Annual Statutory Audit Services

An annual statutory audit report is a statutory document issued by a qualified certified public accountant firm after an independent examination of a company's annual financial statements. As a professional agency, we assist companies throughout the entire audit process efficiently and compliantly, ensuring that the audit report is obtained on time and used for annual business report filing, tax final settlement, profit repatriation, and other purposes.

➦ Why Does a Company Need an Annual Audit?

• Annual Business Report Filing: All companies must file their previous year's annual business report between 1 January and 30 June each year. An audit report is not a mandatory attachment for the annual report, but it is typically required in the following scenarios:
  • Profit repatriation, bank loans, participation in tenders, high-tech enterprise certification, etc., for foreign-invested enterprises;
  • Proof of financial independence and mitigation of joint liability risk for single-shareholder companies;
  • Foreign enterprises' representative offices are required by law to submit an audit report on their revenue and expenditure as part of their annual report filing.
• Tax Final Settlement: When completing the annual corporate income tax final settlement (by 31 May each year), the tax authorities may require an audited financial report.
• Profit Repatriation (Foreign-Invested Enterprises): After completing the annual audit and paying all taxes due, profits and dividends can be legally remitted back to the home country.
• Bank Loans and Tenders: Financial institutions and government procurement projects often require an audit report for the most recent financial year.
• Shareholder Protection: An audit report provides an independent verification of the company's financial position, which is particularly important for single-shareholder companies to prove financial independence.

➦ What We Do for You

1. Audit Firm Liaison
- Recommend qualified accounting firms based on the company's size and industry.
- Assist in obtaining quotations and service proposals, and negotiating the audit engagement letter.

2. Pre-Audit Preparation
- Provide a complete audit document checklist (financial statements, accounting vouchers, bank statements, material contracts, tax returns, etc.).
- Assist with a preliminary review of the accounts to identify and correct issues that might affect the audit opinion.

3. Audit Process Follow-Up
- Monitor the audit progress of the accounting firm and coordinate any supplementary information or accounting adjustments.
- Act as a communication bridge between the company and the auditors, explaining special business circumstances.

4. Report Delivery and Use
- Help review the audit report to ensure it meets the requirements of regulatory authorities (e.g., AIC, tax bureau).
- Assist in using the audit report for annual report filing (1 Jan – 30 Jun) and corporate income tax final settlement (by 31 May).
- Provide interpretation and support for profit repatriation, bank loans, tenders, and other specific needs.

Reminder: Companies established in the current year shall file their annual report starting from the following year. Representative offices of foreign enterprises must file their annual report between 1 March and 30 June.

➦ Which Companies Particularly Benefit from Our Services?

• Foreign-Invested Enterprises (WFOE, JV): An audit report is a prerequisite for profit repatriation. We have extensive experience in the entire process.
• Single-Shareholder Limited Liability Companies: Under Article 23(3) of the new Company Law, if a shareholder of a single-shareholder company cannot prove that the company's property is independent of the shareholder's own property, the shareholder shall be jointly liable for the company's debts. Consecutive, properly prepared annual audit reports are crucial evidence for the shareholder to discharge this burden of proof and isolate personal liability.
• Startups and Small Enterprises: They lack established finance and audit procedures and need professional external support.
• Rapidly Growing Companies: As business expands quickly and financial structures become complex, audit coordination becomes more demanding.
• Companies Seeking Financing or M&A: Proactively standardising audit procedures enhances the credibility of financial reports.

➦ Frequently Asked Questions

Q: Must an audit report be issued by an accounting firm?
A: Yes. Only accounting firms holding a practising licence issued by the finance authorities can issue statutory audit reports. We coordinate with such firms to ensure you receive compliant, high-quality audit services.

Q: Do foreign-invested enterprises need to be audited every year?
A: Under current regulations, foreign-invested enterprises are required to file an annual report, but an audit report is not mandatory at the filing stage. However, audit reports are still necessary for profit repatriation, bank loans, tenders, high-tech enterprise certification, group compliance requirements, etc. We provide tailored advice based on your specific needs.

Q: What is the special role of an audit report for a single-shareholder company?
A: If a shareholder of a single-shareholder company cannot prove that the company's property is independent of the shareholder's own property, the shareholder may be held jointly liable for the company's debts. Consecutive, properly prepared annual audit reports are key evidence for the shareholder to discharge this burden of proof and isolate personal liability.

If you need further details about our annual statutory audit agency services or a customised solution, please contact us.

Finerise Consultants can help you

Founded in 2005, Finerise Consultants has been committed to company registration management, offshore company registration, overseas investment services, foreign investment services, financial and tax agency consulting, intellectual property agency and other fields. Provide relevant professional, fast, intimate, thoughtful, safe, cost-effective services, and be your trustworthy partner! Welcome to consult!

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