Annual Audit Completion
All Hong Kong private limited companies must have their accounts audited by a CPA (Practicing) registered in Hong Kong, regardless of company size or revenue. Audit must be completed before the Profits Tax Return (BIR52) can be filed.
Who this applies to
- ALL Hong Kong private limited companies without exception (no small company exemption like UK or Australia)
- Public companies
- All companies incorporated under the Companies Ordinance (Cap. 622)
What to file
Audited financial statements (balance sheet, profit and loss account, cash flow statement, notes to accounts) signed by the auditor. These are filed with the IRD as part of the BIR52 submission. They are NOT filed with the Companies Registry (unlike UK companies).
How to file
Engage a Hong Kong-registered CPA firm (member of the Hong Kong Institute of Certified Public Accountants, HKICPA). The auditor issues a signed audit report. The company director(s) sign the financial statements. The package is then filed with the BIR52.
Payment due
No filing fee for the audit itself. Audit fees are paid to the appointed CPA firm according to their invoice terms.
Penalties for missing this deadline
Failure to audit when required: Companies Ordinance breach, criminal liability for directors. Practically: inability to file the BIR52, leading to late filing penalties and IRD estimated assessments.
Filing checklist
- Appoint a HKICPA-registered CPA firm as auditor before year-end
- Prepare a trial balance and closing accounts package for the auditor
- Provide the auditor with all bank statements, invoices, contracts, and loan agreements
- Respond promptly to auditor queries to avoid delays
- Review the draft audited accounts and sign off
- Use the finalised accounts as the basis for the Profits Tax computation
Documents you'll need
- Complete accounting records for the year (bank statements, invoices, receipts, contracts)
- Prior year audited accounts for comparison
- List of all related-party transactions
- Details of any offshore profit claims for the year
- Fixed asset register and depreciation schedule
- Any correspondence with the IRD during the year
Common mistakes to avoid
- Leaving audit engagement too late (auditors are busy from April to August; engage by January for April year-ends)
- Not keeping proper accounting records throughout the year, leading to delays and higher audit fees
- Assuming a dormant company does not need an audit (it does if it has any transactions)
- Using an overseas auditor who is not registered with the HKICPA (the IRD will not accept the accounts)
Never miss a Hong Kong deadline
AccountsOS tracks every Inland Revenue Department (IRD) and Companies Registry (CR) deadline and reminds you weeks ahead.
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