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Article http://dx.doi.org/10.26855/jhass.2026.09.001

The Role of Professional Audit Judgment in the Verification of Financial Statements of Hong Kong-Listed Companies

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Handerson Kwan Cheong Luk

California State University, Monterey Bay (CSUMB), Seaside, CA 93955-8001, USA.

*Corresponding author: Handerson Kwan Cheong Luk

Published: September 9,2026

Abstract

A financial statement audit is required for Hong Kong-listed companies. This process enables auditors to verify the accuracy of evidence, identify issues in management’s accounting practices, review accounting estimates and assess their reasonableness, and avoid rigid adherence to standardized procedures. With many overseas and various businesses, there are numerous complex items within the financial statements, such as foreign-currency transactions, impairment losses, fair-value adjustments, revenue recognition, and related-party transactions, all of which demand substantial professional judgment in audit planning and evidence collection. This paper studies the functions of professional audit judgment in the verification processes described above, introduces the main applications, identifies existing deficiencies, and proposes countermeasures addressing the risks of assessment, evidence evaluation, expert participation, audit technology, professional scepticism, and quality control. Professional judgment should be based on facts, experience and documentation; it is not mere guesswork; otherwise, it would lack the objectivity and reliability required for auditing.

Keywords

Professional audit judgment; Hong Kong-listed companies; financial statement verification; audit evidence; professional skepticism; audit quality

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How to cite this paper

The Role of Professional Audit Judgment in the Verification of Financial Statements of Hong Kong-Listed Companies

How to cite this paper: Handerson Kwan Cheong Luk. (2026) The Role of Professional Audit Judgment in the Verification of Financial Statements of Hong Kong-Listed Companies. Journal of Humanities, Arts and Social Science, 10(9), 1034-1038.

DOI: http://dx.doi.org/10.26855/jhass.2026.09.001