China boardroom update - Issue 2, April 2010
On 26 April, 2010, the Ministry of Finance, China Securities Regulatory Commission, National Audit Office, China Banking Regulatory Commission and China Insurance Regulatory Commission issued the Application Guidelines for Enterprise Internal Control, Guidelines for Assessment of Enterprise Internal Control and Guidelines for Audit of Enterprise Internal Control (collectively the "Implementation Guidelines for Enterprise Internal Control"). These guidelines are issued to provide guidance in implementing the Basic Standard for Enterprise Internal Control ("Internal Control Basic Standard") issued back in June 2008 by these five authorities. The Implementation Guidelines for Enterprise Internal Control, specifying the scope, effective dates and requirements for implementing the Internal Control Basic Standard, signify that the China regulators are finally mandating this compliance requirement.