Case study details
Sector: Engineering and ManufacturingClient: One of the largest manufacturers of plant and heavy machinery with revenue in excess of ¥6b
Requirement: Audit, Financial Statements & Advisory
Lead Partners: Mr Lin Wanqiang, Partner at RSM in China
Growth worldwide drives accounting needs
After Reanda CPA Shenzhen joined RSM China in 2012, and became a member of the RSM network, they became aware that one of their long-standing clients needed help from member firms across the world.
The client had grown substantially in the last ten years as a result of strong domestic performance in China and substantial international expansion. But as the number of subsidiaries grew, each one audited by a local accounting firm, it became increasingly difficult to control the audit process.
Trusted relationship leads to global coordination role
RSM China’s relationship with the client was extremely strong. They had provided audit of financial statements and audit of the internal control systems for the parent company for many years, and had become its trusted advisor, as Mr. Lin Wanqiang explains: “We are pleased we are trusted by the client, who ask our opinion on a whole range of matters.”
This led to the client asking RSM China to take the lead in coordinating the global audit and to handle the transition to RSM member firms so that standard audit practices and policies could be implemented.
Communication and a one-team approach ensure quality
Although the audit approach is planned and coordinated in China, partners throughout the RSM network play an important role in ensuring quality and punctual delivery. They naturally work closely with the local subsidiary, but it is the regular communication with the central team and each other that makes a real difference. This hands-on approach means problems and issues are addressed quickly, and best practices are shared more readily - all of which helps maintain the highest quality of service.
Communication is inevitably one of the biggest challenges at the outset of a global audit assignment. Building close working relationships and processes that were capable of meeting the client’s high service-quality requirements were a priority for Mr Lin Wanqiang, who is satisfied with the progress that has been made: “As relationships have grown stronger the global project team has been able to deliver even better quality service to the client.”
How RSM will help the client expand in the future
As well as implementing an efficient global approach to audit, which is clearly a priority for the client, it is also important to help them develop their international businesses and expand into new territories.