Ministry of Finance, Tentative Provisions for the Temporary Conduct of Auditing in Mainland China by Overseas Accounting Firms

财政部境外会计师事务所在中国内地临时执行审计业务暂行规定

May 04, 2011 | BY

clpstaff &clp articles

Provisions for temporary auditing unified.

Clp Reference: 3120/11.03.21 Promulgated: 2011-03-21 Effective: 2011-03-21

Issued: March 21 2011
Effective: as of date of issuance

Applicability: For the purposes of these Provisions, the term “overseas accounting firm” means an accounting firm registered and established in the Hong Kong Special Administrative Region, the Macao Special Administrative Region, Taiwan or a foreign country.

For the purposes of these Provisions, the term “temporary conduct of auditing” (Auditing) means the auditing of a company or other relevant organisation established in mainland China conducted by an overseas accounting firm on a temporary basis upon appointment by an overseas client (Article 2).

Main contents: The scope of Auditing shall be limited to the audit as directed by the overseas client, and the Auditing report shall have no legal validity in mainland China.

Where laws or regulations of China provide that a service is to be performed by a mainland Chinese accounting firm and its certified public accountants, an overseas accounting firm and its certified public accountants may not perform such service.

The Provisions detail the application for Auditing and the restrictions thereof.

Related legislation: PRC Law on Certified Public Accountants

Repealed legislation: Tentative Provisions for the Temporary Conduct of Auditing in China by Foreign Accounting Firms, Dec 6 1993; Supplementary Provisions for the Tentative Provisions for the Temporary Conduct of Auditing in China by Foreign Accounting Firms, Dec 27 1993; Tentative Provisions for the Temporary Conduct of Auditing in Mainland China by Accounting Firms from Hong Kong, Macao and Taiwan, May 26 1994; Circular on the Use of the New Version of the Temporary Auditing Permit, Mar 10 2003; Supplementary Provisions for the Tentative Provisions for the Temporary Conduct of Auditing in Mainland China by Accounting Firms from Hong Kong, Macao and Taiwan, Nov 26 2003; Circular on Extending the Term of Validity of the Permits for the Temporary Conduct of Auditing, Nov 28 2005; and Circular on Extending the Term of Validity of the Permits for the Temporary Conduct of Auditing in Mainland China by Accounting Firms from Hong Kong and Macao, Sep 16 2008

clp reference:3120/11.03.21
prc reference:财会 [2011] 4号
promulgated:2011-03-21
effective:2011-03-21

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]