The United States Bureau of Labor Statistics gathers information and data on the workforce and employment numbers every single year. Recently, they revealed that across the country there are nearly 1,400,00 accountants and auditors at work. Therefore the accounting industry is absolutely strong and important to the backbone of this country. However, America needs to pay close attention to Chinese accounting firms.
The relationship between the United States and China has always been in an odd space. However, with the rise of Chinese accounting firms and their profits soaring, the United States pays more attention to these firms than ever before. The IRS is strong in the United States but cannot reach into other countries. As a result, something new was created to help protect the United States.
The Internal Revenue Services, or IRS, can potentially audit a business tax return within three years of filing. Also, it can gather back taxes that are potentially owed for up to 10 years. In just a year of 2017, the IRS audited 1 million tax returns, paid of $436 in tax refunds, and also gathered nearly $3.5 trillion in taxes. Here are more facts on
Accounting Is Not A New Industry
Corporate audit and assurance services are not new and neither is the accounting industry. Historians trace the accounting industry back to ancient Mesopotamia, thousands of years ago. These people gathered data and stored away records. These records kept track of taxes paid in sheep and the produce bought for big, religious temples. So taxes and accounting have helped keep checks and balances even in ancient civilizations.
Italian mathematician Luca Pacioli published the very first book on double-entry bookkeeping on November 10th, 1494. Now, every single November 10th accounts celebrate International Accounts Day across the globe to honor Luca. The book published by Luca absolutely changed the world and brought forth one of the most significant math industries on the planet. Therefore, he certainly has a role in recent developments in which audits are conducted on Chinese accounting firms.
The United States SEC Works To Monitor Chinese Accounting Firms
SEC compliance audits in China are really important but the average person may know very little about this organization. The United States Securities and Exchange Commission, SEC, is an agency independent of the United States federal government. They uphold federal securities laws, create rules, and help monitor the securities industry. Their work is valuable when it comes to monitoring Chinese accounting firms.
For three decades, the SEC has been stepping up its cooperation with overseas regulators in countries such as Hong Kong. Recent data shows that Chinese accounting firms are having more success than ever before. They are actually breaking records in terms of profits and success. Therefore, it is always important to monitor successful firms to ensure there is nothing nefarious going on. After all, successful companies may use their profits to hide or smudge tax totals.
Every year the SEC brings hundreds of civil enforcement actions against both individuals and companies suspected of violating securities laws. These people may be violating serious securities laws meant to protect stock and options exchanges and more. That way, no one scams the common person into buying bad stocks and more. Therefore, the work of the SEC and Chinese accounting firms is really important to the average, everyday American.
In Conclusion
International tax and accountancy services for China and International tax and accountancy services for Chinese businesses is more important than the average American can even imagine. As a result, the work of the SEC to monitor Chinese accounting firms and to regulate the securities network is a huge deal. They can help protect people from fraud and can also help prevent firms from skimming money on their taxes.