Cut-off testing around Chinese New Year closures

When factories close for Chinese New Year, shipping dates and recognition dates diverge. Auditors watch this period closely because a few large invoices can move between fiscal years.

Shipping evidence

Keep signed delivery notes or carrier scans for the last shipments before closure and the first after reopening. If title passes on delivery, the date on the warehouse gate is not always the revenue date.

Inventory in transit

Goods on the water or on trucks over the holiday belong in someone’s inventory. Document whether they are yours or the customer’s under the contract terms.

Payroll and accruals

Holiday bonuses and overtime around the shutdown should be accrued in the correct period. Missing accruals are a frequent adjustment in January year-ends.

Plan observation early

If stock is material, schedule auditor observation before the plant empties. Waiting until after the holiday often collides with restart chaos and incomplete counts.