Case study

Hong Kong: Strengthening Audit Frameworks Across Borders for Industrial Conglomerate

The Client

Founded in 1922, the client is one of Hong Kong’s largest privately held industrial conglomerates. Its Australian subsidiaries are engaged in the trading of clocks, homewares, and consumer products, alongside investment holding activities. With a complex international structure, the group required a robust approach to audit oversight to ensure compliance and consistency across jurisdictions.

The Client Problem

The group faced significant challenges in implementing its audit framework. Regulatory complexity was a key concern, particularly with respect to compliance with HKSA 600 (Revised), which sets stringent requirements for group auditors overseeing component auditors. The variations in audit timelines and reporting formats across jurisdictions further compounded the challenge, making it difficult to align processes and consistently meet regulatory deadlines. Another challenge lay in ensuring quality and consistency: maintaining uniform audit methodologies across multiple countries, despite differing accounting and auditing standards, was essential for achieving reliable and comparable results across the group.

The Solution

To address these challenges, the firm established a comprehensive audit framework in collaboration with Nexia Melbourne. A centralised audit planning process was introduced, with the Hong Kong group auditor leading the overall strategy and oversight of audit activities. This centralised model ensured alignment across all subsidiaries, promoted consistent methodologies, and optimised resource allocation to deliver timely and accurate outcomes. Close collaboration with Nexia Melbourne formed a cornerstone of the approach, enabling the exchange of insights and expertise through ongoing communication. This partnership ensured the production of high-quality audit working papers that adhered to both international and local auditing standards. By combining the Hong Kong team’s strategic oversight with Nexia Melbourne’s local expertise, the framework provided a strong platform for effective financial reporting.

The Nexia Value

Through this initiative, the client significantly enhanced the integrity and efficiency of its audit processes. The new framework not only ensured compliance with complex regulatory requirements but also fostered consistency in audit quality across jurisdictions. By leveraging the strengths of both central oversight and local expertise, the group strengthened its ability to deliver reliable financial reporting. Ultimately, the collaboration supported the client’s long-term business objectives by embedding trust, transparency, and resilience at the heart of its financial governance.