The Chinese Institute of Certified Public Accountants ("CICPA") has recently issued the Circular on Issuing the Exposure Draft for Revised Contents of Standards in Three Aspects Including Using the Work of Internal Auditors, covering the exposure draft for revised contents of auditing standards regarding using the work of internal auditors, responding to violations of laws and regulations, and auditing the disclosures in financial statements, to seek opinions from the entities concerned by October 31, 2018.
The exposure draft relates to 18 standards and 23 application guidance. In terms of using the work of internal auditors, among others, revisions made this time are mainly intended for the Auditing Standards for Certified Public Accountants of China No.1411 – Using the Work of Internal Auditors and the application guidance thereof. The relevant exposure draft widens the scope of rules concerning using the work of internal auditors in the standard, specifies circumstances where it is possible to seek assistance from internal auditors, and provides detailed rules for whether it is allowed to use the work of the internal audit function, and if yes, in what fields and to what extent the work could be used.