According to the Implementation Regulations of the Audit Law of the People's Republic of China and the State, auditing is the audit agency's independent inspection of the accounting vouchers, accounting books, accounting statements and other matters related to fiscal revenue and expenditure, and financial revenue and expenditure of the audited unit in accordance with the law. Relevant information and assets, supervise fiscal revenue and expenditure, financial revenue and expenditure are true, legal and efficient.
General company financial audits have the following three audit methods:
1) Operational audit: Review the operating procedures and methods of the unit organization to evaluate its efficiency and effectiveness;
2) Compliance audit: Evaluate whether the unit organization complies with the procedures, codes or regulations set by a higher authority;
3) Financial statement audit: Usually evaluate the financial statements of the enterprise or group Whether it is prepared in accordance with generally accepted accounting principles is generally done by an independent accountant.
Usually every enterprise or company needs to make an audit report before the annual inspection:
1) One-person limited liability company (i.e. natural person sole proprietorship or private limited liability company);?
p>2) Foreign-funded enterprises?
3) Listed joint-stock companies;?
4) Companies engaged in finance, securities, and futures;?
5) Enterprises with long-term debt or losses?
6) Companies engaged in insurance, venture capital, capital verification, evaluation, guarantee, real estate brokerage, immigration agency, expatriate labor agency, and enterprise registration agent ;?
7) Companies whose registered capital is not fully paid in installments;?
8) Companies that have committed illegal acts of falsely reporting registered capital, making false capital contributions, or evading capital contributions within three years.
Or any major economic behavior of an enterprise must be audited:?
Bankruptcy and liquidation audit?; M&A and reorganization audit; restructuring audit; other special audits: net assets audit, income audit , cost audit, project audit, due diligence