The audit requirements for Hong Kong companies depend on the size and entity type of business.

1/ Statutory Audit: All Hong Kong companies, regardless of size or type, must have a statutory audit performed by a Hong Kong Certified Public Accountant (CPA) once a year. The purpose of Statutory audit is to provide an independent opinion on the accuracy of the financial statements and to ensure compliance with the Hong Kong Companies Ordinance.

2/ Non-statutory Audit: Some companies, such as those listed on the Hong Kong Stock Exchange, may require non-statutory audits, such as interim audits, special audits, or internal control reviews, in addition to the statutory audit.

3/ Audit Exemption: Small companies may be eligible for audit exemption if they meet certain criteria. For example, a private company with total revenue not exceeding HKD $100 million and total assets not exceeding HKD $400 million can apply for an exemption from the statutory audit. However, the exemption must be approved by the shareholders.

4/ Reporting Requirements: All companies must prepare and file audited financial statements with the Hong Kong Companies Registry within a specified period after the end of their financial year. Listed companies must also comply with additional reporting requirements set out by the Hong Kong Stock Exchange.

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