Audit & assurance services

Effective audit and assurance for dynamic markets

The world changes faster and faster, influenced by globalisation, geopolitics, artificial intelligence (AI), robotics, big data, cryptocurrency and more.

However the needs of business owners and their stakeholders are unchanged. They need honest, trustworthy financial data presented to them in a way that facilitates sound decision-making.

Importantly, they need to know the data is verified by independent parties, that are honest, trustworthy, reliable people. This has been our role since 1964. We will faithfully provide that service for the foreseeable future.

Modern, efficient, effective

Our role hasn’t changed much, but we have always invested in modernising our methodology, approach, technology and scope.

We tailor our auditing and assurance services precisely to your organisation’s needs.

Discover the difference we make to your accountability and transparency.

Statutory auditing

Strategic advice for total compliance
Fung Yu professional auditing services help you better understand your business needs. Plus, you get timely and constructive advice to manage future expansion.

We report to the shareholders of each company independently.

Our strategic advice ensures compliance with local legal requirements at all times. We flag potential issues before they escalate – and offer solutions to address them.

We perform annual audits in accordance with:

  • Hong Kong Financial Reporting Standards (HKFRSs)
  • International Financial Reporting Standards (IFRSs) Statutory Auditing

You can trust us for professional opinions on your accounting and auditing issues.

We’ll advise you of your legal obligations, local regulations and compliance.

Reporting accountants

The Fung Yu audit team has considerable experience handling transactions and corporate functions for listed and private companies.

For mergers and acquisitions, we can perform assurance engagement on financial statements, issue accountant reports, and prepare unaudited pro forma financial statements and profit forecasts.

Financial statement reviews

Financial reporting standards, whether HKFRS or IFRS, are always evolving and adopting them can be tricky.

We provide reviews through inquiry and analysis on financial statements, such as interim statements, then issue reports based on our results.

Generally speaking, the scope of a review and level of assurance is less than an audit. It’s usually sufficient for special management reports, and presentations to management, investors and potential acquirers.

Our experienced accountants and technical experts can share their experience with you. They can help your in-house finance team resolve technical issues and add extra assurance to the report.

Compilation engagements

Apart from general audit and assurance engagements, we can provide compilation engagements to help you prepare and present financial information.

A compilation engagement can be used if there is a need for you to engage an independent CPA firm to prepare and present certain financial information. Such a report will be issued under our firm’s name.

The main purpose is to apply professional expertise in accounting and financial reporting, comply with professional standards and clearly communicate the nature and extent of our involvement with the complying financial information.

The engagement can be carried out on a monthly, quarterly, annually or per contract basis.

Agreed-upon procedure engagements

To meet your needs we can tailor an engagement with you that focuses on specific areas of concern. We can provide factual reports and findings of agreed-upon procedures without expressing assurance opinions. Our factual findings can support further action, including developing a business strategy based on our services.

Situations where agreed-upon procedures become useful include:

  • Review and analysis of the results of turnover of certain sector or business unit (such as a Turnover Certificate for a shopping mall landlord)
  • Review and verification of expenses related to certain areas, say entertainment expenses claimed by departing senior staff
  • Review the valuation and recognition of inventory on hand
  • Compare the cash flow implications of two different project capitalisation methods.

Agreed-upon procedures can be a management power tool customised to very specific pain-points – for example we can act as an independent financial advisor to help you achieve a specific objective.

Financial projections and forecasts

We can test your hypothetical assumptions with prospective financial statements that present projected positions, operational results and cash flows.

Due diligence

A key Fung Yu service for mergers and acquisitions is due diligence. We have participated in many due diligence exercises during merger and acquisition projects. These have involved financial and tax issues for companies in Hong Kong, China and other Southeast Asia jurisdictions.

Unlike a statutory audit, our corporate due diligence service can identify and analyse transaction issues before they escalate during mergers and acquisitions. Your experienced Fung Yu team will reveal potential risks and crises, and help you understand the reality of the target and their financial positions.

Forensic accounting and litigation support

We can conduct financial investigations and forensic accounting to assist you in a litigation process.

This may involve collecting and providing an analysis of financial and accounting information, preparing requisite independent accountant’s reports and acting as an expert witness.

Business valuation

Thinking of an acquisition, disposal or merger? We provide independent valuations of a business entity in accordance with international standards.

Another common function we perform involves valuing a company as part of an asset declaration before an individual migrates.

It is common for tax authorities to request new migrants to declare the value of their assets upon landing.

We have conducted various engagements to provide valuation of shares in private companies, especially as part of Canadian pre-immigration tax advisory work.

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