A CPA in Hong Kong
, a certified public accountant, is a professional who has obtained the license that allows him or her to offer accounting services to the public. In Hong Kong, this profession is regulated and supervised by the Institute of Certified Public Accountants, which sets forth conditions for licensing and practicing, among others.
Working with a certified public accountant is advisable for business owners in Hong Kong as they can thuds make sure that a licensed CPA in Hong Kong will have proper command of the accounting principles in force and, at the same time, will follow the standards imposed in the regulated profession. When needed, investors can choose to work with a professional who is trained and experienced either in accounting and financial reporting or in auditing and assurance.
Who can become a CPA in Hong Kong?
Individuals can become a recognized and licensed certified public accountant when they follow a Qualification Programme, such as the one offered by the Hong Kong Institute of Certified Public Accountants
. This is a comprehensive training that includes education and examination stages and members of the Institute gain international reignition.
In order to become a registered CPA in Hong Kong, one needs to pass the practicing certificate examinations, which are mandatory for registration as a CPA. Those who complete the qualification programme offered by the Institute are exempt from the examinations, however, non-Hong Kong individuals who hold an accounting degree will need to follow through with the requirements for fulfilling the competency requirements.
Our team of lawyers in Hong Kong can give you more details about the laws that are in place for foreign professionals who wish to practice their profession in Hong Kong or open a business here.
What are the standards followed by an accountant?
A CPA in Hong Kong is an individual who adheres to the standards and the regulations currently in place. These refer not only to the accounting standards that are in place and implemented in Hong Kong, but also to quality assurance practices, compliance regulations and anti-money laundering rules and laws.
The Hong Kong Financial Reporting Standards are set forth by the Institute in close collaboration with the International Standard Setting Boards and by taking into account consultation documents and the regular meetings with key stakeholder groups.
A CPA in Hong Kong also observes the Code of Ethics for Professional Accountants, which sets forth key ethical principles for preparing and presenting information, as well as guidance for accountants in public practice.
Should I work with a CPA in Hong Kong?
It is recommended to choose working with a team of professional, licensed accountants. No matter the size of the business
, private and public companies in Hong Kong are all subject to accounting and financial reporting requirements (and, depending on size, also subject to auditing requirements). A close collaboration with a licensed accountant will allow investors to maintain proper books and records, and follow through with the ongoing compliance requirements.
Hong Kong accountancy statistics
According to the Hong Kong Institute of Certified Public Accountants, at the end of June 2021 there were 3,593 practicing certified public accountants. Other data shows the following:
- Members: in June 2021, the Institute of Certified Public Accountants had 40,577 total members;
- Fellow members: in addition to the members of the Institute, another 1,540 individuals were fellow members;
- Non-practicing: out of the total number of certified public accountants in the Institute, 36,964 were non practicing;
- Mode of practice: 49% of the total number of individuals were practicing in their own name and 1,635 as a sole proprietor or a partner in a firm; only 839 individuals were practicing as a shareholder or director of a corporate practice and 142 as an authorized signatory of a firm;
- Gender distribution: 49.4% of the total number of members were men and 50.6% were women (both practicing and non-practicing members);
- Registered office: most of the practicing certificate holders had their registered office of practice located on Hong Kong Island (60.2%); 95.1% of the registered members also had Hong Kong as their location of residence and only 4.9% stated that they resided outside of Hong Kong.
According to the available statistics, most of the certified public accountants in Hong Kong started that the undertake most of their work in Hong Kong, and only 3% also undertake work overseas.
if you need more information about the general accounting rules or if you wish to work with a CPA in Hong Kong