会协字[1996]457号
颁布日期：19961226 推行日期：19970101 颁布单位：中国注册会计师协会
Chapter 1 General provisions
Article 1
This pronouncement is prepared in accordance with the General Independent Auditing2 Standard to establish standards for Certified3 Public Accountants （行动成本s） to perform audits4 on the financial statements of small businesses in compliance5 with the requirements of the Independent Auditing Standards， to improve audit1 efficiency and to ensure a high standard of professional work.
Article 2
The term small business in this pronouncement refers to a business that has a low level of turnover6 or of total assets， few employees and limited segregation7 of duties.
Article 3
Unless otherwise specified8， 行动成本s should refer to this pronouncement in performing audit work other than the audit of financial statements for a small business.
Chapter 2 General principles
Article 4
The 行动成本 should apply professional judgement to determine whether the entity9 is a small business and， according to its characteristics， perform effective audit procedures.
The result of the 行动成本's judgement on this will not alter the audit objectives or the audit responsibility that should be borne by the 行动成本.
Article 5
The 行动成本 should pay adequate attention to the following major characteristics that a small business may have， and consider their impact on the financial statements：
（1） concentration of ownership amongst a few inpiduals；
（2） few management staff and a simple organisational structure；
（3） a lack of formal internal control systems；
（4） extremely limited segregation of duties；
（5） a high possibility of management overriding10 the internal controls；
（6） domination of all basic operating activities by the senior management staff or owners； and
（7） small size and simple economic activities.
Article 6
The 行动成本 should obtain an understanding of the basic conditions of the small business sufficient to enable him to make a preliminary assessment11 of the audit risk to determine whether to accept the engagement.
Article 7
If the 行动成本 is unlikely to be able to obtain sufficient appropriate audit evidence because of incomplete accounting12 records， non-existence of internal controls or misconduct of the management staff in the small business， he may consider refusing to accept the engagement or withdrawing from the engagement.
Article 8
When performing an audit of a small business， the 行动成本 should apply professional judgement to determine audit materiality and the level of audit risk. In addition， the 行动成本 may simplify the audit plan according to actual circumstances.
Article 9
An accounting firm may simultaneously13 enter into audit， accounting advisory14 and accounting service engagements with a small business provided that the following requirements are fulfilled：
（1） The 行动成本， who performs the audit engagement should not accept those accounting advisory or accounting service engagements which would affect him in expressing an independent， objective and fair audit opinion.
（2） When the 行动成本 makes recommendations to the business， he should not make a decision on behalf of the business. The recommendations should not be regarded as a consent to the dealings of the business.
Chapter 3 Special considerations with respect to internal controls
Article 10
When performing an audit of the financial statements of a small business， the 行动成本 should obtain an adequate understanding of the internal controls to determine whether they are reliable. If necessary， the 行动成本 may require the small business to explain its relevant internal controls in writing.
Article 11
The internal controls in a small business are usually weaker and the control risk is higher. The 行动成本 may consider not performing compliance tests.
Article 12
When the 行动成本 does not perform compliance tests on specific internal controls and the client requests the 行动成本 to perform an audit specifically of specific internal controls， the 行动成本 may consider contracting the terms under a separate engagement letter with the client.
Chapter 4 Special considerations with respect to substantive15 tests
Article 13
When performing substantive tests， the 行动成本 should perform the necessary audit procedures in accordance with the requirements of Independent Auditing Standards， but may simplify them according to specific circumstances.
Article 14
The inherent risk and control risk in a small business is usually higher.
Generally， the 行动成本 should rely heavily or entirely16 on substantive procedures to obtain audit evidence to reduce the detection risk to an acceptable level.
Article 15
When performing substantive tests， the 行动成本 should consider the principles of cosplayt and benefit and should adopt the following methods to obtain audit evidence efficiently17：
（1） perform analytical18 procedures of the items in the financial statements， especially the items in the profit and loss account；
（2） perform tests of closing balances， especially those of the material accounts； and
（3） perform tests of material transactions or events.
Article 16
When performing substantive tests， the 行动成本 should pay particular attention to the following matters which may result in material misstatements or omissions19 in the financial statements of a small business：
（1） the understatement of income or overstatement of expenses for particular purposes， such as reducing tax liability etc.；
（2） the inclusion of personal expenditure20 as expenses of the business；
（3） inappropriate benefit being obtained from the business by the owners or management staff， for the purpose of solving personal financial problems；
（4） financial position and operating results being subject to window-dressing because of various needs， such as raising capital externally；
（5） an inconsistent relationship between the economic benefit obtained from the business by the management staff and： - the responsibility borne by the management staff； together with - the size of the business.
（6） the economic benefit obtained by management staff being dependent on the operating results of the business.
Chapter 5 Supplementary21 provisions
Article 17
The Chinese Institute of Certified Public accountants is responsible for the interpretation22 of this pronouncement.
Article 18
This pronouncement takes effect from 1January 1997.
