Financial Advisory & Audit Services

Our experienced accounting advisory experts possess years of knowledge on emerging accounting regulations and a firm understanding of China’s financial climate across different industries.

Risk Advisory

Sarbanes Oxley S404 readiness and compliance

Taking effect in 30 July 2012, the U.S. Sarbanes Oxley Act of 2002, section 404 (S404) was introduced in hopes of strengthening responsibilities of management and improving the confidence of investors, with the regular review and enforcement by SEC and PCAOB.

Our Sarbanes Oxley S404 readiness service helps your organization solve its internal control issues while ensuring S404 compliance. Our team of experienced personnel, reliably equipped with an accounting background with audit experience, are committed to providing professional advice when needed. Our work systematically undergoes examination and approval by external auditors, thus guaranteeing adherence with international standards of excellence.

Our services include:
  • Evaluating your current processes, systems and operations to determine the gap
  • Conducting S404 process and control design and operating effectiveness testing
  • Developing action plans to optimize controls through standardization, centralization and automation
  • Working with you to advise on the design and implementation of policies and procedures
  • Performing post-implementation system review, annual managerial testing and more.

J-Sox readiness and compliance

The Financial Instruments and Exchange Law passed by the Japanese Congress on 7 June 2006 requires all public companies listed on the Japan Stock Exchange to assess its internal controls over financial reporting annually.

This is considered the Japanese version of Sarbanes-Oxley (SOX), also known as J-SOX

Our services include:
  • J-SOX compliance project planning and management
  • Testing and evaluating the effectiveness of internal controls to understand your current state
  • Designing and documentation to mitigate risks identified
  • Working with you on implementation of policies and procedures/controls
  • Performing subsequent review and/or management testing

Basic Standard of Enterprise Internal Controls advisory and implementation assistance

On 28 June 2008, the Ministry of Finance (MOF), the China Securities Regulatory Commission (CSRC), the National Audit Office (NAO), the China Banking Regulatory Commission (CBRC), and the China Insurance Regulatory Commission (CIRC) jointly released a circular on the release of The Basic Standard for Enterprise Internal Control (The Basic Standard) dated 22 May 2008 (企业内部控制基本规范). On 26 April 2010, relevant government regulatory agencies further issued the Application Guidelines for Enterprise Internal Control, Guidelines for Assessment of Enterprise Internal Control and Guidelines for Audit of Enterprise Internal Control (collectively the “Implementation Guidelines”) as the detailed guidelines for Implementing The Basic Standard. All listed companies established within the territory of mainland China will be required to comply with The Basic Standard, and non-listed large and medium-sized Chinese enterprises are encouraged to adopt The Basic Standard.

The Basic Standard outlines the regulatory requirements for Chinese enterprises to establish, evaluate and assess effectiveness of their internal controls and for accounting firms to audit the effectiveness of Chinese enterprises’ internal controls.

Our services include:
  • Evaluating your current processes, systems and operations to determine the gap
  • Conducting process and control design and operating effectiveness testing
  • Developing action plans to optimize controls through standardization, centralization and automation
  • Working with you to advise on the design and implementation of policies and procedures
  • Performing post-implementation system review, and more.

Standard Operating Procedures (SOP) design and implementation

What’s the secret to keeping operations under control and employees consistently doing the right things? A good system or standard operating procedure (SOP)!

A good SOP project will also accomplish the following objectives:

  • Create an effective, efficient and fully integrated operational and control environment within the company and enhance local staff awareness of risk management concepts;
  • A formal standard operating procedures (SOP) for identified key functions which contain key financial controls to promote efficiency of operations, accuracy of financial reporting and compliance of Company policies;
  • A detailed SOP implementation plan that will facilitate company management’s efforts to launch, manage, complete, and follow-up on the results of the project
Our services include:
  • Diagnostic review of existing procedures with gap analysis and recommendation for improvements
  • Development of SOP
  • Roll-out and subsequent follow-up/review and testing

Internal Controls review

A sound internal control system facilitates corporate governance and helps improve operational efficiency. Sapience Partners assists in evaluating internal control systems, systematically monitoring operational processes to ensure quality financial reporting and compliance. We also provide insights on your organization’s control processes and performance improvement opportunities.

Our services include:
  • Implementation, documentation, evaluation, improvement and maintenance of internal control systems
  • Examining a wide range of internal control issues, including controls over financial reporting, business and compliance risks

Internal audit

Ideally, a robust, COSO-aligned internal audit framework should incorporate compliance, controls, risk management, and improve effectiveness on top of identifying potential problem and improvement areas. Our internal audit offers all the above, on top of customizable support as both an outsourced and a co-sourced service model. We provide your organization with comprehensive guidance throughout the whole audit process while undertaking internal audit responsibilities, such as analyzing risks and multi-year planning.

Our services include:
  • Internal audit outsourcing and co-sourcing services
  • Setting up of internal audit function
  • Undertaking internal audit risk assessments

Foreign Corrupt Practices Act (FCPA) review

Foreign Corrupt Practices Act (FCPA) review/investigation support

With continuous growth in foreign investment and international business transactions, anti-bribery and corruption laws are also seeing increasingly active enforcement by regulators, like the United States Foreign Corrupt Practices Act (FCPA). We assist organizations in their compliance programs, especially those dealing with government or state-owned enterprises and are therefore more susceptible to these issues.

Our services include:
  • Understanding and analysis of the usage of agents
  • Understanding and analysis of commercial trading conditions with government-owned customers
  • Understanding and analysis of large-scale development projects and joint venture
  • Investigation of direct or indirect transaction with government entities
  • Investigation of target company’s internal control

Fraud investigation

Fraud investigation review support

Regardless of your organization’s size and structure, the risk of fraud is always present and can manifest in varied, complex, and even concealed ways. Sapience Partners assists your organization in the crucial task of updating your corporate fraud risk management strategies and keep increasing fraud risks in check.

Our fraud investigation services will focus on the controls, processes and procedures of a company via:

  • Thorough analysis
  • Substantial testing and gathering of the relevant evidence

Compliance

Review of expenses/invoices

Our team of experience consultants works with our clients’ compliance and accounting teams to review their expense claims practices in an appropriate manner.

Our services include:
  • Risk Assessment & Develop Review Methodology
  • Implement Expenses Compliance Review
  • Assess Readiness of Client’s Review Team (where required)
  • Secondment of staff to be part of the client expenses review team

Anti Bribery Act (ABA) review/audit

Monitoring is a critical component of an effective anti-corruption compliance program.

Compliance programs that are not monitored are generally not very effective. Anti-corruption audits have a powerful deterrent effect.
Monitoring enables a company to understand the effectiveness of its anti-corruption compliance program and where future efforts should focus to minimize risks.

Our services include:
  • Review of policies and procedures
  • Review of the general ledger and accounting system
  • Detailed testing on certain areas (e.g. cash disbursements, third-party agencies, etc)

Distributors’ inventory and sales data integrity check/audit

The integrity of the distributors’ inventory and sales data is the key to our client’s sales and marketing effort.

Our services include:
  • Regular check on the distributors’ inventory system and on-site physical count;
  • Off-site sales data comparison and analysis;
  • On-site sales data supporting documents review

Sales/promotional event monitoring

Organizations that fail to properly implement and monitor the activities associated with field sales and marketing operations can face several business and compliance risks.

Large and widely dispersed sales and marketing teams often stretch the ability of pharmaceutical companies to monitor and maintain compliance with internal policies and external requirements.

We can help our clients to carry out monitoring work by sending our experienced consultants on-site, announced or unannounced to the key sales / promotional events.

Audit & Assurance

Statutory audits are an annual requirement for all Foreign Invested Enterprises (FIEs) in China. Hence, a reliable reporting system is key in your organization’s economic development. Our audit specialists examine your financial statements and accounting records to furnish you with a professional opinion on the relevance of your organization’s accounting standards. We also offer advice on general accounting principles under the PRC GAAP and compliance to these standards in all reporting material.

Our services include:
  • Capital verification
  • Annual financial statement audit
  • Annual foreign exchange reporting review
  • Annual tax verification for Corporate Income Tax
  • Liquidation audit

International Financial Reporting Standards (IFRS) audit

In terms of reporting, over a hundred countries comply with IFRS. With a wealth of experience in auditing IFRS financial statements, Sapience Partners assists organizations with their IFRS application and their compliance with IFRS, plus perform audits where IFRS is mandatory or allowed for group reporting.

Migration audit

Migration audit is required for certain individuals who wish to migrate to a specific country based on their business skill or to prove the source of fund.

Our services include:
  • Australia migration audit – 188A, 188B and 188C
  • US EB5 source of fund migration audit

Agreed upon procedures

In an Agreed Upon Procedure (AUP) engagement, an accountant issues a report of specific items in the financial statement, after conducting the suitable procedures agreed on by users. Having performed AUP engagements for a huge range of subject matters across industries, we are able to meet the various risks specified parties are keen on reviewing.

Capital verification

Special Audit

Accounting Support

Converting accounting standards from People’s Republic of China (PRC) to International Financial Reporting Standards (IFRS)

Pre-Initial Public Offerings (IPO) reporting requirements

Merger and Acquisition (M&A) activity

Financial Due Diligence (FDD)

Comprehensive Financial Due Diligence (FDD)

Exercising financial due diligence involves the accurate representation of your organization to potential purchasers and ensuring factual accuracy to reduce risk for claims of misrepresentation. Sapience Partners assists in conducting reviews in these areas as well as current processes to ensure utmost clarity in representation.

Our services include:
  • Quality of earnings assessment and an assessment of future earnings and cash flow
  • EBITDA analysis
  • Assessment of the quality of assets and liabilities
  • Working capital analysis
  • Evaluate management forecast
  • Tax compliance (state & local)

Limited Financial Due Diligence