5 November 2025
Preparing entity charts for an intercompany audit
How a clear group chart shortens scoping calls and prevents missed sister companies in Hong Kong structures.
An entity chart is the first document we request. Without it, scope letters guess at sister companies and miss dormant vehicles that still hold aged balances.
What a useful chart shows
- Legal name, company number, and jurisdiction for each entity
- Ownership percentages and immediate parent
- Primary activity in one line (trading, holding, service)
- Whether the entity is active, dormant, or in strike-off
Hong Kong specifics worth labelling
Many groups keep a BVI or Cayman holdco above Hong Kong operating companies. Even if that holdco issues few invoices, it may sit in the receivable chain. Label it. Likewise, branches that are not separate legal entities should be marked so we do not treat them as counterparties.
One page is enough
We do not need a glossy brochure. A dated one-page diagram emailed before the briefing call is enough to draft a scope letter that names the right companies and avoids mid-engagement surprises.