Supreme People's Court, Several Provisions on the Trial of Cases Involving Civil Tort Compensation in Connection with Audit Activities by Accounting Firms

最高人民法院关于审理涉及会计师事务所在审计业务活动中民事侵权赔偿案件的若干规定

July 02, 2007 | BY

clpstaff &clp articles

Accounting firms face stringent tort liability when conducting audits.

Promulgated: June 11 2007
Effective: June 15 2007

Main Contents: If a certified public accountant is characterized by any of the circumstances set forth below in the course of audit activities and issues an untruthful report, thereby causing a materially interested party to incur a loss, the accounting firm and the audited work unit shall be deemed to be jointly and severally liable:

(1) he/she maliciously colluded with the audited work unit;

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]