Intercompany transaction audit

Who this is for

Group financial controllers, CFO offices, and audit committees of Hong Kong companies that trade or recharge across subsidiaries, sister companies, or overseas affiliates. The engagement suits groups preparing for statutory audit, Inland Revenue enquiries, or board questions about related-party balances.

Result you receive

A signed findings letter describing exceptions, unsupported charges, cut-off issues, and aged open items — plus a working-paper index your internal team or statutory auditor can follow. We do not issue a statutory audit opinion; this is a specialised transaction audit focused on intercompany activity.

Scope

Included

• Mapping of intercompany revenue, cost of sales, and management recharges for the agreed period
• Sample testing of invoices and credit notes against contracts or board minutes where available
• Reconciliation of intercompany receivables and payables at period end
• Review of foreign-exchange treatment on open balances denominated outside HKD
• Draft findings discussion with your finance lead before the final letter

Excluded

• Full statutory financial statement audit
• Transfer pricing study or advance pricing arrangement filing
• Tax computation preparation
• Restatement of prior-year ledgers (we can note recommended adjustments; booking remains with you)

Provider and process

Engagements are led by a Clouddatasynccom manager based at Two Harbour Square, with fieldwork support from senior associates. Process stages:

1. Briefing call — entity chart, known disputes, and timing constraints
2. Scope letter — fees, entities, period, and access requirements
3. Document request — trial balances, subledgers, sample invoices, and recharge packs
4. Fieldwork — testing and reconciliation over the agreed window
5. Findings discussion — draft exceptions reviewed with you
6. Final letter and papers — delivered in PDF and organised folders

Timeline and location

Most engagements covering three to six Hong Kong entities for one financial year take four to eight weeks from kick-off, depending on document readiness. Fieldwork may be conducted at your office, at our Kwun Tong premises, or through a mix of on-site days and secure file exchange.

Preparation

Please nominate a single finance contact, grant read access to the relevant ledgers, and flag any known disputes early. Delays in invoice packs or entity charts extend the timeline; we note such delays in the findings letter where they affect completeness.

Pricing basis

Fees start from HK$85,000 for a single financial year covering up to four Hong Kong entities with moderate transaction volume. Additional entities, multi-year coverage, or high invoice volumes are quoted after the briefing call. A deposit is due on acceptance of the scope letter.

Next step

Request a scope letter with your entity count, period under review, and preferred meeting location. We reply within two business days.