(Promulgated by the State Council on 3 July, 1986)
CONTENTS
CHAPTER I GENERAL PROVISIONS
CHAPTER II EXAMINATION AND REGISTRATION
CHAPTER III SCOPE OF SERVICES
CHAPTER IV RULES OF WORK
CHAPTER V THE PUBLIC ACCOUNTING FIRM
CHAPTER VI OTHER PROVISIONS
CHAPTER I GENERAL PROVISIONS Article 1. The present regulations are worked out in accordance with the Article 5 and Article 20 of the Accounting Law of the Article 2. Certified Public Accountants are persons approved by the State to practise auditing, accounting verification and The law of the State protects the Certified Public Accountants in their independent practice. Article 3. The working institute of Certified Public Accountants is the public accounting firm before he can accept an engagement Article 4. The regulatory authority at national level of the Certified Public Accountants and the public accounting firms is the Article 5. An institute of Certified Public Accountants shall be organized by Certified Public Accountants in order to maintain
CHAPTER II EXAMINATION AND REGISTRATION Article 6. A Chinese citizen who loves the People’s Republic of China, supports the socialist system, is a college graduate or a Exemption from the examination may be granted, after qualified through evaluation, to an applicant who has Article 7. The examination and evaluation of Certified Public Accountants shall be directed, organized and supervised on an uniform The procedures of the examination and the evaluation shall be formulated by the Ministry of Finance. Article 8. A candidate of a Certified Public Accountant who is qualified through examination or evaluation shall be reported by The Ministry of Finance prepares and issues, on a uniform basis, the certificate of Certified Public Accountant Article 9. If a Certified Public Accountant is leaving the public accounting firm he belongs to, the public accounting firm Article 10. No staff currently working in the governmental agencies may be registered to practise as a Certified Public Accountant.
CHAPTER III SCOPE OF SERVICES Article 11. The Certified Public Accountants render the following services in auditing and accounting verification: 1. Examination of accounting records, accounting statements and other financial information, and issuance of auditing report; 2. verification of paid-in capital of an enterprise and issuance of capital verification report; 3. participation in handling the liquidation affairs for the dissolution and bankruptcy of the enterprises; 4. participation in conciliation of economic disputes, assistance in verifying evidences of economic lawsuits; 5. other matters of auditing and accounting verification. Article 12. The Certified Public Accountants render the following accounting consultancy services: 1. design of financial and accounting system, serving as accounting consultants, providing consultancy 2. agency service in tax declaration; 3. agency service in application for registration, assistance in drafting contracts, articles of association and other commercial 4. training of financial and accounting personnel; 5. other services in accounting consultancy. Article 13. Governmental agencies, enterprises, nonprofit organization and individuals may engage Certified Public Accountants A client who engages Certified Public Accountants for services shall pay for the services. Article 14. When accepting engagements from governmental agencies, the Certified Public Accountants have the right to access and When accepting engagements from other clients, the access and review of information and documents and
CHAPTER IV RULES OF WORK Article 15. In performing professional work, a Certified Public Accountant must observe the relevant rules in State laws and regulations Article 16. A Certified Public Accountant shall scrupulously abide by the principles of fairness and objectivity and of seeking truth Article 17. A Certified Public Accountant shall avoid from services to any client if there is any relation or conflict of interests Article 18. A Certified Public Accountant shall keep strictly the confidentiality of the data and information obtained or ARticle 19. A Certified Public Accountant shall indicate the situation clearly in the report issued when he finds fabrication Article 20. If a Certified Public Accountant violates the rules of work and brings about harmful effects, the public accounting firm shall 1. warning; 2. fine; 3. provisional prohibition from practice; 4. revocation of the certificate of Certified Public Accountant. A Certified Public Accountant who violates the criminal law shall be submitted to the judicial authority for punishment Article 21. If a Certified Public Accountant is in fact not suitable for the position, the public finance agency that approves the
CHAPTER V THE PUBLIC ACCOUNTING FIRM Article 22. A public accounting firm is a non-profit organization approved by the State to accept independently the engagements A public accounting firm shall balance its revenue and expense by itself, make independent accounting and pay taxes according Article 23. The establishment of a public accounting firm shall be reported to the Ministry of Finance department or to a provincial A public accounting firm established after approval shall make registration with the local administration of Article 24. The services to be rendered by a Certified Public Accountant must be accepted by a public accounting firm on a uniform A public accounting firm may accept engagements in other administrative areas. Article 25. The public accounting firm shall collect, on a uniform basis, the fee for the services rendered by Certified Public Accountants. Article 26. The Ministry of Finance and the provincial public finance departments or bureaus are responsible for supervision over the Article 27. If a public accounting firm violates the stipulations in the present regulations, the public finance agency in charge Article 28. When a Certified Public Accountant comes across the client’s financial receipts and payments incurred abroad,
CHAPTER VI OTHER PROVISIONS Article 29. The interpretation of the present regulations is the responsibility of the Ministry of Finance. The Ministry of Finance Article 30. The present regulations shall be effective as of 1 October, 1986.
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