19th July 2017
A Foreign Invested Enterprise (FIE) is an enterprise founded in China by foreign, economic organisations or individuals, the registered capital of which is subscribed and contributed by a foreign investor(s).
According to the People’s Republic of China (“PRC”) Company law and relevant legislations, all Foreign Invested Enterprises (“FIEs”) such as Wholly Foreign Owned Enterprises (“WFOEs”) and Joint Ventures (“JVs”) are required to prepare their annual financial statements, including balance sheets, income statements and cash flow statements for their annual PRC statutory audit to the Administration of Industry and Commerce (“AIC”).
In this paper, Dickson Leung, explains the audit process, examining its value and benefits, including the ways in which it can enhance the value of a firm’s financial statements. He points out that an experienced auditor can always identify problems in time and provide practical recommendations to the company in order to avoid risks. Consequently, auditing serves a valuable function other than helping the company in fulfilling a statutory requirement in China.
LehmanBrown International Accountants is a member of MGI Asia with office locations in Beijing, Guangzhou, Hong Kong, Macau, Shanghai, Shenzhen and Tianjin, China. Dickson is a Senior Partner at the firm and also North Asia Circle Leader for MGI in Asia. Dickson has over 24 years China accounting and financial experience and the firm has been a member of MGI Worldwide for 10 years.
For more information contact Dickson at firstname.lastname@example.org or visit LehmanBrown's MGI Worldwide member profile page HERE.
DOWNLOAD FULL PAPER (PDF) HERE
MGI Worldwide is a Top 20 ranked international accounting network with some 5,000 independent auditors, accountants and tax experts in over 250 locations worldwide.