Audit & Assurance

Statutory audit refers to mandatory audits that must be carried out in accordance with legal provisions, such as the annual Chinese Certified Public Accountant audit conducted by foreign-invested enterprises or listed companies. The Hong Kong Companies Ordinance also stipulates that limited companies registered in Hong Kong must appoint Hong Kong certified public accountants to audit the company's accounts annually. Auditors will review the income statement, balance sheet, and related notes based on auditing standards, and evaluate whether the accounting system formulated by the enterprise complies with generally accepted accounting standards and whether the accounting standards are effective in practical application.

The audit team of Rengang Yongsheng provides statutory audit reports that comply with auditing standards, while adhering to the principle of independence, and expresses an audit opinion on the authenticity, fairness, and consistency of the financial statements and accounting records of the enterprise. When necessary, we will issue a management proposal, report major issues to the client's management, propose improvement plans, and provide reference suggestions on how to improve governance level.

Information required for auditing (number of audits)

Audit annual financial statements (including income statement, balance sheet, and cash flow statement)

Accounting records for the current year (including bank statements, contracts, expense invoices, and documents)

List of affiliated companies and related parties involved

Other relevant information

Audit process

Develop an audit plan and determine audit objectives

Understand the internal control system of the enterprise and provide evaluation

Collect and record or copy relevant information

Compliance testing and result evaluation

Substantive control and evaluation of results

Draft audit report and convey it to the audited company