After the acquisition of a Japanese company by a Chinese company, the Japanese subsidiary was required to prepare financial statements according to Chinese GAAP. In order to facilitate the audit, it was necessary to understand not only Chinese GAAP but also Japanese GAAP and taxation, so it was necessary to have a function to support the Japanese side in conducting audit.
・Our Chinese and Japanese CPAs in one team worked closely to complete the audit.
・Upon completion of the audit, Chinese CPA issued an audit report to the Chinese parent company.
・The supports from both our Japan and Chinese offices enabled the early detection of audit problems and prompt response and the audit was completed without delay.
Our China office mainly conducted the audit in Japan with a support of Japanese CPAs.
Company J became a subsidiary of a listed company in China and was included in their consolidated accounts. Company J was required to prepare a financial statement and have audit in accordance with Chinese GAAP. Thus, the company requested us to conduct the audit.
Auditing the financial statements of Japanese subsidiary requires not only an understanding of the Chinese GAAP, but also Japanese accounting practice and taxation. Thus, a Japanese CPA was included in the team to help with obtaining necessary materials, examining of problems, and interpretation of the Japanese tax and accounting standards.
Together with the professionals from both China and Japan, we quickly discovered and resolved issues arising from the audit, ensured speed and quality of cross-border audits, and successfully completed the audit within the duration specified by the client.