Audit and Assurance
Today’s ever-evolving audit and assurance environment necessitates an all-round solution that addresses both the increasing complexities of regulatory requirements and the stakeholders’ pressing demands for greater disclosure and transparency, whilst keeping the individual needs, risks and challenges of the business uppermost in mind.
We understand how important robust reporting is in protecting your business and encouraging it to prosper, so that is why CW goes beyond ensuring compliance with stringent regulatory requirements. With utmost professional objectivity and independence as well as unrivalled technical expertise, we strive to ensure that your path to success is unhindered by any potential risks and pitfalls as much as possible.
As required by Hong Kong Companies Ordinance, each and every limited company incorporated in Hong Kong needs to be audited on an annual basis. Such audited financial statements are submitted together with the tax return to the Inland Revenue Department (“IRD”) of the Hong Kong SAR government. In Hong Kong, there is no sales tax or value added tax; therefore, the audited financial statements are an important source of financial information for the IRD. Other major users of audited financial statements include shareholders, financiers, suppliers and other stakeholders. These users require audited financial statements to fulfill their information needs and to make sound decisions. CW firmly believes that adhering rigorously to Hong Kong and/or international standards of auditing is integral to the credibility of the audited financial statements.
In the course of issuing audit reports on the truth and fairness of annual financial statements, we observe the importance of meeting different reporting deadlines and that of timely communication with relevant parties to ensure that any critical issues are resolved properly. Instead of meeting our clients only in the course of carrying out the audit, CW communicates with the clients on a continuous basis. This would ensure that we understand the latest developments of our clients so that we can swiftly identify and mitigate major business and audit risks should any arise.
CW can also help in:
- Ensuring compliance with regulatory reporting requirements;
- Advice on application of acceptable accounting treatments for complex transactions;
- IFRS reporting.
Internal control review
For external auditing purposes, there is no need for an external auditor to attend to every fine detail of the internal control system; their responsibility is usually to ensure that a relevant and reliable set of financial statements is made available in a timely manner. Whilst it is the responsibility of an organization’s management to provide accurate financial information, material misstatements might creep into financial statements because of certain inherent and control risks. To mitigate such inherent risks, a sound internal control system needs to be in place. In addition to assisting management in the provision of reliable financial statements, an internal control system also helps them in the following aspects:
Implementation and enforcement of policies designed by management;
Safeguarding assets and resources of the business;
Supporting management in efficient and effective operations of the business.
There are five major components of internal controls: control environment, risk assessment, control activities, information and communication, and monitoring. CW can assist in:
- Developing awareness, expertise and alignment;
- Conducting preliminary impact assessment;
- Facilitating broad awareness;
- Developing and executing the internal control plan;
- Driving continuous improvement.
CW’s team has years of practical, hands-on experience in serving different industries, helping organizations to solve a wide spectrum of problems which affect their operations and to identify areas of improving efficiency and effectiveness through internal control review.
Organizations employ an internal control system to mitigate the risk of material misstatements in financial statements. To ensure that the internal control system is implemented properly, it is monitored through an internal audit function.
Our services include:
- Operational audit;
- Compliance audit;
- Workflow audit;
- Checking of the internal control system and providing recommendations for improvements.
Special Purpose Audit/ Review/ Other Assurance
In today’s fast-paced and globalised marketplace, the nature and breadth of audits should reflect the increasing complexities within the business operating environment as well as the rising number of local and cross-border capital transactions . This is why we provide special audit/ review/ other assurance for different operational purposes to meet different management objectives and demands.
On request, we can also provide a bespoke special audit specially geared to your needs.
Our services include:
- Financial due diligence;
- Special audit for issues in relation to the merger, acquisition, listing and lawsuit of a company;
- Royalty audit;
- Profit forecast review;
- Special audit based on the client’s requirements.