英文审计报告模板.doc

AUDITORS REPORT ABC-SH(2006)AR NO.2001The Board of Directors of XXX:We have audited the accompanying balance sheets of XXX as of December 31, 2005, and the related statements of income from January to December ,2005.Theses financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audits.We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and discloses in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.In our opinion, the financial statements refereed to above present fairly, in all material respects, the financial position of XXXXX as of December 31 , 2005 and the results of its operations from January to December in conformity with the China Accounting Standard for Business Enterprises and the China Accounting System for Business Enterprises. We noticed that the company has applied for liquidation.It is in the process of liquidation. ABC CPAs Certified Public Accountants Registered in the Peoples republic of China Shanghai, office January 10, 2006II.Notes to Financial Statements for the Year Ended December 31,2005I. General informationXXXXX is invested by XXXXXX. Its establishment was approved by the Peoples Government of Shanghai on October 23,2004 and awarded business license by the Commercial and Administrative Bureau of Shanghai on January 27,2005.Business license number:319499.Registered capital is USD200000. Business term is 20 years.Registered Address:Third floor, department A,number 213 ,TaiguRoad,Waigaoqiao free trade zone,Shanghai.Legal representative is TAN CHO KANG.Business scope:processing the automatic equipment, fabrication, selling the product. providing the revelant technological consulting services, storing(automatic equipment and their parts),distribution of business and after sales services,exhibition of some relevant product,technological trainning,international trade,trade of transition,trade with the companies of the free trade zone,trade agency,agency for the companies who have the operating rights to import and export and the trade with the companies of none-free trade area,basic commercial processing and business commercial consulting services.Approved by the broad meeting，the company applied for liquidation on November 1,2005.It is in the procedure of liquidation now.II. Summary of Significant Accounting Policies and Estimates1. Basis of Financial Statement PreparationThe financial statements have been prepared in accordance with the China Accounting Standards for Business Enterprises, the China Accounting System for Business Enterprises and other related regulations.2. Fiscal YearThe Company adopts the calendar year as its fiscal year, from January 1 to December 31.3. Basis of AccountingThe Company adopts the accrual basis for its accounting treatments. The financial statements have been prepared on the historical cost basis of accounting.4. Reporting CurrencyThe Renminbi (RMB) is the reporting currency of the company. Transactions recorded in foreign currencies are converted into RMB at the mid of market exchange rate at the transaction date. The foreign currency balances of each foreign currency account are converted into RMB at the end of market exchange rate of the balance sheet date. The difference between the amount translated at the closing rate and the carrying amount should be treated as exchange gain or loss in the current period.5. Recognition of Cash equivalentsThe cash equivalents refer to an asset characterized by its short term, easy transformation to cash and low risk in value change. The cash and cash equivalents of our company including: cash, cash in banks, other cash and short-term investment for less than three months.6. Fixed assets, Depreciation Fixed assets are assets with a useful life over one year, held for use in the production of goods or supply of services, for rental to others, or for administrative purposes, or there values are high are also included as fixed assets.Fixed assets are recorded at the historical cost on acquisition. The Company applies a straight-line depreciation method. The estimated residual value is 10% on the cost. The useful lives and annual depreciation rate of each category of fixed assets are stated as following: Item Useful life (Year)Annual depreciation rate (%)furniture518%Management tools518% Mechanical tools518%7.Recognition of revenue Revenue from the sale of goods should be recognized when all the following conditions have been satisfied:1）the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; 2）the Company retains neither continuing managerial involvement to the degree usually associated with ownership or effective control over the goods sold; 3）it is probable that the economic benefits associated with the transaction will flow to the Company;4）the relevant amount of revenue and costs can be measured reliably. 8.Taxation1) value added taxwe are recognized as general taxpayer by revenue authorized institution. Tax rate is 17%。2) income tax of enterpriseOur company registered in the Waigaoqiao Free Trade Zone Pudong New Area.The tax rate is 15%.Measurement of the income tax is expense is according to the payable method.The calculation of assessable income and income tax is according to the relevant tax laws3）personal income taxThe calculation of the employeess income tax is according to the Chinese taxation laws.The company will represent the employees to pay the income tax4）other taxCalculated and recognize according to the revelant regulations of the taxation lawsIII. Notes to the Financial StatementsNote 1: Monetary fundsOn December, 31, 2005, balance of monetary funds is RMB 584582.2. Details are as follows:：Item2005.12.31Cash on hand 50.00Cash in bank584,532.20Total (rmb)584,582.20Other cash in bank included as following :currency 2005.12.31 Amount Exchange rateRMBRMB190,083.75190,083.75USD48,877.168.0702394,448.45Totle584,532.20Note.2: Fixed assets and Accumulated depreciationitemsBeg. Bal. AdditionalsDisposalsEnd Bal.furniture-91,964.0091,964.00 -Managementools-115,851.00115,851.00-Mechanical tools-43,735.0043,735.00-sub totle-251,550.00251,550.00-Total Accu. depreciationfurniture-15,096.2215,096.22-Managementools-9,289.589,289.58-Mechanical tools-2,035.562,035.56-Sub totle-26,421.3626,421.36-Net value-225,128.64225,128.64-Note 3.: Tax PayablesOn December , 31, 2005, balance of accounts payable is RMB -890.67Note 4: Paid-in capitalOn December,31 2005, balance of paid-in capital is 200,000.00USD(11655,300RMB) Invested by NUTEK PRIVATE LIMITED It has been proved by SHENZHOU CPAS (2004) Number:810 Note 5:financial expenseItem year2005Intrest expense-Less：interest revenue2,401.35Net interest expense-2,401.35exchange gain or loss-781.53handlling charges off financial institutions3,719.64Totle536.76 XXXXXXXX January 10,2006