Tough on Accountants: The New PRC Accounting Regulations

In the July/August 2006 edition of China Law & Practice, Alan Wang examined accountants' liability under the PRC legislative regime. Nearly one year later, on June 15 2007, Several Provisions on the Trial of Cases Involving Civil Tort Compensation in Connection with Audit Activities by Accounting Firms (the Regulations) came into effect. Under the Regulations, clearer guidelines are set out for determining accountants' tortious liability arising from their provision of professional services.