Who this is for
Finance directors and group CFOs of Hong Kong holding companies that consolidate three or more subsidiaries — trading, manufacturing, property, or professional services groups — and need a statutory or voluntary consolidation audit opinion for the board, bankers, or shareholders.
Result
You receive an independent auditor’s report on the consolidated financial statements, a management letter covering elimination and related-party findings, and a documented group audit file that traces from subsidiary trial balances through consolidation adjustments to the final group pack.
Scope included
- Risk assessment focused on consolidation, related parties, and foreign operations
- Testing of elimination journals, unrealised profits, and reciprocal balances
- Review of non-controlling interests and goodwill / bargain purchase accounting where present
- Coordination with component auditors under group instructions
- Opinion on the consolidated financial statements under the agreed framework (typically HKFRS or IFRS)
Scope excluded
- Bookkeeping or preparation of the consolidation worksheets (management remains responsible for the pack)
- Tax computation or profits tax filing
- Valuation of intangible assets or investment properties (we may rely on specialists you appoint)
- Internal audit outsourcing or continuous monitoring arrangements
Provider and process
An engagement partner based in Sheung Wan leads the file. A consolidation manager runs the elimination testing; field staff visit the parent and, where material, one or two key components. We open with a scoping call, issue an engagement letter, set group materiality, then execute interim and final fieldwork against your reporting calendar.
Timeline and location
Most groups with five to twelve entities close the audit within eight to twelve weeks of receiving a complete draft consolidation pack. Work is directed from Shun Tak Centre, Sheung Wan, with travel to subsidiaries in the Greater Bay Area or ASEAN when the component is material.
Preparation you should complete
- Current entity map and ownership percentages
- Draft consolidation worksheets and elimination schedule
- Related-party listing and intercompany reconciliations
- Component reporting packs locked to the same reporting date
- Prior-year audited group statements and management letter points
Constraints
We decline engagements where management cannot produce a coherent elimination schedule, or where a significant component refuses access without a component auditor in place. Independence rules may prevent us from auditing groups where we provide certain non-assurance services.
Fees
Fees are quoted as a fixed engagement fee after scoping. Indicative starting point for a straightforward Hong Kong parent with three to five local subsidiaries: from HK$180,000. Cross-border components, first-year consolidations, and significant foreign currency translation increase the fee. See Fees for factors we weigh.
Next step
Request an engagement letter with your entity count, year-end date, and reporting framework. We respond within two business days.
Ready to scope this engagement?
Send your entity list and reporting framework. We prepare a draft engagement letter after a short scoping call.
Request an engagement letter