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1. Audit Report Explained: What Does It Include?

An audit report is a key document for corporate financial transparency, prepared by professional auditors according to Hong Kong Financial Reporting Standards (HKFRS) and company financial conditions, ensuring financial statements are true and complete. The report consists of the following sections:

Structure and Main Contents of Audit Report

• Auditor's Opinion: Evaluates whether financial statements comply with HKFRS and ensures their accuracy.
• Financial Statements: Include balance sheet, income statement, and cash flow statement.
• Appendix: May include comments on specific transactions or further explanations and supplementary information.
• Auditor's Responsibility Statement: Explains audit scope, procedures, and conclusions.

2. What Does the Audit Opinion Represent in an Audit Report?

Based on financial data and evidence obtained during the audit process, auditors make professional judgments and issue four types of audit opinions:

• Unqualified Opinion: Financial statements comply with HKFRS without major errors.
• Qualified Opinion: Parts of financial statements don't comply with standards, but overall impact is limited.
• Adverse Opinion: Financial statements contain significant errors and don't comply with standards.
• Disclaimer of Opinion: Auditor cannot express an opinion due to insufficient data or other reasons.

How to Reduce the Risk of Hong Kong Tax Authority Audit?

• Ensure financial statements are complete and accurate
• Regular internal audits for compliance
• Maintain detailed records and evidence for unclear transactions
• Submit tax returns on time, avoid unusual delays

3. Is Cheap Accounting Audit Really Good?

Professional accounting audit services aren't necessarily expensive, but overly cheap audit services often have varying quality and may increase financial and tax risks.

An auditor's duty is to examine income statements, balance sheets, cash flow statements, and all related financial disclosures, writing audit reports based on analysis results to confirm compliance with HKFRS. However, some low-cost audit services prioritize quantity, and auditors might issue "qualified opinions" or "adverse opinions" without further verification even when financial data is questionable, leading to risks of tax authority audit or fines.

How to Balance Cost and Quality?

• OneStart's experienced accounting team provides thorough follow-up for peace of mind!
• Emphasizes audit report accuracy and transparency, carefully reviewing accounts to reduce future financial risks
• Ensures thorough communication with auditors for efficient accounting audit and tax filing, verifying financial data authenticity

4. Conclusion: How Should Companies Choose Suitable Audit Services?

Audit reports affect corporate compliance and tax risks. Low-cost audits may save short-term costs, but potential long-term risks may far exceed savings. Companies should choose qualified auditors to ensure accurate financial statements, reducing audit risks and protecting business development.

"Professional + Caring + Reliable" = Worry-free Accounting Audit!

OneStart Business Centre provides one-stop "Accounting • Audit • Tax Filing" services. Our professional accounting team has years of experience and customer trust, ensuring efficient accounting audit and tax filing experience. We can also act as tax representatives and provide professional advice. For more plan details, call 3575 6888 or contact OneStart Business Consultant via WhatsApp.

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