Audit Report Requirements in Hong Kong

Kristina Coluccia
Jun 19
2 min read

For companies operating in Hong Kong, preparing and submitting annual audit reports is not just a best practice—it is a statutory obligation. Understanding the requirements around audit reports is essential for maintaining compliance, building trust with stakeholders, and ensuring smooth business operations.

Who Needs to File an Audit Report in Hong Kong?

All Hong Kong-incorporated companies, whether they are actively trading or not, are required under the Hong Kong Companies Ordinance to prepare annual financial statements and have them audited by a certified public accountant (CPA) who holds a practising certificate. This applies equally to:

Private limited companies
Public companies
Non-Hong Kong companies registered in Hong Kong

Even if a company has no business transactions, an audit report may still be required, unless the entity qualifies for dormant status.

Key Elements of a Hong Kong Audit Report

A standard Hong Kong audit report typically includes:

Financial Statements: Balance sheet, profit and loss account, and cash flow statements.
Director’s Report: Overview of the company’s operations and financial position.
Auditor’s Opinion: An independent assessment of whether the financial statements give a “true and fair view” of the company’s financial health.

Filing Timeline and Compliance Obligations

Companies are required to file audited financial statements annually with the Inland Revenue Department (IRD) along with their Profits Tax Return (PTR). Generally, the deadlines are:

First PTR: Within 18 months of incorporation.
Subsequent PTRs: Filed annually, typically within one month of the date specified on the IRD notice.

Failure to comply can result in penalties, prosecution, or reputational damage.

Why Audit Reports Matter Beyond Compliance

Audit reports are more than just a compliance exercise. They:

Enhance credibility with investors, banks, and potential business partners.
Provide a transparent record of financial health.
Help identify areas for operational or financial improvement.

How Woodburn Can Support

Navigating audit requirements in Hong Kong can be complex, particularly for new businesses or companies with cross-border operations. At Woodburn Global, we provide comprehensive accounting, audit coordination, and compliance services. Our team ensures your audit reports meet all regulatory requirements, while offering strategic insights to strengthen your business operations.

Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.