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Nov. 4 – China has issued legislation detailing the comprehensive requirements needed for a company’s internal control framework called the Basic Standard for Enterprise Internal Control.
The legislation was launched by the Chinese Ministry of Finance, the National Audit Office, and all three major industry regulators: the China Securities Regulatory Commission, the China Banking Regulatory Commission, and the China Insurance Regulatory Commission.
It is effective beginning July 1, 2009 and will be initially enforced among listed companies while also encouraging adoption by other large and medium size unlisted companies.
In addition to the Basic Standard for Enterprise Internal Control, three guidance documents were also issued for public consultation.
A copy of the overview of key requirements of the Basic Standard for Enterprise Internal Control, plus the Circular and the draft supporting guidance documents can be found on the PricewaterhouseCoopers website.
I have tried to open the following from the link, but the file is damaged could you please e-mail the documents to me?
Regards
Nicola
A copy of the overview of key requirements of the Basic Standard for Enterprise Internal Control, plus the Circular and the draft supporting guidance documents can be found here.
Dear Nicola,
The link has been corrected.
Regards,
This new regulation seems to be a moving target. Recent indications are that the implementation timeline will be delayed (until January 2010), that the scope of some of the regulations will be loosened, and that it will apply to foreign-listed and state-owned firms first, and not companies listed in Shanghai or Shenzhen.
Regardless of these changes, the trend in China is still for greater transparency and improved internal controls, so it behooves companies to take advantage of the extra time provided by the Ministry of Finance and get their implementation plans in order. We just published a new whitepaper on getting started with C-SOX implementation that I invite your readers to download at http://www.vast-talent.com/en/compliance_solution_for_china_basic_standard_for_enterprise_internal_control_csox.html
Regards,
Alex Raymond