In international trade, L/C settlement is the choice of many enterprises, which is inHong Kong corporate auditBank letter of credit will also involve some audit issues:

Generally, Hong Kong companies receive letters of credit from banks, and the bank will fill in the letter of credit in the letter of confirmation, so the amount of letter of credit on the financial statement should be consistent with the amount of the letter of confirmation. However, in the actual business, some customers secretly discussed with their supplier that they would not accept one of the letters of credit issued by the supplier, but the customer did not go to the bank to deal with it, and his own book was written off, which resulted in the inconsistency between the letter of credit provided by the customer and the letter of credit on the bank confirmation letter. If there is any inconsistency, the auditor will ask the reason in detail and ask the customer to adjust the amount of the letter of credit on the book to be consistent with the bank confirmation letter, otherwise there will be reservations.

Thus, a professional auditor can control the risk of clients. If the auditor directly adjusts the account without asking the reason, the Hong Kong Tax Bureau will inquire several years later, and the customer cannot explain the reason due to the irregular financial system and the change of financial personnel, it is likely to bring tax risks to the customer, because the tax bureau will think that the customer is suspected of tax evasion.

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