What are some factors that need to be considered when doing the annual audit work in China?

1) Bank statements: The balance on the bank book needs to be the same as that stated in the bank statement.

2) Expense report: Audit fees, salaries, rentals, utilities, FESCO fees and any other expenses need to be properly accrued with contracts or agreements as supporting documents.

3) Taxable income: Representative offices must pay corporate income tax on their taxable income, as well as sales and VAT, and will be required to assess corporate income tax.