How do I change auditors in Hong Kong?
Appoint the new firm at the right point (usually the AGM or an equivalent general meeting), remove or accept the resignation of the old auditor, file Form NA1 or NA2 within 15 days, and arrange for the old auditor to share work-related information. The new auditor normally contacts the old one under the ethics code.
Choosing the route
- At year-end, not reappointing: members can resolve not to reappoint, with special notice where required (s.403(2)(c)), or the auditor can decline.
- Mid-term: remove by ordinary resolution with special notice (s.419), or the auditor resigns (s.417).
Steps
- Pick the new firm, check its AFRC registration and independence, and agree an engagement letter and fee.
- Tell the outgoing auditor if the change is a removal or non-reappointment; they may deliver a statement of circumstances (ss.424-427).
- File with the Registrar within 15 days: Form NA1 for removal (s.419(4)) or NA2 for resignation (s.417(3)).
- Appoint the new auditor (s.396 or s.397), noting the new person does not take office until the previous appointment ends (s.402(2)(a)).
- Allow the outgoing auditor to give work-related information to the incoming auditor in good faith (s.414).
Professional clearance The HKICPA Code of Ethics asks a prospective accountant to evaluate the threats before accepting an engagement held by another accountant. Depending on the engagement, that may call for direct communication with the existing accountant to establish the reasons for the change.
Avoid Leaving the change late in the year, or changing firms to avoid a qualified opinion. Outgoing auditors' circumstances can be raised with members.
Legal basis
- Companies Ordinance (Cap. 622), ss.396, 397, 402, 403, 414, 417, 419, 424-427
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.
- 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.
- How can a Hong Kong company remove its auditor?Members can remove an auditor by ordinary resolution at a general meeting, after special notice. The company must send the auditor a copy of the notice and, if the resolution passes, file the prescribed notice (Form NA1) with the Registrar within 15 days.
- What happens when the auditor resigns from a Hong Kong company?The auditor resigns by written notice with a statement of circumstances. The company must file a notification (Form NA2) with the Registrar within 15 days of receiving the notice, or face an offence. The company then needs a new 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.