What is Auditing? What is the difference between auditing and accounting? What documents do I need to provide for auditing?
What is Auditing?
Audit is the process of systematically reviewing, evaluating and reconciling a company's financial records and financial-related information. The purpose is to assess the reliability of a company's financial position, financial records and financial related information, and to issue an audit report. The audit report is used by the Inland Revenue Department for tax calculation purposes and also provides evidence of the legitimacy of the company's business activities.
What is the difference between auditing and accounting?
Simply put, accounting is the process of recording and processing financial information, and auditing is the process of examining, evaluating and checking the legitimacy of that financial information.
What documents do I need to provide for auditing?
When a company is to be audited, it needs to provide a large amount of information and documents to examine the company's financial position and tax compliance. These documents include the company's profit and loss account, balance sheet, MPF contribution statement, payroll, general ledger and bank statements, etc., through which the auditor can get a basic understanding of the company's financial and tax position.
To make it easier for you to watch and understand what documents you need to provide for auditing, we made a video:
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