Elementary Analysis Of Yuan Sheng Ltd

- With so many multinational corporations Shanghai provides many business opportunities and ways to make money.

I am an advisor to the CFO hired to evaluate the events that occurred during the year ended December 31st, 2017, and to prepare a report on an examination of the financial statements, any issues with Athina’s new management, and any problems that could potentially affect net income and the amount the national chain is due.

The services that were offered in the accounting firm consisted of tax return preparations, basic accounting services, and bookkeeping services. Consulting services were available to assist the community with people developing budgets for personal and businesses purposes.

However, the application of SOX has brought on regulations that public companies must put in place and follow to prohibit these unethical occurrences. One major advantage for associated with SOX is that more thorough audits are being conducted by auditing firms. Audits being conducted more thoroughly will provide accuracy and an increased reliability of financial data. This will affect taxes in a positive way and provide firms with an advantage. Causholli, Chambers, and Payne (2014) suggest that prior to the implementation of SOX in 2002, “an auditor’s opportunity to sell additional non-audit services in the subsequent year, coupled with the client’s willingness to buy services, intensified the economic bond between auditor and client, in turn reducing auditor independence and the quality of financial reporting” (p.681). The regulation of auditor provided non-audit tax services has increased the reliability of tax and financial reporting within companies. Seetharaman, Sun, and Wang (2011) explain that “in a post-Sarbanes-Oxley environment, the benefits of auditor-provided non-audit tax services (NATS) seem to manifest themselves in higher quality tax-related financial statement management assertions” (p. 677).

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

The officers and directors of Riordan have no real authority over their Chinese partners, nor do they have any legal counsel there for support (University of Phoenix, 2009). Riordan should extend their internal legal department to include staff with expertise in Chinese regulatory compliance.

Both approaches can be considered as a long-term performance, which is involved in Confucianism. The suggestion of full disclosure of Chinese and Japanese financial report seems to attribute to the concepts of honesty and truthfulness in the Confucianism. Unfortunately, honesty and truthfulness does not occur in either country. In fact, they do not really accept the economic substance in their accounting systems. They traditionally adhere to the pattern of legal form. In the accounting report, they usually ignore the valuations of fair market. Instead, they focus on the historical costs. However, substance over form is used when there is new accounting issued in China. Additionally there is a hierarchical order, which means that people must consider relations, such as family finances and business transactions exist in Chinese society (Tang, 2000). Confucianism ideals mean that there are no accounting principles and no governmental supervising, but it does not exist in those

Part two, entitled auditor independence, helped create a statutory code of ethics for public accounting firms. New, specific regulations were set up to dissuade ethic violations. A list was created of consulting services that audit companies cannot perform for companies that they audit and senior management conflicts were resolved by not allowing audit firms to audit if a senior manager was a former employee of the audit company. Auditors were required to rotate the companies that they audit every five years and auditors must report to an audit committee. Laws and regulations for accounting firms were encouraged. (Jennings, 2012)

Q1. Why would you choose Renda Certified Public Accountants LLP (Shenzhen Branch) as your employer? What is your expectation with the firm?

Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and assurance services:

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

China’s accession to the WTO in 2001 has helped shape its economy to becoming a more predictable environment for trade and foreign investment. Corporate governance and frameworks for business operations and interactions have improved, providing a much more transparent environment. (Deckers, 2004)

According to Reaf Lawson (Rael Lawson, Jiliang Yang and Hongqi Yuan. Accounting in China: A Long Journey to The Rebirth Of A Profession. 2009), the current framework for accounting in China consists of four levels. The first level consists of the accounting law which was issued by the National People’s Congress in 1985 and last revised in 1999; the second level includes administrative regulations distributed

Despite the high levels of corruption, investors do not seem to be deterred from doing business in China. Some believe that corruption acts as an effective “grease” to speed up the many layers of bureaucratic inefficiencies for starting of businesses in China (Meon, Weill, 2008). Furthermore, the policy of regional competition in China has caused the competitive lowering of bribes in order to attract businessmen with a lower “unavoidable cost” of doing business in the region. (Li, Peng 2001). Another reason would be the high predictability of corrupt practices in China (Campos, Lien, Pradhan, 2001), to the extent where investors factor “bribes and gifts” as a portion of their budget. Hence it does not appear as a deterrent to businesses when they enter the market (Dickson, 2008). Corruption due to “Guanxi” is also explained to enhance efficiency, because “Guanxi” contributes to high levels of public trust that encourages business ventures due to the availability of valuable information that reduces uncertainty (Li, Wu

With the development of economic globalization and capital markets, accounting standards based on a national system cannot satisfy the needs of users whose decisions are increasingly international. Therefore harmonization of accounting standards has become an inevitable choice for many countries. The Chinese government has introduced four sets of accounting standards and efforts continue to be made to bring its domestic accounting standards in line with international accounting standards, as a result of which numerous benefits have been brought about by the harmonization of accounting