Effective Supervision, A Good Medicine For Accountants.

The registered accountants Act gives the CPA the duty of supervision and inspection of the CPA profession.

In recent years, the Chinese ink association has constantly improved the system of checking the quality of practice, promoted the institutionalization and standardization of inspection work, established a long-term mechanism, and exerting the role of industry organizations in the scientific development and social affairs management of the industry.

In the past 7 years, the practice of quality inspection has played an important role in protecting public interests, maintaining capital market stability, regulating the practice of certified public accountants, enhancing the integrity and social values of the industry. It is an effective exploration of the innovation of China's social management system.

Innovating the practice quality inspection mechanism in the industry -- follow the rules and achieve institutionalization

Innovation is the way out.

In recent years, the Chinese Institute of Certified Public Accountants (CPA) has continuously innovating the practice quality inspection mechanism of the industry. It has changed the system of special inspection in the past, and began to conduct periodic, systematic and comprehensive practice quality inspection for all the offices throughout the country, so as to strengthen routine supervision.

This is done to improve the quality of practice, control audit risks and safeguard public interest.

Chen Yugui, vice president and Secretary General of the Chinese Institute of certified public accountants, said.

In 2004, the CPA released the "practice quality inspection system for accounting firms" (Trial Implementation), which carried out a systematic and comprehensive inspection of the accounting firms for 5 years, combining education and punishment, and urging the firms to improve their practice quality.

In order to strengthen the inspection of securities qualification offices and promote the healthy development of the capital market, the China Association of Certified Public Accountants in 2007 will adjust the inspection cycle of securities qualification offices for 3 years and organize the examination directly by the China Association of certified public accountants.

In 2009, on the basis of summing up the experience of the first round of inspection, the CPA revised and issued the new "practice quality inspection system for accounting firms", highlighting the responsibilities of inspection work, and strengthening the supervision of securities qualification offices involving public interests.

The establishment and implementation of the periodic and systematic practice quality inspection system has played an important role in promoting the integrity construction of the industry, promoting the practice quality of the industry, and safeguarding the healthy development of the capital market, and further deepened the international convergence strategy of the industry and realized the same trend with the international practice.

In January 2011, the European Commission approved the approval of China's audit supervision system.

The quality of information in the capital market has always been a society.

Practising

Strengthening inspection team construction -- perfecting inspection methods and striving for standardization.

"The inspection team is the key factor in the practice quality inspection of the industry. The establishment of a high level and stable inspection team is the necessary condition and fundamental guarantee to improve the quality of the practice quality inspection."

Liang Liqun, deputy secretary of the Chinese Institute of certified public accountants, said.

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In the course of 7 years of practice quality inspection, more than 4400 registered accountants have participated in the inspection work. In the inspection practice, a large number of experts with solid professional knowledge, practical experience and deep understanding of inspection work have been selected.

In November 2009, the "practice quality part-time inspectors management measures" was released, and the selection criteria, selection procedures, rights and obligations, working methods and exit mechanism of the part-time inspectors were clarified.

In May 2010, through the recommendation of the securities qualification office and the CPA examination, the CPA's part time inspection personnel library consisting of 233 certified public accountants was formally established, which effectively protected the independence and authority of the practice quality inspection in the industry.

At the same time, when carrying out the practice quality inspection, we should focus on evaluating the design and implementation of the quality control system, business rules and professional ethics.

When determining the object of inspection, ensure that the problem firms are examined in the case of periodic inspection; focus on the audit plan, implementation audit procedures, audit evidence, audit reports and audit reports, and respect the professional judgment of the registered accountants; when conducting disciplinary work, organize experts to demonstrate the existing problems of the firms and registered accountants and the appeals and appeals materials submitted by the firms, and allow the parties to appeal to the conference to protect the legitimate rights and interests of the firms and certified public accountants.

Strict inspection and strict punishment to promote the improvement of the practice quality of the firm

Strict inspection and strict punishment have always been the important principles of the practice quality inspection system of the CPA industry.

From 2005 to 2009, the CPA altogether drew over 4400 registered accountants, inspected 6927 firms, and punished 1467 firms and 2804 registered accountants.

Since 2007, the China Association of Certified Public Accountants has directly organized the examination of securities qualification offices. As of the end of 2009, the inspection of the first cycle has been successfully completed.

In the meantime, a total of more than 260 registered accountants were dispatched, 307 audit reports of listed companies were examined, 48 audit reports of key projects such as large state owned enterprises and financial enterprises, more than 300 audit reports issued by the sub branches, 8 professional securities firms and 42 certified public accountants with serious practice quality problems were punished.

The practice of quality inspection has promoted the comprehensive implementation of the new auditing standards, effectively promoted the construction of the integrity of the industry, and improved the level of credibility and credibility of the industry.

In the audit of financial reports of listed companies from 2004 to 2009, the total amount of profits was adjusted by 305 billion 500 million yuan, the total assets adjusted to be 15214 billion yuan, and the adjusted tax payable was 54 billion 900 million yuan. It made a positive contribution to consolidating the profits of listed companies, avoiding the stock market bubbles, increasing the profit margins of listed companies, and recovering the tax payable for the state.

Promoting institutionalization and normalization of social organization supervision -- experience and reference

The vigorous development of social organizations has become more and more important in economic development and social management. How to realize the institutionalization and standardization of social organization supervision and better play its role is an important part of the current social management innovation.

The practice of CPA industry provides basic experience for reference.

Adhere to the responsibility, keep the mission, and innovate.

Under the correct leadership and guidance of the Party committee of the Ministry of Finance and the financial departments at all levels, the CPA adheres to the practice quality inspection system and is well received.

Practice has proved that the practice of quality inspection system in the industry is effective. It has become a successful example of the innovation of China's social management system, and has also pointed out the direction and the valuable experience for deepening the reform of China's trade associations.

Adhere to the highest public interest and strictly check and discipline.

We must adhere to the fundamental purpose of safeguarding public interests, place regulatory work in the prominent position of the industry management, and carefully arrange and make proper arrangements according to the spirit of "strict inspection and strict punishment" to ensure that the inspection work is not going through the motions, without any discount, and has achieved tangible results.

Always keep the independence and credibility of inspection work.

The practice of quality inspection is carried out under the direct leadership of all levels of associations, and is carried out by full-time inspectors and part-time inspectors.

The staff members of the Concord regional association are responsible for the inspection team, control the inspection process, check and take charge of the inspection results, select, train and assess the part-time inspectors through the part-time inspector system, draw up the inspection manual, check the standards and procedures, ensure the independence and give consideration to the efficiency and quality of inspection.

Scientific positioning and prevention of systemic risks.

Since the implementation of the practice quality inspection, we have intensified the inspection of the system risk of the office, found the weak links in the internal governance and quality control of the firm, and urged and guided the internal management mechanism.