Revised Regulations on Audit Laws Released

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Feb. 22 – China’s State Council has recently released revised implementing regulations for audit laws applicable beginning May 1, 2010.

The revised rules cover responsibilities and limits of audit offices, audit procedures, and legal obligations. Specifically, it says that audit officers should avoid conflicts of interests with companies being audited, and audit authorities have the obligation to keep the confidentiality of all company financial accounts being audited.

The new rules also address the concern that state-funded projects will not misuse funds and increase corruption.

Audit offices will only be allowed to freeze the assets of audited companies for up to seven days, and that extensions not exceeding seven days must be approved by a person-in-charge of the people’s government above the county level.

For more professional advice on tax issues in China email tax@dezshira.com.

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