Annual Audit and Compliance in China 2016-Preview

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The beginning of the year is invariably a hectic
time for foreign companies in China. Annual
licenses must be renewed, new regulations often
come into effect, and, perhaps most importantly,
firms must prepare their annual audit accounts
from the previous year.
All foreign invested entities
in China are required to
fully comply with the
country’s statutory annual
audit procedures. While
the way in which China’s
audit process functions in
now more closely aligned
withWestern practices than
in the past, there are still
a number of differences
and idiosyncrasies that can quite easily trip up a
foreign firm.
New audit procedures are also commonly
introduced in China. A number of new standards
have been implemented in the last two years
alone, meaning that even companies with long-
established branches here will have to keep
abreast of the latest changes.
In this issue of China Briefing,
we provide a comprehensive
analysis of the various annual
compliance procedures that
foreign-invested enterprises
in China will have to follow,
including wholly-foreign
owned enterprises, joint
ventures, foreign-invested
commercial enterprises, and
representative offices. We
include a step-by-stepguide to these procedures, list
out the annual compliance timeline, detail the latest
changes toChina’s standards, and finally explainwhy
China’s audit should be started as early as possible.
This Month’s Cover Art
心居(2014) by Ye Lan ( 叶阑 )
Oil on canvas, 200X150CM
YELAN Art Gallery
yelan12@hotmail.com| +86 180 1609 3520
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© 2015 Asia Briefing Ltd.
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No liability may be accepted for any
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Readers are strongly advised to seek
professional advice when actively
looking to implement suggestions
made within this publication.
Introduction