Accounting and audit in China

Professionally made bookkeeping and accounting in China are necessary as companies must submit the financial report and pay tax monthly. Foreign-owned enterprises are especially carefully monitored by the government authorities, and any omissions or mistakes in accounting material can lead to an extra tax, fines and other penalties. It is particularly important for foreign-owned companies to make sure their bookkeeping is in compliance with the Chinese laws and Chinese generally accepted accounting principles (China GAAP) as such companies are under strict monitoring by the local government.

Annual audit

Every company in China must have its bookkeeping and financial statements audited by an independent auditor.