 
Auditing, a Professional
Skill Helping Business
 Auditing
is a skill acquired by a Certified Public Accountant and
his staff to check accounting and financial information
maintained by a company so that they are in a position to
express an opinion on the Company’s financial state
of affairs. Checking is usually done against prescribed
standards and accepted practices.
The prime purpose of an audit is to enable independent
opinion to be expressed on the accounts a company so that
the readers can relied on the information as credible to
serve their different purposes.
Using Audit to Meet Regulatory
Requirements
Board of Directors of companies incorporated under Hong
Kong Companies Ordinances are required to have accounts
caused to be prepared and to be audited periodically by
Certified Public Accountants in Hong Kong. In general, owners
of unincorporated businesses, partnerships, autonomous or
voluntary institutions, whether they are big or small will
also cause accounts to be audited as they all know the risks
and the difficulties they could be involved in if their
accounts are not audited.
Audit Help to Save Problems
The prime difficulty, as an example, is the unforeseeable
risks associated with the inability to present audited accounts
of the current or prior years to enable a creditable source
of information is available to address queries from the
tax authority.
Another difficulty is the risk of attracting unnecessary
suspicion on the handling of monies or resources of an entity
if accounts thereof are not independently audited.
Get Audit Done for Multiuse
Purposes
Irrespective of the abovementioned risks, a Certified Public
Accountant engaged to perform audit on the accounts of an
entity will be able to report whether the accounts will
show a true and fair view of the entity’s state of
financial affairs at certain point in time. The same set
of audited accounts will serve a number of different purposes
as listed hereunder:
- Serving tax requirements;
- answering to banks’ request for accounts;
- serving special purposes of banks, insurance and securities
companies;
- meeting special needs such as stock exchange listing,
purchase and sale of companies’ shares, estate duty
calculation, investigation for frauds, litigation.
How You Are Served Even
More
Having performed an audit assignment, the auditor involved
could have a good understanding of your management and operational
systems. The auditor is therefore able to identify areas
of potential weakness of which monies, resources, liabilities
and financial risks are involved. These weaknesses, if any,
will be exposed in the auditor’s management letter
addressed to Company Board following the completion of audit
work. This information will be a strong help to management
to cause improvements which at the end will benefit all
concerned.
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