Internal Control Review on Corporate Governance

Annual Risk Management and Internal Control System Review

The Boards of Directors of companies listed in Hong Kong (the “Board”) are required to disclose in the Corporate Governance Report (“CG Report”), their acknowledgement that it is their responsibility on risk management and internal control systems, reviewing their effectiveness and to disclose in a narrative statement on how they have complied with the code provisions. The Board also needs to disclose in a statement in the CG Report that a review on the effectiveness of the risk management and internal control systems has been conducted and whether the listed issuer considers them effective and adequate.

The Board is also required to disclose mandatorily on an annual basis of whether the listed issuer has an internal audit function, how often the system are reviewed and the process coverage. The Board needs to declare how they have discharged their duties under the new codes in relation to the requirements of the Internal Audit function.

How we can help:

The Board can appoint us to perform an independent review to evaluate the internal control environment and to facilitate the risk management of the companies and their subsidiaries in order to comply with the requirements under the code provisions on an annual basis.

  • We can prepare an Internal Audit Charter with reporting protocol in order to strengthen our client’s corporate governance.
  • We can facilitate with our client in performing an annual risk assessment which can identify the respective strategic, operational, financial and compliance risks our client is exposed to.
  • We can assist our client to formulate Internal Audit Plans based on the annual risk assessment result.
  • We can provide experienced audit professionals to implement the approved audit project(s) and deliver an internal control review report with deficiencies identified and recommendations provided. We can also assist our client to ensure the remediation actions are implemented timely and effectively.
  • Our service can also include establishing a full set of entity level and operational level policies and procedures.


Our Risk Management Services

We have solid experience in offering our clients practical solutions regarding risk management and internal control issues. With the support from Crowe Global, which is ranked among the top 10 global accounting networks, we are able to provide comprehensive risk advisory and internal audit services through our extensive group of network firms.