LehmanBrown understands that special purpose
audits may be called for in certain situations where there is
confusion over accountancy practices in China. China’s accounting
rules are still in their development stages and consequently many
foreign companies may be unsure whether or not they are recording
their accounts in the right manner.
Alternatively, given the overall lack of corporate
transparency in China, foreign investors may be concerned about
fraud or taxation compliance. A special purpose audit may be required
in order to bring a Chinese entity into compliance with a company’s
group policies or quite simply to evaluate the overall operating
efficiency of an organisation.
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