A Company that had been incorporated under Cap.622 need to draw up their Financial Statements and subjected to be audited annually except as stated in Hong Kong Company Ordinance Section 379, according with the Audit and Accounting Conceptual Framework 2018 issued by Hong Kong Institute Certified Public Accountants (HKICPA) .

Audit and Accounting Conceptual Framework is a guideline to the Hong Kong company’s director(s) which hold in office for the purpose of drawing up the company financial statement in a true and fair view to the company’s stakeholder(s). In the Conceptual Framework that had been issued by HKICPA had stated the requirements to a Financial Statements of a Company shall include and being reported for the interest of the Financial Statements user.

For companies that is form under Cap.622 have to be performed their accounting and audit with following the below stated standards.

Hong Kong Financial Reporting Standards (HKFRS)	HKFRS set out all recognition, measurement, presentation and disclosure requirement which dealing with all events for the companies that had been registered under Hong Kong Company Ordinance Cap.622. This reporting standard is aligned with the International Financial Reporting standards (IFRS) which is suitable to international businesses which would like to perform a consolidated report. Also, HKFRS had been taken as the general conceptual framework for all of the companies that is set up in Hong Kong, as a guideline to draw up their financial report.
Hong Kong Financial Reporting Standards for Private Entities (HKFRS for PE)	The purpose of HKFRS for PE is an audit and accounting framework to ease the burden for the companies that is fulfill the requirements as below stated from applying the full HKFRS. Companies that is entitled to report under HKFRS for PE Companies does not have their shares or liability traded in the public market, for instance Hong Kong Stock Exchange or any other Stock Exchange Board. The Companies that have not holds any third party aside from own primary business fiduciary assets, such as assisting non group member to manage their assets. Any entities that fulfill the above stated shall be applicable to prepare it’s financial statements under HKFRS for PE, even if the entity have it’s holding company being prepared in other kind of framework, it was not restricted to be prepared it’s own financial statements under HKFRS for PE.
Small and Medium-sized Entity Financial Reporting Framework (SME-FRF&SME-FRS)	The Hong Kong Company Ordinance had introduced a reporting exemption to the Companies that is governed under Cap.622 and its predecessor Cap 32. This reporting standards are for the benefits for the Companies that is qualifies under the conditions as stated in the Section 359 of Cap.622. An entity which qualified for reporting under SME-FRF&SME FRS The Company is being incorporated under Cap 622 or Cap 32 of the Hong Kong Company Ordinance. The Company fulfill the condition stated in Section 359 of the Company Ordinance Cap.622. If any entity is not being incorporated under Cap 622 or Cap32 of the Hong Kong Company Ordinance, the Company should with reference of the Company’s local Company Law and Constitution, if the local Company Law and Constitution meet the requirement of Section 359 of Cap 622. The entity is being eligible to use SME-FRF & SME-FRS.

An audit shall be prepared in any company for the purpose of enhance the accountability, creditability and fairness of the company financial report to the users of the financial statements.

Any potential investor which would recently like to invest in a company or a potential merger would be interested to a company financial report. Also, the Company money lender, banker, the local tax authority and pension authorities is interested with the company's financial report.