As business operations become more complex, fraud, misconduct, and weaknesses in internal controls may create significant financial and operational risks for companies in China.
We provide our clients with fraud investigation service followed by implementation of fraud prevention policy, creating rules and manuals for employees, and continuous monitoring services.
Fraud Investigation
Our company categorize frauds in China based on their seriousness such as “Small”, “Medium”, “Large” and adapt our fraud investigation measures respectively. If necessary, we also seek outside professionals.
✔︎ Small:
✔︎ Medium:
✔︎ Large:
Setting up of Internal Control Procedure
Companies may be required to establish and maintain effective internal controls under applicable laws, regulatory requirements, group policies, or governance frameworks. These controls help prevent and detect fraud, improve the reliability of financial reporting, and clarify management responsibilities.
We help businesses operating in China design and improve internal control systems covering operational policies, governance structures, segregation of duties, accounting procedures, financial reporting, consolidation, and disclosure. Our recommendations are developed with consideration of applicable Chinese regulations and each client’s organizational structure and risk profile.
Preparing Financial and Accounting Rules and Operation Manual
Key financial processes—including accounts receivable, accounts payable, cash and bank transactions, inventory, and fixed assets—should not depend on a single individual. Clearly defined responsibilities, approval procedures, and appropriate segregation of duties are essential to effective risk management. In China where a company’s head account turnover is high, it is a vital part of risk management to prepare the financial accounting rules and operation manuals. This is important not only from internal control perspective, but rather meaningful for stabilizing a company’s operation.
We help companies to complete the first step of their risk management by setting up the operation manuals.
Fraud Prevention and Internal Control Monitoring
In order to make sure the fraud prevention measurement is effective after implementing the internal control system, periodic evaluations by independent reviewers, internal auditors, or other qualified professionals are important for confirming that fraud prevention measures and internal controls continue to operate effectively.
We have experienced audit staffs with multi-linguistic skills that can be complementary to internal audit and fraud detection,and provide full support with high efficiency to improve operations.
