Statutory Audit and Special Audit 

The main purpose of audit is to express an opinion to a company’s financial statements whether if they are fairly stated or not. An audit involves testing of financial transactions, evaluating internal accounting controls, and confirming account balances with third parties. Generally, we perform audits not just because they are required to be filed to the Inland Revenue Department together with the Tax Return  for tax filing purpose, but statutory audit is indeed mandatory for all incorporated businesses under the provisions of Section 122 of the Hong Kong Companies Ordinance. Besides, audited financial statements are also required by third-party lenders while evaluating loan applications, shareholders of the company while making investment decisions, and/or bylaws of the company or organization