Client Profile
Incorporated in Shanghai Free Trade Zone, the client has about 10 employees and its principal business is the provision of professional recruitment consulting services in China.
Challenges
- Funds transferred from the client’s parent company could not be recognised as injected capital due to a non-compliant cross-border remittance procedure.
- Calculation and filing of social benefit contributions were non-compliant with local HR regulations, presenting a risk of disputes between employees and the company.
- Accounts prepared by the client’s local accountant could not be reconciled with bank statements and supporting documents were insufficient.
Our Engagement
SBA Stone Forest (SBASF) reviewed the client’s accounts for the half year ended 31 December 2014, and provided solutions in the following areas:
- Compliance with PRC GAAP
- Accounting advisory on regulatory compliance for capital injection and shareholders loan in accordance with foreign exchange rules
- Completeness and accuracy of bookkeeping, including supporting documents
- Ensure full compliance with all relevant tax laws
- Preparing the accounts for audit purpose
Results
The client successfully passed the annual statutory audit for 2014 using accounts prepared by SBASF.
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