Companies that need to submit audit reports for annual inspection:

One-person limited liability companies, listed joint-stock companies and companies engaged in finance, securities and futures;

Companies engaged in insurance, venture capital, capital verification, evaluation, guarantee, real estate brokerage, entry-exit intermediary, overseas labor agency and enterprise registration agency;

Companies whose registered capital is paid in installments but not paid in full;

Companies that commit illegal acts of falsely reporting registered capital, making false capital contributions or withdrawing capital contributions within three years;

Enterprises with foreign investment must submit annual audit reports.

The amount of loss is huge.

What does an audit do?

Audit refers to an independent economic supervision activity in which specialized agencies conduct pre-and post-inspection on major projects and financial revenues and expenditures of governments, financial institutions, enterprises and institutions at all levels according to law.

Audit is an independent economic supervision activity, and independence is the characteristic that distinguishes audit from other economic supervision.

The basic function of audit is supervision and economic supervision, and it is carried out as a third party.

The subject of audit is a full-time institution or full-time staff engaged in audit work. For example, the audit object of the national audit institution is the finance, financial revenue and expenditure and other economic activities of the audited entity, that is to say, the audit object only includes accounting information and its financial revenue and expenditure activities, as well as other economic information and its other economic activities.

The basic working mode of audit is inspection and evaluation, that is, collecting evidence, finding out facts and judging whether it is good or bad against standards.

The main purpose of audit is not only to check and evaluate the authenticity and legality of accounting materials and their financial revenues and expenditures, but also to check and evaluate the benefits of relevant economic activities.

Audit direction certificates include junior auditors, intermediate auditors and senior auditors.

What kind of company needs an audit every year?