In the audit of Hong Kong companies, there are often cases of investment subsidiaries, so whether the investment subsidiaries need to issue mergerHong Kong companyWhat about the audit report? I would like to share with you todayIn Hong Kong company audit, if the investment subsidiary is required to issue a consolidated audit report. At this time, the audit report or financial statement with the same closing date of the subsidiary and the Hong Kong company should be provided.

Audit reports or financial statements of subsidiaries must be in English or the Chinese version. Audit reports in other languages are not accepted. The auditor is required to recognize impairment losses based on the audit report or financial statements of the subsidiary to determine whether the investment in the subsidiary is showing signs of impairment. If the audit report or financial statement of the subsidiary is not provided, the auditor will have reservations about the investment of the subsidiary because the value of the subsidiary cannot be correctly judged. The Hong Kong company and subsidiary as a whole can issue a consolidated audit report, there is no need to issue a separate audit report for the Hong Kong company.

What about not having to do a consolidated audit report? Only the shareholders of Hong Kong companies are incorporated by another corporation100%A merger report is not required at the time of holding, as the obligation to merge is the shareholders of the Hong Kong company (incorporated company).

Only more understanding of corporate audit in Hong Kong can better reduce audit risks.

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