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Does the auditor require confirmation of current payment in Hong Kong company?

Released Date: Dec 30,2022 Article Source: HUANZE

Many Hong Kong companies will have a lot of money left over at the end of the audit period. It is normal for the company to have current funds at the end of the trade period, the Hong Kong company only needs to confirm according to the requirements of the auditor.

 Many Hong Kong companies will have a lot of money left over at the end of the audit period. It is normal for a company to have a current account at the end of the trade period.Hong Kong companyJust follow the auditor's request for confirmation.

But a lotHong Kong companyIn the process of the company's operation, the company's accounts are not sorted out and summarized, and the company's accounts will not be clear when audited at the end of the period, and the audited current payment may not be consistent with the actual payment. In this case, the other company may not follow the request of the audit company.

In the case of non-return letter, the auditor has no way to confirm the authenticity of the current payment, so it will express reservations on the current payment. More importantly, if the tax bureau has questions about the current payment and sends a letter to inquire, the Hong Kong company has no way to reply, then the Hong Kong Tax Bureau is likely to doubt the authenticity of the company's business.Hong Kong companyThere is a risk of fines and back taxes.

SoHong Kong companyIn the process of operation, we should have a clear understanding of the trade situation of our company, so as to reduce the operational risks of our company.

Does the auditor require confirmation of current payment in Hong Kong company?

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