Foreign-funded enterprises also need to find an accounting firm to issue an audit report. According to Article 60 of the "Implementing Rules of the Law of the People's Republic of China and Foreign-Funded Enterprises", foreign-funded enterprises shall conduct independent accounting. The annual accounting statements and liquidation accounting statements of foreign-funded enterprises shall be prepared in accordance with the regulations of China's financial and taxation authorities. If accounting statements are prepared in foreign currency, accounting statements in which the foreign currency is converted into RMB shall be prepared and reported at the same time. Foreign-funded enterprises must hire Chinese certified public accountants to verify their annual accounting statements and liquidation accounting statements and issue reports.

However, the audit report is not required every year and should be done as needed.

When is an audit report required:

1. Audit of the company's annual accounting statements, which is carried out in accordance with the requirements of the "Company Law". Both limited liability companies and joint stock companies need to be audited Generally, in the annual industrial and commercial inspection and the annual tax review of foreign investment, the audit report of the previous year is required as a necessary supporting document. Audits are usually conducted between January and May each year.

Other uses for auditing corporate accounting statements: annual industrial and commercial inspections, bank loans, company liquidation, shareholders understanding operating conditions, acquisitions, corporate restructuring, mergers, etc.

2. Special audit, which is an audit based on the law or an in-depth investigation of designated issues required by investors, or a tax health self-examination, etc., that is, internal audit.

The audit content includes the authenticity, legality, efficiency, etc. of assets, liabilities, net assets and related economic activities, as well as the completion of term goals. A sound financial reporting system is a key that cannot be ignored in the process of economic development.

Financial audit report:

The financial audit report is issued by a certified public accountant of an accounting firm with audit qualifications on the basic work of corporate accounting, that is, measurement, accounting, accounting, and accounting files. The report on matters such as whether the accounting work complies with the accounting system and whether the enterprise's internal control system is sound is an objective evaluation made after a comprehensive review of financial revenue and expenditure, operating results and economic activities.

It is divided into four categories: audit reports with unqualified opinions; audit reports with qualified opinions; audit reports with negative opinions; audit reports that cannot (reject) express opinions.

The audit report should include the following elements:

(1) title; (2) addressee; (3) introductory paragraph; (4) management's responsibility for the financial statements ; (5) Responsibility section of the certified public accountant; (6) Audit opinion section; (7) Signature and seal of the certified public accountant; (8) Name, address and seal of the accounting firm; (9) Report date.