Can an overseas auditor audit my Hong Kong company?

The rule Section 393 limits appointment as auditor of a company to a practice unit. Practice units are registered in Hong Kong through the AFRC. An overseas firm without that registration cannot sign the Hong Kong statutory audit report.

Common set-ups for foreign-owned companies

• Local statutory audit + group reporting. A Hong Kong practice unit audits the Hong Kong company; the parent's group auditor issues instructions and receives reporting packages. The two auditors communicate under their own standards.
• Network firms. The Hong Kong member of an international network is often the local auditor and the group auditor's contact.

Where an overseas name might still appear

• IRD's circular allows a Hong Kong branch of a foreign company to file unaudited branch accounts with specified supporting information if the foreign company is audited abroad, but that is a branch, not a Hong Kong limited company.
• Non-Hong Kong companies registered in Hong Kong have different rules (Part 16).

Practical advice Ask the group auditor for its reporting deadlines and templates early. The Hong Kong auditor then plans the work around them.

Independence rules apply to the Hong Kong auditor and, depending on the group structure, the wider network.