Audit and Assurance.

Statutory audit

As required by Hong Kong companies ordinance, each and every limited company incorporated in Hong Kong needs to be audited on an annual basis. Such audited financial statements need to be submitted together with the tax return to the Inland Revenue Department (“IRD”) of the Hong Kong SAR government. In Hong Kong, there is no sales tax or value added tax, and the audited financial statements are important source of financial information for IRD. Other major users of audited financial statements include shareholders, financiers, suppliers and other stakeholders. These users require audited financial statements to fulfill their information needs and in order to reach good decisions. CWCC believes that observing Hong Kong/ International standards of auditing is important to provide credibility to the audited financial statements.

In the course of issuing audit reports on the truth and fairness of annual financial statements, we observe the importance of meeting different reporting deadlines, and that of timely communication with relevant parties to ensure that any critical issues are resolved properly. Instead of meeting our clients only in the course of carrying out the audit, CWCC strives to communicate with the clients on a continuous basis. This would ensure that we understand the latest development of the clients, and strive to mitigate major business and audit risks on a swift basis.

CWCC can also help in:

• Meeting with regulatory reporting requirements
• Advice on application of acceptable accounting treatments for complex transactions
• IFRS reporting

Internal control review

For external auditing purposes, there is no need for external auditor to attend to each and every aspect of the internal control system. Their focus would be mainly to ensure that facet that provides timely, relevant and reliable set of financial statements. Whilst it is the responsibility of an organization’s management to provide accurate financial statements information, material misstatements might creep into financial statements because of inherent risks. To mitigate such inherent risks, management implements internal control system. In addition to meeting its objectives of providing reliable financial statements, internal control system also helps management in following:

• implementation and enforcement of policies designed by management
• safeguarding assets and resources of the business
• supporting management in efficient and effective operations of the business

There are five major components of internal controls: control environment, risk assessment, control activities, information & communication, and monitoring. CWCC can assist in:

• Develop awareness, expertise and alignment
• Conduct preliminary impact assessment
• Facilitate broad awareness
• Develop and execute internal control plan
• Drive continuous improvement

CWCC has years of practical experience in serving different industries, helping organizations to solve various problems which affect their operations and to identify areas of improving efficiency and effectiveness through internal control review.

Internal audit
Organization uses internal control system to reduce risks of material misstatements in financial statements. To ensure that internal control system is carried out properly, it is monitored through internal audit function.

Our services include:

• Operational audit
• Compliance audit
• Workflow audit
• Checking of internal control system and provide recommendations for improvements

Special purpose audit/ review/ other assurance
In today’s world, business operation environment is getting more complex, organizations need special audit/ review/ other assurance for different operation purposes to meet different management objectives and demands.

Our services include:

• Financial due diligence
• Special audit for issues in relation to the merger, acquisition, listing and lawsuit of a company
• Royalty audit
• Review of profit forecast
• Special audit based on the requirement of group and/or managerial level