Chinese Version

AUDIT DOCUMENTS REQUEST LIST

(New Clients)

GENERAL ITEMS:

1. Copy of Articles of Incorporation and Bylaws.
2. Board minutes for the current fiscal year.
3. Copy of insurance policies, if any.
4. Copy of debt agreements, if any.
5. Copy of contracts, lease agreements, purchase agreements, licensing agreements, if any.
6. Copy of related party agreements, if any.
7. Copy of new stock option, stock purchase or other equity plans, if any.
8. Information relating to disclosures required by SFAS 123 – Stock Based Compensation, if any.
9. Copy of litigation, if any.
10. Copy of government agency assessments, audit finding or notices of deficiency, if any.
11. Copy of all development and maintenance / licensing agreements. Copy of amendments/changes to existing agreements made during last year end.
12. Procedure memo outlining flow of transactions. (See attached sample  format)

 

ACCOUNTING ITEMS FOR THE YEAR ENDED DECEMBER 31, LAST YEAR:

1. Working trial balance as of year-end.
2. General ledger balances as of year-end.
3. Bank accounts reconciled to the general ledger for all cash accounts.
4. Have available bank statements and related cancelled checks between January 1st and the date of current month of this year.
5. Have available the checks register for the period under audit through current date.
6. Cash equivalent detail reconciled to the general ledger.
7. Accounts receivable aging detail reconciled to the general ledger.
8. List of uncollectible accounts receivable as of year-end, and detail of accounts written off during the period under audit.
9. Inventory detail by natural categories and final priced inventory   reconciled to the general ledger.
1. Final inventories to include material, labor and overhead.
2. Details of overhead pool including allocations of expenses from other departments such as G&A.
10. Other assets, deposits and investments detail reconciled to the general ledger.
11. Property and equipment summary of beginning asset balances by category, additions and disposal by category and ending balances by category reconciled to the general ledger. (See attached sample format)
1. Detail list of additions and disposals.
2. Depreciation schedules with beginning accumulated depreciation, depreciation for the year reconciled to the general ledger and ending accumulated depreciation balance reconciled to the general ledger.
3. Detail of gain/loss on disposals.
12. Accounts payable aging detail reconciled to the general ledger.
13. Accrued expenses detail reconciled to the general ledger.
1. Accrued compensation.
2. Accrued commissions.
3. Accrued vacation.
4. Any other accrued account.
14. Debt (notes payable, leases, etc.) detail reconciled to the general ledger.
1. Copy of amortization schedules.
2. Summary of compliance with financial covenants required under the agreements.
15. List of shareholders and stock each owns.
16. Reconciliation of payroll per payroll tax returns to payroll expense per general ledger and payroll service for the year.
1. Copy of payroll tax returns for all quarters.
2. Copy of summary page from YTD payroll registers.
17. Analysis of revenues/deferred revenues at 12/31/97 by customer/contract including contract type, start/complete dates.
18. For customers with sales  greater than 10% of total sales for the year:
1. List of customers and sales amount for the year.
2. List of A/R due from customer at the end of the year.
19. For vendors with purchases greater  than 10% of total purchases for the year:
1. List of vendors and purchases amount for the year.
2. List of accounts payable to vendor at end of the year.
20. Copy of G/L YTD account  activity for the following accounts:
1. Legal and accounting
2. Bad debt
3. Interest
4. Payroll
21. Schedule of future payments for operating leases (see attached sample format).
22. Schedule of future payments for capital basis (see attached sample format).

 

Going Public in the U.S.A

 

Stage 1	2 years Financial Statement	Must be audited & certified by an accounting firm
	Profile of the Company
	3 months Bank Statements
Stage 2	Business Plan
	Verification of Deposits
Stage 3	Future Projections	Successive 3 – year Projections
	Election of Board of Directors