Auditing fraud risk in China is not just a technical challenge it can mean auditing businesses that don’t exist.

In this episode, Wayne Basford and Judith Leung explore how audit fraud risk in China and emerging markets operates at a fundamentally different level. Drawing on real-world cases and lessons from the China Hustle, they explain why standard audit procedures can fail when transactions, customers, and even bank evidence are deliberately fabricated.

The discussion highlights why audit fraud risk in China requires a different mindset one grounded in deep scepticism, local insight, and practical verification.

🎧 In this episode, you’ll learn:

• Why audit fraud risk in China can involve businesses that don’t exist
• Why traditional audit evidence like confirmations can be unreliable
• How fake customers, invoices, and cash flows are constructed
• Why site visits and tax records are critical audit evidence
• What auditors should do differently before accepting high-risk engagements

Financial Reporting Conversations is brought to you by Basford Consulting helping professionals go beyond compliance and get financial reporting right.

For technical insights, training, and resources that make the unknowns in financial reporting known, visit basfordconsulting.com

🔗 Connect with us:
LinkedIn: Wayne Basford & Judith Leung
YouTube: @BasfordConsulting
Website: basfordconsulting.com