What should I do before the auditors arrive?

Conducting a sound internal review prior to your annual audit will improve the efficiency of your audit and save both you and your auditors’ valuable time. a) Make sure your bank reconciliations are completed for all bank accounts. b) There should be no significant discrepancies in your petty cash c) Conduct a complete check of accounts receivables and […]

How can I find a good audit firm in China?

Most small to medium size FIEs prefer to their accounts being audited by an accounting firm with international standards expertise with a reasonable fee. In addition, in view of the complexity of China tax regulations, foreign investors should keep themselves being updated with any new rules and the modifications to existing regulations. Your auditor should […]

Is annual audit required by law?

Yes. Under current legislation, all Foreign Invested Enterprises (“FIE”) such as Wholly Foreign Owned Enterprises (“WFOE”), Joint Ventures (“JV”), and Representative Offices (“RO”), are required to be audited on an annual basis. This statutory requirement has to be met prior to business license renewal every year. The deadline for the filing of annual audits is […]

What are the differences between audit opinions?

The audit opinion is part of the auditor’s report expressing an opinion on the extent to which the financial statements are materially misstated. The fact that it is an opinion, instead of a certification, is meant to inform financial statement users that the auditor is providing reasonable assurance, rather than a complete assurance, as to […]

What contents should be included in an audit report in China?

a) Auditor’s opinion b) Audited financial statements(balance sheet, income statement, cash flow statement, profit distribution statement, employee insurance details, tax payment details and foreign exchange statement) c) Explanation to each item on the audit report

What is the framework of audit in China?

There are four categories principles governing the audit professionals. a)       General principles b)       Working principles c)       Reporting principles d)       Audit report processing principles

What is the general situation of the audit profession in China?

To facilitate state reform and open policy, the 1982 Constitution of the People’s Republic of China set up the foundation of auditing profession in China. Over the past decades, auditors have played a very important role in maintaining state financial and economic order and strengthening the construction of uncorrupted governments. The promulgation of the Audit Law in 1994 […]