Presentation by Dr. Chen Yugui, PAODC / PAIB Committee / CICPA Joint Session, Beijing,China, October 15, 2013

1. China's Economic and Social
Development and the Progress in the
Accountancy Profession
Presented by: Dr. Chen Yugui
Deputy President & Secretary-General of CICPA
October 15, 2013, Beijing, P. R. China

2. I. China's economic and social development
1. Overview of the country
Size:
9.6 million square kilometers
4 Municipalities
23 Provinces
5 Autonomous Regions
2 Special Administrative Regions
Population: 1.37 billion
Growth Rate: 0.57 %
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3. I. China's economic and social development
2. China’s economic achievements
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4. I. China's economic and social development
3. Challenges and prospects of economic and
social development
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Source: barbaradenny.com

5. II. Progress in the Chinese
Accountancy Profession
1. Background of the profession
The CPA Law
(October 1993)
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6. II. Progress in the Chinese
Accountancy Profession
1. Background of the profession (Continued)
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7. II. Progress in the Chinese
Accountancy Profession
1. Background of the profession (Continued)
National Program for
Medium and Long-term
Talent Development
(2010-2020)
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8. II. Progress in the Chinese
Accountancy Profession
2. Overview of the CICPA
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9. II. Progress in the Chinese
Accountancy Profession
2. Overview of the CICPA (Continued)
October 1996
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May 1997

10. II. Progress in the Chinese
Accountancy Profession
2. Overview of the CICPA (Continued)
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11. II. Progress in the Chinese
Accountancy Profession
3. Implementation of the development strategy
for the profession
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12. II. Progress in the Chinese
Accountancy Profession
4. About the CPAs and the accounting firms
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13. II. Progress in the Chinese
Accountancy Profession
4. About the CPAs and the accounting firms
(Continued)
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14. II. Progress in the Chinese
Accountancy Profession
4. About the CPAs and the accounting firms
(Continued)
• Accounting firms: There are 8,151 accounting
firms in total across China, including 47 firms
qualified for businesses related to securities
and futures trading.
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15. II. Progress in the Chinese
Accountancy Profession
4. About the CPAs and the accounting firms
(Continued)
• In 2012, 47 firms in China saw their respective
business revenue exceeding 1 billion Yuan,
including 11 local Chinese firms whose
respective revenue topped 1 billion Yuan, the
highest of which reaching 2.4 billion Yuan.
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16. II. Progress in the Chinese
Accountancy Profession
4. About the CPAs and the accounting firms
(Continued)
• So far, more than 70 Chinese firms had set up
branches, member agencies and contact
bodies in other jurisdictions, while 12 large
firms had obtained the qualification for
auditing H-share companies.
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17. II. Progress in the Chinese
Accountancy Profession
5. Opening-up of the accounting market
• We opened up the accounting services market
immediately after the restoration of the
accountancy profession. At present, over 50
Chinese accounting firms have joined
international accounting networks or alliances.
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18. II. Progress in the Chinese
Accountancy Profession
5. Opening-up of the accounting market
(Continued)
• Each year the country sees more than 100
temporary accesses for cross-border practice
by foreign firms and a dozen of professional
accounting organizations overseas recruiting
members and organizing personnel training
within the territory of China.
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19. II. Progress in the Chinese
Accountancy Profession
6. Personnel training
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20. II. Progress in the Chinese
Accountancy Profession
6. Personnel training (Continued)
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21. II. Progress in the Chinese
Accountancy Profession
7. Development of the practicing standards
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22. II. Progress in the Chinese
Accountancy Profession
7. Development of the practicing standards
(Continued)
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23. II. Progress in the Chinese
Accountancy Profession
7. Development of the practicing standards
(Continued)
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24. II. Progress in the Chinese
Accountancy Profession
8. Regulation
• The CICPA has established a practicing quality
regulatory system for accounting firms, which
is based on periodic inspection with systemic
risk prevention and control as its
core, reflecting the independent regulatory
requirements in convergence with the
internationally accepted regulatory regime.
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25. II. Progress in the Chinese
Accountancy Profession
8. Regulation (Continued)
• An audit and regulatory system for financial
reporting of listed companies has been set up
covering the entire reporting process, which
plays an important role in safeguarding the
stability of the capital market and the interests
of the general public.
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26. II. Progress in the Chinese
Accountancy Profession
8. Regulation (Continued)
• In respect of practice quality, firms qualified
for businesses related to securities and futures
trading are directly inspected by the CICPA
every three years, and shall be regulated by
the China Securities Regulatory Commission
(CSRC) and the Ministry of Finance, P. R. China
(MOF);
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27. II. Progress in the Chinese
Accountancy Profession
8. Regulation (Continued)
• the rest of firms are inspected by local
institutes of certified public accountants every
five years under the CICPA guidance.
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28. II. Progress in the Chinese
Accountancy Profession
8. Regulation (Continued)
• The European Commission recognized the
equivalence in the audit regulatory systems
between China and the EU upon a resolution
adopted in early 2011.
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29. II. Progress in the Chinese
Accountancy Profession
9. Challenges facing the profession, the
development goals for the next five years
and the major tasks at the current time
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30. II. Progress in the Chinese
Accountancy Profession
9. Challenges facing the profession, the
development goals for the next five years
and the major tasks at the current time
(Continued)
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31. II. Progress in the Chinese
Accountancy Profession
9. Challenges facing the profession, the
development goals for the next five years
and the major tasks at the current time
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32. II. Progress in the Chinese
Accountancy Profession
Thank you!
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