The Ministry of Finance of the People’s Republic of China (MOF) today announced new and revised China Standards on Auditing (CSAs). These will see significant changes to the auditor’s report that will bring about enhanced transparency and relevance for users. Aligned with global trends, the enhanced auditor’s report will feature a new format and enhanced information about the audit.
A staggered approach will be adopted for implementing the enhanced auditor's report. This commences with auditor’s reports dated from 1 January 2017 for financial statements audits of Mainland entities listed in both Mainland China and Hong Kong (A+H shares companies), as well as those listed in Hong Kong (H shares companies) whose audits are performed in accordance with CSAs. These changes will be extended to more Mainland entities in 2018.
At KPMG, we have been busy preparing for, and are looking forward to the new enhanced auditor’s report. Speak to your regular KPMG contact for more information or to discuss any questions.