Auditor's Report
Accounting and Auditing
The auditor's report is a report issued by a professional accountant after completing the auditing procedures. According to the Hong Kong Company Ordinance, a limited company has to appoint an independent and qualified accountant or auditor to perform annual audit on the company's financial statements. The audit process involves a collection and analysis of financial data for assessing the financial position of the company. The professional accountants will then draw conclusions and make a financial report based on the criteria set by the Hong Kong Institute of Certified Public Accountants.
The purpose of an audit is to assess whether a company's financial position shows a true and fair view. An unqualified auditor's report will be issued if auditors consider there are no material misstatements on the financial statements. Auditor's report is also useful to shareholders and bankers for business discussions.