Annual requirement · every foreign-invested entity

The annual audit your China entity has to have

Every foreign-invested company in China closes a financial year and then has to prove it: audited financial statements behind a combined annual report filing due 30 June. We run the audit, issue the report in English, and get you the documents list early enough to actually hit the date.

  • English or bilingual report — written by the auditor who signs it, not a translation agency
  • Filed ahead of 30 June — we work back from the deadline and give you a document date up front
  • PRC GAAP to IFRS reconciliation — every adjusting entry explained and evidenced for your group auditor
  • Fixed fee in writing — agreed before fieldwork, with deliverables listed

Timing

The two dates that actually bind you

Most of the panic we see comes from discovering these dates in May. We plan backwards from them.

31 May — CIT annual settlement

The corporate income tax annual settlement for the previous year is due. It needs the year-end figures settled, not draft.

30 June — combined annual report

The combined annual report filing, which carries the audited financial statements, is due through the national enterprise credit system.

January to April — the working window

Books closed, fieldwork done, adjustments agreed. This is when the audit is cheap and calm. After April it is neither.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Audited financial statements

The full set under PRC GAAP, in English, in Chinese, or bilingual in one bound document.

The auditor’s report

Signed by the engagement partner and carrying our practice licence number. Explains exactly what the opinion covers.

Management letter

Every control weakness and accounting issue we found, ranked by severity, with what to do about it.

GAAP reconciliation schedule

PRC GAAP to your reporting basis, every adjusting entry explained and evidenced.

Filing guidance

What to file, where, and by when — including the combined annual report step.

English fee documentation

Invoice and engagement letter in English, so it can be processed at head office without translation.

Also worth knowing

Three things clients ask for alongside the audit

Profit repatriation support

The audit confirming distributable profit that your bank will want before a dividend leaves China.

CIT settlement and true-up

The annual corporate income tax settlement prepared on the back of the audited figures.

Working with your group auditor

We deal with your group auditor directly, in English, and provide the working papers they ask for.

Indicative fee

What the audit costs, before you have to ask

The statutory audit is priced off a published band table: we take your revenue or your total assets, whichever is larger, and read the fee off the scale. Nothing is priced per enquiry, and the figure is fixed in writing before fieldwork starts.

Priced on whichever is larger — the same basis the Chinese fee scale uses. As a reference point, a trading WFOE turning over RMB 30m sits around ¥9,000 and a smaller service entity around ¥1,700.

Enter your revenue or total assets above and the price appears here.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about the annual audit

Is the statutory audit actually compulsory for a WFOE?

In practice yes. The combined annual report filing carries the audited financial statements, and banks, tax bureaus and parent-company auditors all expect a signed PRC audit. Whether a specific entity is caught depends on its industry and scale, so ask us and we will tell you plainly.

Can the report be issued in English?

Yes. English, Chinese, or bilingual in a single bound document. It is written by the auditor signing the report rather than translated afterwards, and there is no surcharge.

Can you reconcile PRC GAAP to IFRS for our consolidation?

Yes. We prepare a reconciliation from PRC GAAP to your reporting basis with every adjusting entry explained and evidenced, in a format your group auditor can use directly.

What if our books are not in good shape?

That is common and it is not a problem to raise. We tell you what needs rebuilding before the audit starts, quote it separately, and agree it with you before doing the work.

Do you need to visit our office?

Usually not. Most of the work runs on documents and remote access to the accounting system. Where a site visit or an inventory count is genuinely required, it is quoted in advance.

Send us the year end and the deadline.

Tell us the entity type, the financial year and when the filing is due. You will have a written scope, a fixed fee and a document list within one business day.