How Do I Prepare a U.S. Audit Report for a Chinese Company?

Preparing an audit report to a Chinese company involves translation and verification.

As China's economy continues to accelerate, an increasing amount of businesses and investors are conducting business with China, either by signing contracts with Chinese businesses or starting a new business. Often, a business transaction will involve presenting an audit report to the Chinese company or government bureau. Although not a legal requirement, it is important that you abide by some basic procedures when presenting a U.S. audit report for a Chinese company.

Instructions

1. Obtain a verification of your audit reports before a notary public in the United States. The notary public will verify that the audit report is indeed a report for your company. Proof of your identity is required for this step, as well as your company's certificate of incorporation.

2. Obtain the services of a reputable translation service. Because your documents will involve a lot of business terms and phrases, it is important that you find a translation service that has experience in translating financial documents. Prices of such services will vary depending on the size and experience of the translation firm.

3. Authenticate your documents at the nearest embassy or consulate of China in the United States. A copy of your passport, certificates of incorporation and the original documents with their translations are required. As of 2010, the embassy will charge a fee of $40 and will verify that your documents are official and that the translation is adequate.

4. Hire an auditing firm in China, which will verify that you audit report has been appropriately financially processed. This process costs 350 RMB (equivalent to $50 in September 2010) and typically takes two days.

References

• Doing Business: Starting a business in China
• Consulate General of China in San Francisco: Notarization & Authentication