Audit services are used for presentation at the annual general meeting. Under Hong Kong's company law, all Hong Kong limited companies are required to prepare an audited annual financial report every year and submit it to the annual general meeting of shareholders. Audit fees are generally set according to the turnover and balance sheet.

What is audit?

An audit is the auditor's opinion on whether the financial statements (information verified to the extent that reasonable assurance is given) are presented in accordance with accounting standards. Auditors gather evidence to determine whether the financial statements are free from material errors or other misstatements.

Do Hong Kong companies have to be audited?

Yes, all limited companies incorporated in Hong Kong, including those operating overseas, are required to pass the audit process every year. This is a legal requirement in Hong Kong for all limited companies under the Hong Kong Companies Ordinance and the Inland Revenue Ordinance, so companies must submit statutory audits in accordance with Hong Kong's financial reporting standards.