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What are the requirements for bank confirmation in the audit of a Hong Kong company?

Released Date: May 23,2022 Article Source: HUANZE

This is the peak period for corporate audits in Hong Kong, during which a large number of Hong Kong companies have been issued by the Hong Kong Inland Revenue Department2021/2022Tax table for the year of assessment, if the period covered by the financial statements is2021years1month1sunrise2021years12month31After receiving the tax form issued by Hong Kong Tax Bureau, you can apply for an extension to the tax bureau2022years8month31Day. If the period covered by the financial statements is2021years4month1sunrise2022years3month31Date. The latest date for filing tax forms is2022years11month15Day.

 At presentHong Kong corporate auditDuring this period a large number of Hong Kong companies have been issued by the Hong Kong Inland Revenue Department2021/2022Tax table for the year of assessment, if the period covered by the financial statements is2021years1month1sunrise2021years12month31After receiving the tax form issued by Hong Kong Tax Bureau, you can apply for an extension to the tax bureau2022years8month31Day. If the period covered by the financial statements is2021years4month1sunrise2022years3month31Date. The latest date for filing tax forms is2022years11month15Day.

After reaching the engagement letter with the client, the implementation beginsHong Kong corporate auditWork, the first step is to do the bank confirmation letter. Auditors are required to verify bank deposits (including zero balance accounts), transactions and information with financial institutions, unless there is sufficient evidence that bank deposits (including zero balance accounts), transactions and information with financial institutions are not material to the financial statements and that the risk of material misstatement associated with them is low (depending on the auditor's professional judgment).

The format of bank confirmation varies from auditor to auditor. In general, our auditor uses unlisted information for confirmation, which requires the bank to confirm the amount of the customer's deposit in their institution and whether it is restricted. Not specifying the information can achieve the integrity of the proof.

Of course, different banks have different requirements, and the final format can be adjusted through negotiation.

What are the requirements for bank confirmation in the audit of a Hong Kong company?

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