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

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Accounting firms face stringent tort liability when conducting audits.

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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: