China joint venture auditing refer to the state audit institutions and social audit organizations to the companies, enterprises or other economic organizations of our country, to examine and notarize the economic activities and financial revenues and expenditures of joint ventures jointly organized by foreign companies, enterprises or other economic organizations in China.
With the further deepening of China's opening to the outside world, there are more and more Chinese-foreign joint ventures. The establishment and strengthening of joint venture audit supervision are necessary measures to ensure the healthy development of the joint venture.
Form of the audit of Chinese-foreign joint ventures
Since Chinese-foreign joint ventures are jointly owned by Chinese-foreign joint ventures, the property has all the characteristics of a multi-component, therefore, the audit of Chinese-foreign joint ventures can be divided into two forms:
(1) The audit of state owned property joint ventures by state organs.
(2) The enterprise hires the accountant of the accounting firm to conduct the audit.
Main contents of the audit of Chinese-foreign joint ventures
1. Capital verification
To examine and notarize the authenticity, correctness, legality and compliance of capital contribution, proportion of contribution, payment term of contribution and assignment of capital contribution, etc. And issue a capital verification report, whether the joint venture shall be examined and liquidated in accordance with the legal procedures of the joint venture shall be examined by the government auditor. Whether the capital verification report issued by its social audit is true and fair and reliable can be reviewed.
2. Annual accounting statement audit
To supervise and verify the annual balance sheet and profit statement of the joint venture and the authenticity, correctness, completeness and legitimacy of the items such as assets, liabilities, sales income, cost of goods sold, taxable income, profit and profit distribution, etc.
3. Audit of liquidation accounting statements
When the joint venture is dissolved for various reasons, it must liquidate the prescribed procedures and liquidate its accounting statements, which shall be verified and certified by certified public accountants in China. The reasonableness of the disposal of the remaining property and the audit opinion of the amount of the income tax shall be paid to the financial situation and the problems found in the liquidation of the enterprise.
The audit personnel of the state audit institutions is also the main contents of the law and discipline audit of Chinese-foreign joint ventures, and the legitimate rights and interests of all parties are upheld on the basis of the audit of the law.
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