As Chinese economy’s growth has slowed down, the hidden problems such as frauds has surfaced from the previous good business performances.
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
US or Japanese SOX requires all subsidiaries to complete “internal control at corporate level” and “internal control that align with financial reports” which effectively prevent and detect significant corporate frauds.
Considering the prevention and detection measures of corporate frauds, we provide our clients with internal control system that have overall effect on Chinese subsidiary, such as operation strategy, company mission statement, functions of boards/supervision committee and separation of responsibility. We also provide internal control system that includes the preparation procedures for general ledger, financial reports, consolidation and disclosure policies that meets the requirement of the Chinese accounting regulations.
Preparing Financial and Accounting Rules and Operation Manual
The Chinese subsidiary’s financial report including accounts receivable, accounts payable, check/banknote/cash, inventory and fix assets should not be managed by a single person, on the contrary, it should be managed by the company. 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.
Implementation of Fraud Prevention Measurement and Monitoring of Internal Control System
In order to make sure the fraud prevention measurement is effective after implementing the internal control system, it is necessary to conduct periodic evaluation by independent internal auditors and fraud detectors from subsidiaries or internal audit team of the headquarter.
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.
