><small<3.Abstract
In recent years, multinational companies operating in China have devoted significant attention to external risk factors such as geopolitical tensions and trade disputes. Yet while external risks command executive focus, internal risks can quietly accumulate. Paul Tan explains the different mandates of external auditors and forensic auditors, the practical implications of those differences, and why deploying the right expertise at the right time materially influences outcomes when concerns arise.
Identifying and managing risk is essential to running a successful business. Senior management teams tend to focus on external risks — risks that are usually visible, widely reported, and often perceived as existential to market access and operational continuity. However, in China it is often misconduct by internal actors — usually in collusion with third parties — that is particularly prevalent when economic conditions are challenging. These issues may remain undetected
