Abstract Public accountancy in Hong Kong may be divided into three major parts, auditing, taxation and costing. Costing is a special feature of public accountancy in Hong Kong. It is associated with exports under the Commonwealth Preference scheme. Auditing in Hong Kong may be either compulsory or voluntary. The proper title of a public accountant engaged in company auditing is the "authorized auditor," an official list is kept by the companies' registry and published yearly in the government's December gazette. The official accounting body in Hong Kong is the Authorized Auditors Board. The application of statistical techniques, sampling, probability control, etc., to auditing has not received enough attention, but the popular method of direct confirmation used in the United States is also widely accepted in Hong Kong. Income tax supplies the largest portion of the total Hong Kong revenue, although the rate is quite low. The standard rate of tax is now 12.5%, a rate unchanged since 1951. Profits tax is charged on every individual, partnership or corporation carrying on business in Hong Kong.

Abstract In the article, the author shares his views on price level adjustments. The problems with pricing, and financial statements is discussed. According to the author, the application of price indices is limited by two conditions, the speed of inflation or deflation, and the differentiation between a general price index and individual commodity price indices. In China, a series of changes of currencies, Fapi, Golden Yuan Notes, Taiwan Dollars, etc. create much problem. By statutes, not only the assets and liabilities, but the capital is also required to be revalued. Chinese communists had applied rice prices to the revaluation of assets and liabilities before they occupied mainland China. Afterwards the price index was compiled and applied. The Government moved from the mainland to this island in 1949, and a currency reform was effected in June for the purpose of strengthening national powers. By statute, current assets and liabilities were converted into the new currency on a fixed rate, and fixed assets and capital revalued at the end of that year.