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    Country by Country Financial Reporting and Auditing Framework

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    Preparation of and Filing of Statutory Financial Statements

    There is no general requirement for companies incorporated in Macau to file statutory financial statements.  Only companies in regulated industries are required to file audited financial statements with the regulating departments.  Regulated industries include gaming concessionary, MCO, banks and insurance companies.

    Companies are categorized as Group A or Group B taxpayers.  Taxpayers are required to file their annual tax returns with the Macau Finance Department.  The filing deadline for Group B taxpayers is March while the deadline for Group A taxpayers is June of the subsequent year.  For tax filing purposes, the year-end date must be 31 December.

    Group B taxpayers can prepare and file tax returns by themselves.  Group A taxpayers need to engage a Macau registered accountant or registered auditor to prepare and sign off on the tax returns.  Each taxpayer will be assessed independently.  There is no requirement for consolidated financial statements.


    Financial Reporting Framework

    Companies set up in Macau need to follow the accounting requirements set in the Commercial Code.  These are to prepare and keep the required accounting books and records, and properly record the transactions.  Group A taxpayers are required to follow General Macau Financial Reporting Standards, which are 15 simplified standards extracted from International Accounting Standards.  Regulated industries and companies limited by shares need to conform to 16 Macau Financial Reporting Standards, which are extracted from International Accounting Standards. 


    Audit Requirements for Corporations and LLPs Registered in Macau

    Statutory audits are only required for companies in regulated industries.  For tax filing purposes, there is no requirement to file with audited financial statements.


    Audit Appointment, Rotation and Joint Audits

    Only registered auditors in Macau can be appointed as auditors.  They may be appointed or removed at any time.  Companies of regulated industries need to report to the regulating departments when they change auditors.  Other companies may appoint auditors to perform annual audits on a voluntary basis.  There is no regulation requiring mandatory rotations of auditors.  Joint audit is very rare but it is not prohibited.


    Auditing Standards

    Registered auditors in Macau are required to follow Macau Auditing Standards, which is basically a summarized version of the major International Auditing Standards.


    Ethical Framework

    Registered auditors in Macau are required to follow the Code of Ethics for Registered Auditors, set by CRAC (Committee for the Registry of Auditors and Accountants) , which is a department of the Macau Finance Department.


    Audit Regulation

    Registered auditors in Macau are required to conform to Auditors' General Regulation set by the CRAC.  The Regulation sets out requirements regarding auditors' registration and de-registration, scope of practice, rights and obligations, disciplinary and criminal responsibilities, and disciplinary procedures etc.


    External and Internal Monitoring

    In general, there is no requirement for external review of audit work.  Only audits assigned by government will be reviewed by the CRAC.  The CRAC is in the position to review individual practices in case there are complaints or bad practice allegations.

    The CRAC is undergoing registration procedures for the full adoption of International Auditing Standards in Macau, which will include the introduction of International Standards on Quality Control.  The firm is preparing appropriately for compliance with the new standards.


    Transparency Report

    There is no transparency reporting requirement.

    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292

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