A joint declaration has been signed between
the Mainland China and Hong Kong standard setters, paving the way
for ongoing convergence of auditing standards.

According to the Hong Kong Institute of
Certified Public Accountants (HKICPA), the Chinese Institute of
Certified Public Accountants completed a revision of Chinese
auditing standards and achieved ongoing convergence with standards
in Hong Kong. The revised China Auditing Standards were released on
1 November 2010 and will be effective from January 2012.

“The declaration is necessary given the
increasing global nature of capital markets, and desire that many
companies have to raise capital in multiple jurisdictions,” HKICPA
president Philip Tsai said.

The only difference between Hong Kong and
Mainland auditing standards is an additional standard included in
revised China Auditing Standards about communication between
predecessor and successor auditors.