I had my first engagement which was not included in the 27 engagements I got. This is our US firm's engagement, and we just need to review the Chinese translation of a bond propectus. The bond would be issued by an international organization aiming to use the funding to develop certain projects in China.
There were so many versions and we reviewed again and again. As I said, I am not familier with the Chinese accounting terms. When I reviewed the staff's work, I have to check the Chinese version of financial statements of the organization to ensure the terms were the same. We communicated with the lawyer all the time. After we worked for two days, I thought it was over. However, it was not. And it ruined my weekend in Beijing which I will tell later.
Monday, October 23, 2006
Zhu Jia Jiao - Oct. 21
Oct. 21st
I went to Zhujiajiao with my friends. It is only about 1hr drive from the city. I copied the following instruction from the internet.
Zhujiajiao is so called as the "Shanghai Venice," "Shanghai suburbs Hollywood" reputation, also known as Street-Corner, Blair said Zhuxi. commonly known as the "Kok Lane," was originally called Chu village.
Located in Qingpu County, "Golden 玉" 318 National Road running through the town, through the town and river port groove golden waterway, surface transport links and beautiful scenery, abundant natural resources, is the best preserved ancient water towns in southern Yangtze River in Shanghai. The Shanghai municipal government in 1991 was named as one of the four famous historical and cultural towns.
Its long history, unadulterated, profound cultural heritage, the pieces back in time 5,000 years ago, there is human activity; Back in the Three Kingdoms period more than 1,700 years ago, it has villages fairs; Ming has become throngs gathered in the 1590s. Tradition and the bustling town of pyrotechnics.
Now the Ming and Qing Dynasties can still see the old market building and the Riverboat swamps ancient customs and habits of the sea bridge. frontline Street Office Park plant, Chenghuang Temple, and many other sites round-Sim Yuen everywhere smelling rich cultural ambience.
"Shuimu Tsinghua University, Wen-ju rustic," from the Ministry of Punishment Youshilang the Wang Chang Qing Dynasty and as a touchstone of Jurists. Yufu declaration by the founder of Shanghai, from Imperial doctor Chenlianfang that destroyed the famous popular novelist Roth-e, Zhujiajiao is Elegant and Graceful and talented people.
I went to Zhujiajiao with my friends. It is only about 1hr drive from the city. I copied the following instruction from the internet.
Zhujiajiao is so called as the "Shanghai Venice," "Shanghai suburbs Hollywood" reputation, also known as Street-Corner, Blair said Zhuxi. commonly known as the "Kok Lane," was originally called Chu village.
Located in Qingpu County, "Golden 玉" 318 National Road running through the town, through the town and river port groove golden waterway, surface transport links and beautiful scenery, abundant natural resources, is the best preserved ancient water towns in southern Yangtze River in Shanghai. The Shanghai municipal government in 1991 was named as one of the four famous historical and cultural towns.
Its long history, unadulterated, profound cultural heritage, the pieces back in time 5,000 years ago, there is human activity; Back in the Three Kingdoms period more than 1,700 years ago, it has villages fairs; Ming has become throngs gathered in the 1590s. Tradition and the bustling town of pyrotechnics.
Now the Ming and Qing Dynasties can still see the old market building and the Riverboat swamps ancient customs and habits of the sea bridge. frontline Street Office Park plant, Chenghuang Temple, and many other sites round-Sim Yuen everywhere smelling rich cultural ambience.
"Shuimu Tsinghua University, Wen-ju rustic," from the Ministry of Punishment Youshilang the Wang Chang Qing Dynasty and as a touchstone of Jurists. Yufu declaration by the founder of Shanghai, from Imperial doctor Chenlianfang that destroyed the famous popular novelist Roth-e, Zhujiajiao is Elegant and Graceful and talented people.
Friday, October 20, 2006
Traing, Meeting with FI family and Review W/Ps - Oct. 10-13
Oct. 10th, 11th & 12th
Three days technical training, basically talking about the difference between IFRS and new China GAAP - Accounting Standards for Business Enterprises ("ASBEs"). The ASBEs cover nearly all of the topics under the current IFRSs literature and will become mandatory for listed Chinese enterprises from 1 January 2007. Most of my clients are banks and insurance companies under the supervision of China Bank Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC), and are required by the regulators to apply ASBEs from 1 January 2007 as well. The firm has developed a brochure of "A comparison wit current PRC GAAP and IFRS" which is very helpful.
The training also talked about audit quality. The facilitator mentioned as the cost of criminal in China is low, there are various illegal or unethical behaviors existing. Increase our professional skeptism is very important. He mentioned one case which was really made me eye open:
One entity had a building in progress on the book. The auditor reviewed the project plan, went to the construction site of the building, walked around and also talked to the reponsible person. Everything looked OK. On the 2nd year, the building in progress was still on the book. The auditor went to the location again and found out that the building was not really belonged to the entity. The auditor could not figure out that in the prior year, how the entity could arrange for the tour of the construction site and where the "responsbile person" was from.
There are also some other cases mentioned, especially on the confirmation controls. e.g. the accounting clerk from the entity has good relationship with the employee in the bank and could obtain whatever bank confirmation agree to the number of the entity's book; or some of the addresses of the confirmation were actually fake; or the chops/stamps on the confirmation were made by radish... ... The national quality team required us to check the confirmation address one by one, which brought the clamour from the audience.
As required by the local regulator, we are also required to have all the working paper in Chinese. Most of the audit packs we use are still in English. Similar as in Toronto, the most updated pack is the manufacturing industry pack, which is bilingual in China. For banking and insurance, we use HK and US packs which are not available in Chinese. I could just say translation and review of the translation are not easy jobs, - especially to me. As I learnt Accounting in Canada, I don't kown a lot of terms in Chinese. Not only to me though, I saw people from US, UK, Italy etc. in the training room. And of course, there are a lot of people from Hong Kong who are more comfortable to communicate in Cantonese (vs. Mandarin) and Traditional Chinese (vs. Simplified Chinese).
My partner H and my mentor L are from HK as well. Both of them could speak good Mandarin and English. There are internal policies of manager's utilization and $$$ portfolio, the same as in Toronto I guess. H assigned me about 27 jobs at once, most of them are branches of foreign banks and insurance companies. Although some of the jobs are not big, but it is 27!!!! "You don't feel itch while there are so many lice." I told myself I have no fear.
Oct. 13th.
The managers & partners of FI group had a lunch gathering today. Most of them only come back for training in these three days and would leave for engagement to different provinces again next week. Totally we have about 12 people, can't compare with FI group in Toronto:) Due to the big new engagement, one manager need to be in charge of the audit of several branches in different provinces. They call themself the "captain of the air group" cos' they need to lead the team fly to different locations all the time. However, all of them looked happy and full of vigour. They told a lot of funny things, e.g.
Three days technical training, basically talking about the difference between IFRS and new China GAAP - Accounting Standards for Business Enterprises ("ASBEs"). The ASBEs cover nearly all of the topics under the current IFRSs literature and will become mandatory for listed Chinese enterprises from 1 January 2007. Most of my clients are banks and insurance companies under the supervision of China Bank Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC), and are required by the regulators to apply ASBEs from 1 January 2007 as well. The firm has developed a brochure of "A comparison wit current PRC GAAP and IFRS" which is very helpful.
The training also talked about audit quality. The facilitator mentioned as the cost of criminal in China is low, there are various illegal or unethical behaviors existing. Increase our professional skeptism is very important. He mentioned one case which was really made me eye open:
One entity had a building in progress on the book. The auditor reviewed the project plan, went to the construction site of the building, walked around and also talked to the reponsible person. Everything looked OK. On the 2nd year, the building in progress was still on the book. The auditor went to the location again and found out that the building was not really belonged to the entity. The auditor could not figure out that in the prior year, how the entity could arrange for the tour of the construction site and where the "responsbile person" was from.
There are also some other cases mentioned, especially on the confirmation controls. e.g. the accounting clerk from the entity has good relationship with the employee in the bank and could obtain whatever bank confirmation agree to the number of the entity's book; or some of the addresses of the confirmation were actually fake; or the chops/stamps on the confirmation were made by radish... ... The national quality team required us to check the confirmation address one by one, which brought the clamour from the audience.
As required by the local regulator, we are also required to have all the working paper in Chinese. Most of the audit packs we use are still in English. Similar as in Toronto, the most updated pack is the manufacturing industry pack, which is bilingual in China. For banking and insurance, we use HK and US packs which are not available in Chinese. I could just say translation and review of the translation are not easy jobs, - especially to me. As I learnt Accounting in Canada, I don't kown a lot of terms in Chinese. Not only to me though, I saw people from US, UK, Italy etc. in the training room. And of course, there are a lot of people from Hong Kong who are more comfortable to communicate in Cantonese (vs. Mandarin) and Traditional Chinese (vs. Simplified Chinese).
My partner H and my mentor L are from HK as well. Both of them could speak good Mandarin and English. There are internal policies of manager's utilization and $$$ portfolio, the same as in Toronto I guess. H assigned me about 27 jobs at once, most of them are branches of foreign banks and insurance companies. Although some of the jobs are not big, but it is 27!!!! "You don't feel itch while there are so many lice." I told myself I have no fear.
Oct. 13th.
The managers & partners of FI group had a lunch gathering today. Most of them only come back for training in these three days and would leave for engagement to different provinces again next week. Totally we have about 12 people, can't compare with FI group in Toronto:) Due to the big new engagement, one manager need to be in charge of the audit of several branches in different provinces. They call themself the "captain of the air group" cos' they need to lead the team fly to different locations all the time. However, all of them looked happy and full of vigour. They told a lot of funny things, e.g.
- sometimes the auditor selected a sample of loan from a mountain subbranch, a person need to ride a horse and then take a bus, then take a train, and send the loan file to the auditor to review;
- in some places, people think the auditors are from the government supervison bureau, and come to report all kinds of stuff (maybe a good thing for us I think);
- and last but not least, a guy came to the auditor's hotel to commit suicide. He got laid off due to the whole department was disposed. He thought it was suggested by the auditors.
Finally I got my system account set up. I got first email from a good friend from Toronto, which made me happy all day.
I got caught at about 6pm to help to reivew one of the audit file of one branch of the above mentioned big engagement. I found the quality, especially the documentation of the file was not satisfied. As a reviewer, I always could not understand the purpose of the testing, where the samples were selected and the methodology of the selection. From the review, I also identify that I need to develop my knowledge on the requirements from the local regulators, CIRC & CBRC for example. As the engagement is so called "Statutory Reporting", which should comply the requirement of the regulators. E.g. all the loans should be classified as one of the five classes as per CBRC.
When I left the office, it was all dark. The office building is beautiful in the evening. And the buildings along the Bund looked splendid.
Tuesday, October 10, 2006
New Office Life Starts - Oct. 8 & 9
Oct. 8th
I went for a medical check first in the morning. Then I went to the office. HR brought me to the 26th/F which is the audit floor. I was assigned a cubical with my English and Chinese name tag.
I finally got a laptop but the system account was still not set up. I sent email to Toronto IT myself request the termination. I even got a mug with my name.
I was on new staff orientation. Quite boring. I met Partner H. He is also very young, the same as Partner D. Partner D had been on a business trip since Oct. 3rd. Partner H would also be my performance coach. He found me a buddy/mentor L who could coach me if I have any questions regarding Shanghai's practice and approach. H told me China tried to increase 1/2 of partners in the next three years. No wonder the partners are looked so young. There are so many clients and opportunities in China. The accounting firms grow very fast.
I went for a medical check first in the morning. Then I went to the office. HR brought me to the 26th/F which is the audit floor. I was assigned a cubical with my English and Chinese name tag.
I finally got a laptop but the system account was still not set up. I sent email to Toronto IT myself request the termination. I even got a mug with my name.
I was on new staff orientation. Quite boring. I met Partner H. He is also very young, the same as Partner D. Partner D had been on a business trip since Oct. 3rd. Partner H would also be my performance coach. He found me a buddy/mentor L who could coach me if I have any questions regarding Shanghai's practice and approach. H told me China tried to increase 1/2 of partners in the next three years. No wonder the partners are looked so young. There are so many clients and opportunities in China. The accounting firms grow very fast.
Sunday, October 01, 2006
Back to Beijing & My Brother's Wedding - Sept.29 - Oct.5
Sept. 29th
My flight to Beijing was 3:30pm. My friend S called me in the morning and said we could go shopping and have lunch together, and then she would drive me to the airport. I made the mistake again by underestimate the traffic jam. The 7.8km distance to the airport took us more than 2hrs, and I ......aaaaaa..... missed the flight.....
However, I was lucky and got another ticket at the airport at 40% discount for the flight at 5pm.
Sept. 30th
My highschool friends in Beijing had a gathering at a restaurant serving Sichuan food. Girls were still the same, but the boys looked so different. I think this is because women have the conscious to keep self look younger. I stayed with these folks for 6 years in a boarding school. We grew up together, like brothers and sisters. Although I hadn't met them for a couple of years, we did not feel strange with each other. We talked about a lot of funny things when we were together. I laughed all the night.
One of the reason I pushed the secondment process and wanted to go back to China before Oct. 1st, was because the day was my brother's wedding. I am very proud of him. It was a western style wedding which is quite popular in China now. The weather was excellent. My parents were very happy, so was I.
My flight to Beijing was 3:30pm. My friend S called me in the morning and said we could go shopping and have lunch together, and then she would drive me to the airport. I made the mistake again by underestimate the traffic jam. The 7.8km distance to the airport took us more than 2hrs, and I ......aaaaaa..... missed the flight.....
However, I was lucky and got another ticket at the airport at 40% discount for the flight at 5pm.
Sept. 30th
My highschool friends in Beijing had a gathering at a restaurant serving Sichuan food. Girls were still the same, but the boys looked so different. I think this is because women have the conscious to keep self look younger. I stayed with these folks for 6 years in a boarding school. We grew up together, like brothers and sisters. Although I hadn't met them for a couple of years, we did not feel strange with each other. We talked about a lot of funny things when we were together. I laughed all the night.
One of the reason I pushed the secondment process and wanted to go back to China before Oct. 1st, was because the day was my brother's wedding. I am very proud of him. It was a western style wedding which is quite popular in China now. The weather was excellent. My parents were very happy, so was I.
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