The Chinese government has issued a guideline
for implementing internal controls.
Deloitte said the guideline would raise the
quality of financial reporting and minimise the risk of fraud.
The firm said it will also provide clearer
guidance for Chinese companies to raise management standards and
adopt best practices for risk management.
“The new guideline will support China to build
up best practices in corporate governance, which has become more
and more important in the wake of growing outbound and inbound
investments in China,” said Danny Lau, Deloitte China national
managing partner for enterprise risk services.
According to a Deloitte China survey, 84% of
respondents believe the best way to improve corporate governance is
to strengthen internal control procedures.
The guideline was released by the Ministry of
Finance, the China Securities Regulatory Commission, the National
Audit Office, the China Banking Regulatory Commission and China’s
Insurance Regulatory Commission.