Hong Kong Regulations

COMPANIES (REVISION OF ACCOUNTS AND REPORTS) REGULATION - SECT 10

Audit report on revised accounts

(1) Subject to subsection (2), the current auditor of a company shall make a
report to the members of the company on the revised accounts.

(2) Where the auditors' report on the original accounts has been made by a
person other than the current auditor of the company, the directors of the
company may resolve that the report on the revised  accounts is to be made by
that person if the person—

   (a)  agrees to do so; and

   (b)  would be qualified under the Professional Accountants Ordinance (
        Cap 50) for, and would not be disqualified under section 140 of the
        Ordinance from, appointment as auditor of the company.

(3) An audit report on any revised accounts—

   (a)  is to be read before the company in the general meeting at which the
        revised accounts are laid; and

   (b)  is open to inspection by any member.

(4) Subject to subsection (5), an audit report on any revised  accounts is to
state whether in the opinion of the person making the audit  report—

   (a)  in the case of a company that is entitled to avail itself, and has
        availed itself, of the benefit of Part III of the Tenth Schedule to
        the Ordinance—

        (i)    the revised accounts have been properly prepared in accordance
               with the provisions of the Ordinance applicable to the company;
               and

        (ii)   on that basis, the revised accounts give a true and fair view,
               seen as at the date of the original accounts, with respect to
               the matters set out in section 141(3)(b)(i), (ii) or (iii) of
               the Ordinance; or

   (b)  in the case of any other company—

        (i)    the revised accounts have been properly prepared in accordance
               with the provisions of the Ordinance; and

        (ii)   the revised accounts give a true and fair view, seen as at the
               date of the original accounts, with respect to the matters set
               out in section 141(3)(a)(i), (ii) or (iii) of the Ordinance.

(5) If the shareholders of the company have agreed, for the purposes of
section 141D of the Ordinance, that that section applies with respect to a
financial year of that company, an audit report on any revised accounts for
that financial year is to state—

   (a)  whether or not the person making the audit report has obtained all the
        information and explanations that he has required; and

   (b)  in the case where the audit report refers to a revised balance  sheet,
        whether, in that person's opinion, the revised balance sheet is
        properly drawn up so as to exhibit a true and correct view, seen as at
        the date of the original balance sheet, of the state of the company's
        affairs according to the best of his information and the explanations
        given to him, and as shown by the books of the company.

(6) Section 141(4), (5), (6), (7) and (8) of the Ordinance—

   (a)  applies to an audit report on any revised accounts, as it applies to a
        report made by an auditor under that section 141 on the
        original accounts; and

   (b)  applies to a person making an audit report on any revised  accounts,
        as it applies to an auditor making a report under that section  141 on
        the original accounts.

(7) In this section—

"date of the original balance sheet" (原資產負債表日期) means the date
on which the original balance sheet is approved by the board of directors of
the company under section 129B(1) of the Ordinance;

"original balance sheet" (原資產負債表) means the balance sheet that is
the subject of revision by a revised balance sheet.

(8) A reference in subsection (4) to a provision of the Ordinance is to be
construed, where the provision has been amended after the date of 
the original accounts but before the date of revision, as a reference to the
provision as in force at the date of the original accounts.

"date of the original balance sheet" (原資產負債表日期)

"original balance sheet" (原資產負債表)