Chinese Institute of Certified Public Accountants, Attention by Certified Asset Appraisers Toward the Legal Ownership of Appraised Objects Guiding Opinion

Issued: January 28 2003

Effective: March 1 2003

Main contents: Parties enlisting appraisal services should provide documentation of the ownership of the appraised object, as well as proof of the truthfulness, legality and completeness of the documentation (Article 3). Certified appraisers should inform clients that issuing confirmation of ownership or opinions on ownership is beyond the scope of their services (Article 5). When ownership documentation is in some way deficient or the client does not possess ownership of the object, the appraiser should request a letter of undertaking or letter of explanation (Article 7). Certified appraisers shall disclose that they have inspected ownership documentation, but shall not make any implied or explicit statement that they take responsibility for the truthfulness, legality and completeness of the materials (Article 9). In its appraisal report, the appraiser shall state the responsibility of the appraiser and the client with respect to the ownership of the appraised object, and describe the object's ownership, the source of the ownership documentation, the inspection of the documentation and effect of the ownership on the appraisal (Articles 10 and 11).