies. Even when local banks in Hong Kong conducted due diligence with Ms. Chen, they did not provide the audit report of the Hong Kong company. Just at the end of January 223, Mr. Pu received a notice letter from the local Standard Chartered Bank in Hong Kong, "No longer providing services for Ms. Chen". Ms. Chen contacted the bank in a hurry, but she didn't get a clear answer. She just said that due to administrative reasons, she couldn't continue to provide banking-related services for Ms. Chen. Ms. Chen asked the former secretary company, and the other party couldn't give an answer. Instead, she thought that it was Ms. Chen's improper use, which led to the closure of local bank accounts in Hong Kong. Helpless, Ms. Chen can only ask for help from the outside world.
Knowing this, Yang Zong, a Hong Kong-based company, probably guessed the reason why Ms. Chen's Hong Kong company's bank account was closed, and explained to Ms. Chen that local banks in Hong Kong must conduct a comprehensive due diligence on each registered bank account holder out of the responsibility of examining customers to ensure that the customers are engaged in legitimate business and are not involved in any illegal business activities. However, Ms. Chen failed to provide convincing audit reports of Hong Kong companies during due diligence, and the bad habit of using local bank accounts in Hong Kong led local banks in Hong Kong to think that Ms. Chen was too risky and decided to close Ms. Chen's bank account of Hong Kong companies. Only then did Ms. Chen realize that the audit report of Hong Kong companies is not an unnecessary expense, but an essential maintenance expense for the operation of Hong Kong companies.
2. Solution: As the closure of Ms. Chen's local bank account in Hong Kong is irreversible, and the Hong Kong company under Ms. Chen's name has not been audited for many years, Tonghui Certified Public Accountants suggested that Ms. Chen cancel this Hong Kong company, re-apply for registration of another Hong Kong company and re-apply for a local bank account in Hong Kong in the name of the new company. However, Ms. Chen saw the nature of Hongkong Credit from the answers of Hongkong Credit Enterprise, approved Yang Zong's suggestion, re-registered the Hong Kong company through Hongkong Credit Enterprise, and successfully applied for a new local bank account in Hong Kong. After this incident, Ms. Chen also realized the important role of audit reports of Hong Kong companies, and entrusted Hongkong Credit Company as a secretary company to be responsible for the annual review and audit of Hong Kong companies.
3. To sum up, from the above cases, we can see that the audit of Hong Kong companies is not optional. If we don't do the audit of Hong Kong companies, there will be endless troubles!
from the above cases, we know the importance of auditing, so what are the relevant regulations and processes of corporate auditing in hong kong?
1. Provisions: According to the Regulations on the Administration of Hong Kong Companies, every Hong Kong company must conduct an audit as long as it starts to operate or its bank account has liquidity. According to the management regulations of Hong Kong companies, the purpose of audit of Hong Kong companies is to disclose the operation, capital use, profit and asset allocation of the previous year to all shareholders, so as to ensure that each shareholder can master the operation of the company.
2. Audit institutions: The audit of Hong Kong companies must be conducted by qualified third-party independent audit institutions (qualifications refer to accountants recognized by the Hong Kong Institute of Accountants, usually called Hong Kong Certified Accountants), and its accuracy and fairness are greatly guaranteed, so it has also become a good financial certification material for Hong Kong companies. In many applications, audit reports can be used as financial documents (such as tax declaration, bank information update, bidding, raising funds and loans, etc.).
III. Audit Steps of Hong Kong Companies
1. Organize the transaction records, documents (receipts and contracts) and bank statements of Hong Kong companies: Every Hong Kong company will produce a series of documents in the course of its operation. According to these documents, we need to organize them into information that auditors can review and use.
2. Accounting statements: The audit of Hong Kong companies needs standardized accounting statements and is based on them. Accounting statements required for the audit of Hong Kong companies usually include: general ledger, subsidiary ledger, vouchers (as the case may be), balance sheet, profit and loss statement, cash flow statement, trial balance statement, etc.
3. Entrusting auditors to audit: The Hong Kong Institute of Certified Public Accountants stipulates that Hong Kong auditors (called auditors in Hong Kong) need to obtain special licenses and professional qualification certificates. The time required for the audit of Hong Kong companies usually depends on the company's complex financial situation and the integrity of documents. Generally, a simple legal audit takes about 2 months.
IV. Auditing Regulations of Hong Kong Companies
All limited companies registered in Hong Kong must report their financial statements on a statutory auditing basis once a year in accordance with the company regulations. Hong Kong, accountants, accounting companies, accounting firms and other non-certified public accountants or non-certified public accounting firms are not allowed to audit the company. Only Hong Kong certified public accountants are qualified to conduct statutory audits and sign statutory audit reports.
v. p>1.B.R photocopy of the audit information of the Hong Kong company (business registration certificate);
2. Recent annual report;
3. Bank statement;
4. tax returns;
5. receipts and payments (including one month after the last fiscal year and one month of the next);
6. A copy of the purchase and sale contract;
7. Invoice documents;
8. Booklet (i.e. Articles of Association);
9. Recent auditor's report;
1. Lease, etc.
VI. Consequences of Non-audit
There are two tax return methods for ordinary companies in Hong Kong, namely, inactive report and accounting audit. So what are the consequences of non-audit of Hong Kong companies?
1. The business of the company will be affected:
Information about unpaid audits will be fed back on the search website of the Hong Kong Registry;
2. The company's bank account is closed, and the deduction is forced:
Once the bank finds that your Hong Kong company has not audited or is unwilling to audit, the bank account may be frozen, and after the implementation of CRS, the bank will examine the company more strictly!
3. Problems affecting the company's external reputation:
When the outside world knows that your enterprise has not passed the annual review, the external trust accumulated over the years may also be destroyed.
4. The tax bureau imposes a high fine, and in severe cases, the directors will be investigated for punishment:
The amount of fines for Hong Kong companies that have not audited will accumulate over time, and the fines for those who have not audited will accumulate over time, and the final punishment will be that the defendant goes to court and is restricted from entering and leaving Hong Kong.
that's the summary of the dry goods audited by Hong Kong companies. I hope you like wenmin557.