A company incorporated in Hong Kong with business operations is required to entrust a locally licensed auditor in Hong Kong to issue an audit report on the company's accounts every year, and the report contains the auditor's opinion on the audit report. The audit report of Hong Kong company is a powerful basis for the company to carry out financing, financing and listing. If there is a problem with the report, it will have a significant impact on the above matters. Let's take a look at the type of opinion that a general Hong Kong auditor will issue on an audit report:

First: an unreserved opinion. The auditor is satisfied that the financial evidence of the audited company is sufficient to comply with and comply with the Hong Kong accounting standards and relevant requirements. It is the most standardized and good audit report.

Second: reservations. The auditor considers it fair as a whole, but there are circumstances which have a material impact on the accounting statements. There may be information that is not available or matters that are not in accordance with the Company law, and the auditor will only reserve the matter if he is unable to confirm or deny some issues without evidence. Some problems occurred in some data, such as not receiving bank confirmation letter, having inventory but not taking physical inventory, auditing cycle exceeding the specified time, and not making combined report, are all reasons for reservations. It's a slightly flawed audit report.

No. 3: No opinion. Auditors cannot obtain sufficient audit evidence to form the basis of audit opinions, but they believe that the limited audit scope may have a very significant and extensive impact. If they cannot obtain sufficient and appropriate audit evidence, auditors cannot determine the legitimacy and fairness of accounting statements, and they will not express their opinions on the audit report. They are not willing to comment on whether the report can reflect the actual situation of Hong Kong companies. Generally, they are not informative reports.

Fourth: Opposing (negating) the opinion. Material misstatement and distortion of the report, so that the accounting statements do not conform to the provisions of the accounting standards for enterprises and relevant accounting systems issued by the state, and fail to fairly reflect the financial position and operating results of the audited entity as a whole. There is often misstatement, or deliberate concealment, false data. It's the worst audit report. It's generally not accepted.

Therefore, a good audit report is the basis of a company's financial standards, so we should not only issue the audit report on time every year, but also pay attention to the opinions of the audit report. In order to achieve the purpose of effective audit.

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