Risk management

international control compliance service

The Sarbanes-Oxley Act issued by the United States on 30 July 2002 brought up the requirements for public companies to implement internal control and risk management compliance projects. The Clause 404 (“Sox 404”) request the management of public companies to issue annual statement on the effectiveness of internal controls related to financial reporting and offer auditor's verification report on accuracy of management assessment and effectiveness of internal controls related to financial reporting.

After years of discussion and assessment, Basic Standards of Internal Controls for Enterprises (“Basic Standards”) was promulgated jointly by Ministry of Finance, CSRC, State Administration of Audit, CBRC and CIRC on 28 June 2008. The objective of the Basic Standards is to reasonably ensure the eligibility and compliance of business operation, the security and completeness of assets, the accuracy, accountability and completeness of financial reporting and other relevant information.

The Basic Standards are consistent with Sox 404 in terms of the establishment of internal control framework, principles in design and implementation of internal control and risk management. Our dedicated team has been involved various implementation projects of internal controls and risk management and has kept leading position among domestic peers offering similar services. Our internal control compliance project usually comprises of following phases:
  • Phase 1: planning and scoping
  • Phase 2: documentation of internal control and risk management projects
  • Phase 3: testing and improvement
  • Phase 4: internal audit

Along with increasing awareness of internal controls, more and more clients hope to outsource internal audit function and expect a more independent review on risks inherent in company’s business. In order to tackle this expectation, our dedicated team can be engaged in internal audit projects, perform review on scoped business cycles or information and deliver internal audit report to the management of clients.

We will adopt internationally well-established work procedures based on compliance requirements and project scoping of internal audit projects to ensure the quality of the service. We will offer realistic recommendation for management's further adjustment or improvement in addition to reporting to management our internal audit findings. We hope this will bring our valued clients true value-added experience.

performance improvement
We have accumulated abundant financial management procedure experience through a series of internal control and risk management projects. We can offer performance improvement service to our clients based on our existing practical experience, which usually includes following phases:
  • Understanding: to understand existing procedures through inquiry, observation and examination.
  • Gap analysis: to analyse the gap between current situation and best practice based on our industry practical experience.
  • Recommendation: to raise realistic recommendations consistent with client's business and agree with clients.
  • Document revision: to advise or assist clients to revise procedure manuals to implement recommendations.
  • Testing: to test the execution of improved procedures after trial period, assess the effect of performance improvement and revise further accordingly.

Contact Us
Floor 13, Asia Mansion, 650
Hankou Road, Huangpu District,
Tel:+86(21)6135 6268
Fax:+86(21)6135 6267