Chinese Institute of Certified Public Accountants, Audit of Accounting Statements of Enterprise Conglomerates Guiding Opinion

Issued: April 15 2004
Effective: May 1 2004

Main contents: The Opinion requires enterprise conglomerate certified public accountants (CPAs) to consider whether they are able to undertake the responsibilities of an enterprise conglomerate CPA in view of the depth of their direct audit of the conglomerate's accounting statements (Part Two). To avoid risks of possible significant errors in the statements, enterprise conglomerate CPAs should determine the audit procedures required for consolidation of statements, as well as their scope of direct work required on and other CPAs' scope of work on the accounting information of the conglomerate's composing parties such as the head office, parent company, branches, subsidiaries and joint ventures (Article 10). Part Four concerns the enterprise conglomerate CPAs' adequate contact with the composing parties and other CPAs (including working papers). Enterprise conglomerate CPAs should make sure whether the work of other CPAs is adequate in order to fulfil the audit requirements of conglomerate accounting statements (Article 21). Part Six stipulates that enterprise conglomerate CPAs should issue audit reports in compliance with the independent audit guidelines.
Related legislation: Independent Audit Basic Guidelines