How do I check that my auditor is properly registered in Hong Kong?
Search the public registers kept by the AFRC for practising CPAs and for registered practice units, and ask the firm for the signing accountant's practising certificate number. The number is normally printed on the audit report.
Quick checks
- Ask for the practising certificate number of the CPA who will sign. IRD's profits tax return form asks for it (Item 7.1.2), and notes that it is usually shown on the auditor's report.
- Look the firm up on AFRC's public registers. The Companies Registry's FAQ points to the AFRC registers of practising certificate holders and practice units as the place to check.
- Confirm the entity named on the engagement letter is the registered practice unit, not a trading name of a non-registered service company.
- Check the report itself. It should be signed in the firm's name by a CPA (practising), with the date and address.
Warning signs
- A price far below what other firms quote, with promises of "no questions asked".
- No practising certificate number offered.
- An audit report signed by someone who is not a CPA (practising).
- A firm that refuses to meet or lets you sign blank documents.
Why it matters An audit by a person who is not eligible does not meet s.393 of the Companies Ordinance, and IRD asks on the return whether a Hong Kong practice unit audited the accounts. The company, not just the auditor, can be left with a problem.
If you suspect misconduct, AFRC investigates complaints about practice units and CPAs.
Legal basis
- Companies Ordinance (Cap. 622), s.393
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Who is allowed to audit a Hong Kong company?Only a practice unit can be appointed as auditor of a Hong Kong company: in practice a certified public accountant (practising) or a CPA firm or corporate practice registered with the Accounting and Financial Reporting Council. An employee or officer of the company cannot be its auditor.
- Does every Hong Kong limited company need an audit?Yes. Every Hong Kong company must have an auditor for each financial year and its financial statements audited, whatever its size or whether it trades. The only company that escapes is a qualifying private company that has validly become dormant under s.5 and s.447 of the Companies Ordinance.
- Why does Hong Kong require even a small private company to be audited?Hong Kong's Companies Ordinance makes audit a universal requirement for companies, because an independent report on the accounts protects members, creditors, lenders and the tax authority. Small companies get simpler reporting rules, not an audit exemption.
- Do I still need an audit if my company had no revenue or no business activity?Yes, unless the company has formally become dormant. Having no sales does not make a company dormant in law. If it had any expenses, bank charges or other recorded transactions, the audit duty continues for that year.
- My company is loss-making. Do I still need to audit it?Yes. Profit or loss has no bearing on the audit requirement. A loss-making company is audited every year, and the auditor will also look closely at going concern.