Questions & Answers Section Given in HKICPA Seminar on 23 Jun 2012

Question 4:
Due to the worsening of the general economic situation, some China factories with the shortage of funds will slow down suddenly – so how does the customer manage to do a better selection process.

Will the customer ask for a financial report on the supplier? Yes they will, financial standing is a very minimum criterion. Fortunately, there is a lot more information on suppliers, plus there are service companies that can do investigative work for you to find out what the supplier is really like.