What is the framework of audit in China?

What kinds of bank accounts can an enterprise open?

a) RMB Basic Deposit Account This account is used for receipts of revenue and payments of expenditure. Petty cash can also be withdrawn from this account. According to the central bank’s rules, only one basic account is allowed to open for each company. b) RMB Ordinary Bank Account This account is can be used for […]

What are the responsibilities of cashier?

a)Deal with petty cash and bank payments and deposits according to the related regulations, b)Maintain petty cash and bank books, c)Ensure the security and integrity of petty cash and all kinds of securities, d)Handle foreign exchange affairs.

What is the framework of audit in China?

How to set up accounts?

a) Set up the structure of account codes b) Set account codes and names c) Set the attributes of accounts d) Define the nature of accounts e) Categorize accounts

What are the basic principles of setting up accounts?

a) All accounts should be set up according to the Accounting Law of the People’s Republic ofChina. b) Accounts should reflect all economic activities of the company and at the same time can provide all accounting information required by the management. c) The setup of accounts should take the internal control into account and can […]

What is the framework of audit in China?

What are the responsibilities of a chief accountant?

Duties of a chief accountant generally comprise following: a)Coach junior accountants, b)Prepare corporate finance system, c)Draft and reviewing contracts, d)Participate in operation decision making, e)Report financial status to the management of the company f)Review financial statements, g)Provide training to accountants, h)Review performance of junior accountants.

How many positions should be established in accounting department?

Positions should be established depending on the scale and quantity of transactions of the company. For large companies, there generally are a chief accountant, a cashier, and accountants in charge of fixed assets, inventories, salaries and wages, costs, revenue and profit, treasury, etc. For small companies, positions can be reduced and combined.

What is the framework of audit in China?

What is role of the Accounting Law of the PRC?

The Accounting Law of the PRC (revised on 1 July 2000) has highest authority on accounting sector in China. It sets out general accounting principles for all enterprises, including the nature and role of accounting and basic principles. It empowers the Ministry of Finance of PRC to administer accounting affairs and to establish uniform accounting regulations […]

What are the major differences between PRC accounting system and those in other countries?

In establishing your company’s accounting structure, one of the first tasks is to identify and to reconcile the differences in accounting practices used by your parent company and the rules in China. The PRC does not exactly follow international accounting policies and guidelines, although it is moving on this direction and so far, many of the […]

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What is Chinese Accounting Standards (CAS)?

The Ministry of Finance (“MOF”) has been for a long time working to develop a set of Chinese Accounting Standards that are largely in line with International Financial Reporting Standards (“IFRS”). The MOF issued its first Standard in 1997. To date, 17 standards have been adopted and others are still under preparation. A complete list […]

How is the Accounting System for Business Enterprises of PRC prepared?

In January 2001, the Ministry of Finance (“MOF”) adopted a comprehensive Accounting System for Business Enterprises (“the System”). The System is based, partially, on the experience of the MOF in implementing the Accounting System for Joint Stock Limited Enterprises and, partially, on the existing individual Chinese Accounting Standards (“CAS”) issued over the past few years.