Accounting & Audit in Hong Kong
According to the Companies Ordinance, a Hong Kong company is required to maintain accounting records to justify the transactions conducted in the company, as well as to disclose the financial position and performance of the company. Every year, the company is required to conduct an audit.
Records may be kept in print or electronic form. A Hong Kong company is required to keep records for 7 years from the end of the fiscal year. If the company does not keep proper records, the director of the Hong Kong company is liable to a fine or even imprisonment.
After the preparation of the accounting report, an audit is conducted annually.