Not every Dongguan factory requires a full component audit. Some balances can be tested from the Hong Kong parent with shipping documents and bank evidence. Others cannot.
Involve a component auditor when
- The subsidiary’s assets or profit are significant to the group
- Inventory or plant is material and cannot be observed from Sheung Wan
- Local books are kept under a different framework and need reconciliation expertise
- Language or site access limits the group team’s effective testing
Instruction letters matter
The Hong Kong group auditor must instruct the component firm: materiality, risks, reporting deadline, and the form of the memorandum. A vague “please audit the subsidiary” email creates gaps that delay the consolidation opinion.
Appinfraconnect regularly coordinates with Greater Bay Area component firms as part of our component auditor coordination work. Decide early — ideally at planning, not in the week before the board meeting.