According to Company Ordinance 141 (1), Auditor should perform independent audits on accounts of companies incorporated before submitting the accounting report to Inland Revenue, Hong Kong SAR Government.
Besides, the above statutory requirement, Audit has the following functions:
- Audit can improve the management quality of a company.
- Audit can assist entrepreneurs to achieve their corporate growth strategies by carrying out operational audits.
- Audit can enhance the confidence of shareholders in the management of a company since its accounts have been reviewed by CPA.
- Audit can increase the credibility of a company's account because it can provide reliable financial information for shareholders, taxation, creditors, and borrowing assessment.