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Audit Services in China

Audit Services in China

Are you looking for audit services in China? We recommend that you contact one of our specialists and find out about the personalized packages that you can benefit from. In the following lines, you can discover some information about audits in China, specifying that you have the support offered by our company formation agents in China at your fingertips.

What does the legislation say about Chinese audits?

The Company Law of the People’s Republic of China specifies that companies registered in this country must prepare financial accounting reports at the end of each accounting year. This is where financial accounting reports that are audited by an accounting firm, as stipulated by the law, come into question. Our Chinese auditors are at your disposal with clear information in this regard, so that you can better understand the legislation and its provisions. Here are other details in this regard:

  • Cash flow, balance sheets, and income statements are some of the documents that can be part of an audit process in China.
  • Audit reports, tax reconciliation, and annual reporting are procedures required by the law for companies registered in China. Our Chinese auditors can help you in these steps. Also, WOFE in China must respect these rules.

How is the annual audit report prepared in China?

The annual audit of a company is mandatory in China and is part of the annual audit procedures. In ordinary code, the annual audit should be concluded by the end of April, before the tax reconciliation deadline at the end of May. Here are other details in this regard, specifying that, for company formation in China, you can also benefit from audit services in China, to be prepared from this point of view as well:

  • An annual audit report must include various documents such as cash flow, income statements, and balance sheets.
  • Also, our Chinese auditors can prepare some notes, with detailed information about the audit and other financial aspects of the company in question.
  • Normally, dedicated accountants in China are involved in annual audit reports, to meet Chinese financial and accounting standards. We mention that accountants and auditors are accredited by the Chinese Institute of Certified Public Accountants.

However, there are also cases in which taxable income adjustments must be included in the annual report, as is done for companies registered in Shanghai.

Therefore, you can opt for the audit services in China, offered by our experts. When you want to set up a company in China, you can also opt for accounting services dedicated to the type of business carried out.

Calendar year in China and other important aspects

The accounting year for companies in China is the calendar year, respectively 1 January to 31 December. It is good to know that there is also a joint annual inspection, a process that involves tax examination, audited financial statements, foreign exchange examination, and other aspects related to the annual filing process.

Below you can find information about penalties for not submitting the annual reports, as solicited by the local and national authorities:

  • Penalties ranging from CNY 10,000 and CNY 30,000 are imposed if companies fail to submit the annual financial report.
  • If the annual financial reports contain erroneous or fraudulent information, penalties may be between CNY 20,000 and CNY 200,000.

We recommend those interested in Chinese audit to contact one of our experts. We are here if you want more information about company incorporation in China.