Top 10 Best Chinese Accountants January 2023

The lack of such a framework also rendered the formulation of other regulations, such as the national Securities Laws and Listing Regulations, more difficult and time consuming. At the same time, it is not unexpected to find numerous deficiencies in jurisdictions that are being inspected for the first time. And the potential deficiencies identified  by PCAOB staff at the firms in mainland China and Hong Kong are consistent with the types and number of findings the PCAOB has encountered in other first-time inspections around the world. Our experienced practitioners work closely with our peers in China to meet our clients’ tax, accounting, and transaction advisory needs.
Chinese accounting standards are unique because they originated in a socialist period in which the state was the sole owner of industry. Therefore, unlike Western accounting standards, they were less a tool of profit and loss, but an inventory of assets 学生报税 available to a company. In contrast to a Western balance sheet, Chinese accounting standards did not include an accounting of the debts that a corporation holds, and were less suitable for management control than for accounting for tax purposes.

Prior studies have demonstrated the influence of mainstream positivist/functionalist research on accounting doctoral education. This paper joins recent self-reflections on doctoral education (Pelger & Grottke, 2015; Prasad, 2015; Raineri, 2013, 2015) that bring the analysis back to the doctoral program itself. For issuers, the tension between China and the US has sparked uncertainty, especially when the US remains their first choice of listing venue. Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options!
We are a Chinese accounting firm with extensive knowledge of US tax laws, complex tax codes and new tax regulations. We specialize in working with Chinese companies of all sizes and Chinese entrepreneurs  who are looking to set up corporations in the US. Scheng Group USA established its US headquarters in Dallas back in 2020, and is committed to providing professional and reliable accounting, taxation and auditing services for Chinese individuals in the United States as well as Chinese and American companies. Customers in the United States are mainly centered in Texas, and radiating to other states. “The PCAOB has sole discretion to select the firms, audit engagements and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities.
The content herein is intended for a more sophisticated investor audience, and may not be suitable for retail investors or general public. Reliance should not be placed on the views and information herein when taking individual investment and/or strategic decisions. Investment strategies discussed in this website may not be available in every jurisdiction or may only be available only in institutional vehicles.

The current rules of the game fail to address capital raising by foreign issuers in premium markets sufficient to protect investors. In particular, an inquiry remains over how to heighten the scrutiny of US issuers based in China where it prevents full financial transparency. The PCAOB is authorized to oversee the audits of all US-listed public companies in order to protect the public interest by promoting informative, accurate and independent audit reports. However, it faces hurdles given significant legal obstacles preventing it from obtaining the information necessary in an inspection.
Public Company Accounting Oversight Board to examine the audits of firms whose shares trade in America, citing national security concerns. Several prominent Chinese technology companies like Alibaba and JD.com have established secondary listings in Hong Kong, and some institutional investors have begun to convert their U.S. holdings into HK shares. But retail investors could end up as collateral damage in a wholesale delisting, particularly if companies are taken private at disadvantageous terms. It remains certain that Chinese firms like Alibaba will still face delisting risks in the future, even though they may conform to the US's listing standards now. But they have grown rapidly, by hiring young new accountants and acquiring local firms. Beyond the big cities like Beijing and Shanghai, quality can be “patchy”, says Mark Webster of Business Development Asia, an advisory firm.

Since the arrival of the Sarbanes-Oxley Act in 2002, the PCAOB is required to undertake annual inspections of accounting firms that audit more than 100 SEC-registered companies a year, triennial inspections of firms that audit 100 or fewer firms a year. According to PCAOB rules, if a U.S. auditor signs off on the financial reports of a foreign-based company, it has to perform most of the audit itself and oversee the work of local affiliates. The Public Company Accounting Oversight Board , created by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies, was limited in its ability to inspect audits of China-based issuers conducted by accounting firms located in China and Hong Kong. Though the PCAOB signed an MOU with the CSRC and the Chinese Ministry of Finance in 2013 to address the issue, Chinese authorities continued to cite state secrecy and national security laws to restrict US regulators from inspecting audit work and conducting investigations.
We provide regulatory agencies, lawyers, trustees, financial institutions, insurance companies and business owners a wide range of services to meet the challenges of today’s business environment. A U.S. government official, who was not authorized to speak to reporters by name, said that inspections would begin in Hong Kong because of protocols related to the coronavirus, but that the agreement also gave the United States the ability to carry out inspections in mainland China. Wall Street leaders have been strongly opposed to removing China-based companies, which account for $1.3 trillion of market value. The exclusion of big Chinese companies like Alibaba, Baidu and Yum China from the United States, which has the world’s largest markets for attracting global investment, also would have been a significant setback for China. The agreement is a potentially big step toward resolving a conflict that had appeared likely to force some of China’s largest companies to leave American stock exchanges starting in 2024. The agreement could prevent Chinese companies from having to depart U.S. stock exchanges, but U.S. officials remain wary of whether China will fulfill its terms.

Many of the companies that listed over the counter were reverse mergers where a Chinese company is merged into a public shell company, often a company that’s already gone through bankruptcy. And then that company is immediately registered with the SEC without having to go through audits or our comments by the SEC staff. Reverse merger is largely ended a few years back when the NASDAQ and the New York Stock Exchange both put restrictions on the ability of companies that do reverse mergers to upgrade their listings to NASDAQ or New York Stock Exchange listings. China’s “long-standing obstinacy” on the auditing issue gave Washington’s animosity toward Beijing years to fester, Mark says. It only got worse during former President Donald Trump’s anti-China administration and after high-profile scandals at U.S.-listed Chinese firms like Luckin Coffee, where executives and staff fabricated hundreds of millions of dollars in sales. Capitol Hill has become so opposed to the Chinese Communist Party that both houses of U.S.
A Commission-Identified Issuer must submit electronically to the SEC documentation that establishes that it is not “owned” or “controlled” by a governmental entity in the foreign jurisdiction. The SEC’s view is that the terms “owned or controlled” and “owned” and “controlling financial interest” in the HFCAA are intended to refer to a person’s or governmental entity’s ability to “control” the registrant as that term is used in the U.S. She also covers all aspects of financial regulation across Asia and has a particular interest in corporate governance and ESG. The options available to affected companies are a take-private, or relisting on another venue.
On June 21, 2016, Ruihua was publicly condemned by the Association of Interbank Dealers and was ordered to suspend its related business for one year. On July 28, 2016, Ruihua received a warning letter from the share transfer system due to irregularities in its audit report. On February 14, 2017, the relevant departments of the Ministry of Finance and the China Securities Regulatory Commission jointly issued a notice to temporarily revoke the qualification of Ruihua to undertake new securities business and rectify the deadline. After a decades long impasse that led to a threat to kick about 200 Chinese firms off New York stock exchanges, US inspectors may soon get their first look under the hood of some of China’s largest corporations, if all goes as planned. Until 1994, China lacked a regulatory framework on which accounting and auditing standards could be set since the country’s first national Companies Laws were not effective until 1 July 1994.

"In other words, exchanging noncompliance with SOX and HFCAA for retaining an accounting firm in violation of PCAOB standards is simply trading one bad outcome for another and does not adequately address the underlying problem." Meanwhile, since 2019, China has amended various domestic laws in the areas of securities, data security, personal-information protection, overseas offerings of securities and listing, and related confidentiality and archive-administration issues. The PCAOB has sole discretion to select the firms, audit engagements, and potential violations it inspects and investigates—without consultation with, or input from, PRC authorities. The PCAOB has sole discretion to select the firms, audit engagements, and potential violations it inspects and investigates with neither consultation with, nor input from, PRC authorities. The old standards are neither broad nor flexible enough to  allow discussion or maneuverability on particular subjects.
For jurisdictions other than the PRC and Hong Kong, the PCAOB has been able to address foreign regulators’ concerns in a way that is compatible with its core mission. In 2013, the PCAOB entered into a Memorandum of Understanding with PRC authorities that was intended to establish a framework for future cooperation. Despite the MOU, the PCAOB has repeatedly stated that it has received insufficient cooperation to conduct full inspections and investigations of audit firms in the PRC and Hong Kong. All the new economy companies are privately held companies where the old economy companies like steel and oil tend to still be state controlled companies. But as the private companies have rose they were unable to access capital in China.