In China, the main organizations that are required to be audited are as follows: limited liability companies, stock companies, public companies and foreign-invested enterprises. These types of organizations are required by law to be audited, whatever the size of their sales or assets.
A corporation is the most formal form of a legal entity. According to the company law of the People’s Republic of China, corporation here refers to a limited liability company or a limited joint stock company. A corporation is an enterprise juridical person, which has independent juridical personal property and enjoys the property rights of a juridical person. The most important aspect of a corporation is limited liability. That is, shareholders have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held personally liable for the company’s debts.