Statutory Audit Hong Kong | External Audit Services for HK Companies | Deep Blue CPA

At Deep Blue CPA Limited, we deliver professional external audit services in Hong Kong for startups, SMEs, and multinational corporations. Our team of AFRC registered certified public accountants (practising) conducts statutory audits, group audits, and assurance engagements in accordance with Hong Kong Standards on Auditing (HKSAs). We ensure your financial statements present a true and fair view and comply fully with the Hong Kong Companies Ordinance (Cap. 622), the Professional Accountants Ordinance (Cap. 122), and Hong Kong Financial Reporting Standards (HKFRS).

Since 2008, we have helped hundreds of businesses across diverse industries meet their audit obligations with accuracy, transparency, and efficiency. Our ex-Big Four experience means you receive the same rigorous standards applied by the largest global firms, delivered with the personalised attention of a boutique practice. From bookkeeping through to tax filing, we support your full compliance cycle.

Industries We Serve

Our audit team has extensive experience across a broad range of industries in Hong Kong, giving us the sector-specific knowledge to identify risks and tailor our audit approach:

• Trading and Distribution — Wholesale, retail, import/export, and supply chain companies with complex inventory and revenue recognition.
• Manufacturing — Production facilities with fixed asset intensive operations, cost accounting, and cross-border transactions.
• Technology and IT Services — Software, SaaS, fintech, and e-commerce businesses with intangible assets and deferred revenue.
• Professional Services — Law firms, consultancies, architects, and engineering practices requiring fee-income verification.
• Property and Construction — Real estate developers, property investment holding companies, and construction contractors.
• Non-Profit and NGOs — Charitable institutions, schools, and associations requiring fund-based accounting and restricted fund audits.
• Financial Services — Licensed corporations, money service operators, and investment holding entities.

Our External Audit and Assurance Services

We offer a comprehensive range of audit and assurance services designed to meet the needs of Hong Kong companies, from statutory compliance to specialised assurance engagements:

Statutory Audit of Financial Statements

Our core service — conducting independent audits of financial statements in accordance with the Hong Kong Companies Ordinance (Cap. 622) and Hong Kong Standards on Auditing (HKSA). We examine your financial records, assess internal controls, and issue an independent auditor's report expressing our opinion on whether the financial statements present a true and fair view. For companies with subsidiaries, we also provide internal control reviews to strengthen group-wide governance.

Multinational Group Audit

We act as group auditor for multinational corporate structures, coordinating audit procedures across multiple jurisdictions. Our team liaises with component auditors overseas, reviews their work, assesses group consolidation processes, and issues a group audit opinion on consolidated financial statements.

Special Purpose Audit

For financial information prepared under specific regulatory, contractual, or special reporting frameworks — including grant utilisation audits, agreed-upon procedures, and audits of specific financial statement elements such as revenue, expenses, or asset valuations.

Audit of Internal Control Over Financial Reporting (ICFR)

We evaluate the design and operating effectiveness of your internal control framework, testing key control activities and identifying material weaknesses or significant deficiencies that could affect financial reporting accuracy.

Review Engagements and Interim Reporting

For companies requiring limited assurance on interim financial information, we perform independent reviews in accordance with Hong Kong Standards on Review Engagements (HKSRE), supporting interim reporting to shareholders, lenders, or investors.

Why Your Company Needs a Statutory Audit in Hong Kong

Under the Hong Kong Companies Ordinance (Cap. 622, Sections 406–408), all limited companies are required to have their financial statements audited annually by a practising certified public accountant registered under the Professional Accountants Ordinance (Cap. 122). This legal requirement applies regardless of company size or turnover, unless the company has obtained dormant status from the Companies Registry.

Important: Since April 2023, the Inland Revenue Department (IRD) requires all companies — including small companies with gross income under HK$2 million — to submit audited financial statements with their Profits Tax Return. The previous exemption for small companies has been removed. If your company has not been filing audited accounts, you should regularise your compliance status as soon as possible to avoid penalties.

Beyond legal compliance, a statutory audit delivers significant benefits:

• Investor confidence — An independent audit opinion assures shareholders, investors, and financiers that your financial records present a true and fair view of your company's position.
• Regulatory compliance — Satisfy the Inland Revenue Department (IRD) and Companies Registry requirements with properly audited financial statements.
• Operational insights — Our auditors identify control weaknesses and process improvements during the audit, adding value beyond the statutory requirement.
• Stakeholder trust — Suppliers, customers, and business partners gain confidence dealing with an audited company.

The Hong Kong Audit Process

We follow a structured, transparent audit process designed to minimise disruption to your business while delivering a thorough examination of your financial records.

1. Planning and risk assessment — We understand your business, industry, and internal controls to design an audit approach tailored to your specific risk profile.
2. Document collection — We provide a clear checklist of required documents including financial statements, general ledger, trial balance, bank statements, and supporting schedules.
3. Fieldwork and testing — Our audit team examines your financial records, tests internal controls, performs substantive procedures, and seeks third-party confirmations as needed.
4. Review and evaluation — Engagement partners review findings, assess the sufficiency of audit evidence, and evaluate the impact of any identified misstatements.
5. Audit opinion and report — We issue an Independent Auditor's Report expressing our opinion on whether the financial statements present a true and fair view in accordance with HKFRS.

Most audits are completed within 4 to 8 weeks once all required documents are received. We provide a clear timeline at the outset so your team knows what to expect. For a detailed breakdown of what we examine, see our internal control review services.

Documents Required for Your Audit

To ensure a smooth and efficient audit process, please prepare the following documents:

• Financial statements — Draft or finalised statements including balance sheet, income statement, cash flow statement, and supporting notes.
• General ledger and trial balance — Detailed records of all transactions and the trial balance for the financial year under review.
• Bank statements and reconciliations — Copies of all bank statements for the year along with bank reconciliation reports.
• Sales and purchase ledgers — Aged listings of trade debtors and creditors.
• Fixed asset register — Schedule of fixed assets, depreciation calculations, and additions/disposals.
• Tax computation and returns — Prior year tax assessments and correspondence with the IRD.
• Board minutes and resolutions — Key decisions affecting the financial position during the year.

HKFRS Compliance and Financial Reporting

Our audits are conducted in accordance with Hong Kong Standards on Auditing (HKSAs) issued by the HKICPA. We assess whether your financial statements comply with Hong Kong Financial Reporting Standards (HKFRS) and the disclosure requirements of the Companies Ordinance (Cap. 622, Schedule 4), ensuring they present a true and fair view of your company's financial position, performance, and cash flows.

The outcome of our audit is presented in an Independent Auditor's Report, which provides assurance to shareholders, regulators, and business partners that your financial statements are reliable, accurate, and transparent.

For companies qualifying as small private companies under the Companies Ordinance, we can apply the SME Financial Reporting Standard (SME-FRS) framework, which offers reduced disclosure requirements and simplified reporting while maintaining full statutory compliance. A company qualifies as a small private company if it meets at least two of the following criteria:

• Annual revenue of HK$100 million or less
• Total assets of HK$100 million or less
• 100 employees or fewer

Specialised Government Fund Audits

In addition to standard statutory audits, we specialise in auditing financial statements for government-funded programs and initiatives. Our team has extensive experience verifying the proper use of funds and compliance with funding agreements — see our dedicated HK Government Grants Audit page for full details. Schemes we commonly audit include:

• Environment and Conservation Fund (ECF)
• Innovation and Technology Fund (ITF)
• Quality Education Fund (QEF)
• Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
• Other government grant schemes and subsidy programs

Deep Blue Audit CPA strictly follows the HKICPA Code of Ethics for Professional Accountants, maintaining independence, integrity, and full compliance with ethical standards in every audit engagement. We are committed to objectivity and professional scepticism throughout the audit process.

Why Choose Deep Blue CPA for Your External Audit?

• AFRC registered — We hold a valid practising certificate issued by the Accounting and Financial Reporting Council (AFRC), Registration No. M0307. Verify on AFRC register →
• Ex-Big Four expertise — Our directors bring years of experience from leading global accounting firms, ensuring international best practices.
• Industry diversity — We have audited companies across trading, manufacturing, technology, professional services, property, and non-profit sectors, including schools and educational institutions.
• Transparent pricing — No hidden fees. We provide a clear fee quotation based on transaction volume, complexity, and business structure before engagement.
• Personalised service — Your engagement is managed directly by experienced partners, not junior staff. We are accessible throughout the year.

Frequently Asked Questions

Is my company required to have an audit in Hong Kong?

Yes, all Hong Kong incorporated limited companies must have their financial statements audited annually unless the company has successfully applied for dormant status with the Companies Registry. Sole proprietorships and partnerships are generally exempt, unless their governing documents require an audit.

Do small companies need an audit after April 2023?

Yes. Since April 2023, the Inland Revenue Department (IRD) requires all companies — including small companies with gross income under HK$2 million — to submit audited financial statements with their Profits Tax Return. The previous exemption for small companies under the simplified reporting framework has been removed. If your small company has not yet complied, we recommend regularising your audit status promptly.

Can a dormant company be exempt from audit?

Yes, if a company has been dormant since incorporation or has passed a special resolution to become dormant, it may be exempt from audit requirements under the Companies Ordinance. A dormant company must not have any significant accounting transactions during the period. However, dormant companies must still file annual returns with the Companies Registry.

What are the penalties for late audit submission?

Failure to comply with audit requirements under the Hong Kong Companies Ordinance (Cap. 622) can result in significant penalties. The Companies Registry imposes late filing penalties starting at HK$870 and escalating to HK$5,000 per document for prolonged delays. The Inland Revenue Department may issue an estimated assessment with substantially higher tax liability than properly filed returns. Directors may also face legal proceedings, including prosecution, which can result in fines of up to HK$300,000 and potential disqualification as a director. We help you stay on track with timely reminders and efficient scheduling to avoid these risks entirely.

When must the first audit be completed?

Your company's first audit must be completed within 18 months of incorporation. Subsequent audits must be conducted annually within 9 months of the financial year-end.

Do I need to submit audited financial statements with my tax return?

Yes, the Inland Revenue Department (IRD) requires all corporations to submit audited financial statements and an auditor's report as supporting documents when filing the Profits Tax Return (PTR). Since April 2023, this requirement applies even to small companies with gross income under HK$2 million.

How long does an audit take?

Most audits are completed within 4 to 8 weeks from receipt of all required documents. The timeline depends on the complexity of your business, volume of transactions, and the completeness of records provided.

How much do external audit services cost in Hong Kong?

Audit fees vary based on transaction volume, business complexity, and industry. Fees typically start from HK$3,000–HK$5,000 for dormant or very small companies and increase based on audit hours required. Contact us for a free, no-obligation quotation tailored to your company.

Related Services

Explore our other professional services designed to support your business beyond the audit engagement:

• Bookkeeping and Accounting Services — Accurate financial record keeping and management accounts preparation.
• Financial Statements Preparation — Professional preparation of financial statements in HKFRS or SME-FRS format.
• Hong Kong Profits Tax Filing — Tax return preparation and compliance alongside your audited accounts.
• Hong Kong Company Formation — New business setup and company incorporation services.