The Chinese Institute of CPAs Holds a Special Report on Hot Industry Issues

On June 4, 2015, the Chinese Institute of Certified Public Accountants (CICPA) held an industry hot topic seminar, providing explanations on topics such as the reform of international auditing (reporting) standards and the government procurement "competitive consultation" method. Approximately over 1,000 people participated, including CICPA cadres at all levels, heads of accounting firms with securities qualifications, participants of the industry "Leading Talent Class" and the heads of their respective firms, and participants of the industry Party School Class (6th cohort), at the CICPA main venue and branch venues of local institutes. CICPA Vice President and Secretary-General Chen Yugui attended and delivered a speech. Deputy Secretary of the Party Committee of the Chinese CPA profession Yang Chenhui presided over the seminar.

Chen Yugui stated that the purpose of holding the industry hot topic seminar was to facilitate thorough communication on major hot issues within the profession. He pointed out that, against the backdrop of the international convergence strategy for CPA professional standards, the reform of international auditing (reporting) standards is of great significance for improving audit service quality and the professional competence of CPAs. The "Interim Measures for the Administration of the Government Procurement Competitive Consultation Procurement Method" stipulates a new government procurement method, providing a good opportunity to improve government procurement methods, address the industry's problem of unfair low-price competition, and expand new business areas for firms in acting as agents for government procurement. He expressed the hope that industry comrades would attach great importance to these two tasks, become familiar with the policies, and promote their implementation.

Chen Yugui remarked that under the new circumstances of the "Four Comprehensives" strategic layout, the profession faces enormous development opportunities brought by the Belt and Road Initiative's infrastructure investment, government accounting system reform, development of the financial sector, and "Internet Plus". It also faces unprecedented social responsibility in serving the comprehensively deepening reforms, as well as huge challenges in the total number and insufficient professional competence of talent, along with increased risk and liability. He hoped that industry comrades could fully recognize the situation facing the profession, strengthen confidence in its development, and enhance their sense of social responsibility and self-improvement. At the same time, he urged them to be vigilant in times of peace, fully understand and address the "six major risks" currently confronting the profession: First, the expansion of firm scale, increase in non-audit services, and diversified development, while growing business, also heighten the risk of violating the independence principle. Second, the revision of the Securities Law and the reform of the stock issuance registration system will increase the civil liability risk of the profession. Third, the development of internet technology poses a huge challenge to traditional auditing techniques, and the profession faces the risk of being left behind by the internet. Fourth, the rapid development of the securities markets represented by ChiNext and the New Third Board, on the one hand, brings opportunities for firms to expand business, and on the other hand, increases the audit risk of the profession. Fifth, as the country vigorously promotes anti-corruption and integrity building, the practice within the industry of paying business referral fees, commissions, etc. to clients or relevant parties not only violates the ethical requirements of CPAs but has also become an integrity risk for the profession. Sixth, the quantity and quality of talent in the profession still cannot meet the needs of reform, development, and market demand, and the profession continues to face the risk of insufficient professional competence. He called on industry comrades to pay high attention and respond seriously.

Chen Yugui set forth requirements for the industry's leading talents. He stated that, after 10 years of development, the industry's leading talents have achieved tremendous accomplishments in career development, professional competence enhancement, and broadening international horizons. He expressed the hope that the industry's leading talents would enhance their service awareness, further intensify efforts to give back to the profession and society, and live up to the title of "leading talent".

Chen Yugui also mobilized participation in the Confederation of Asian and Pacific Accountants (CAPA) Conference and the Cross-Strait Four Regions Accountancy Exchange Conference to be held within the year. He hoped that local institutes would make good organizational arrangements, encourage CPAs to actively attend the conferences, strengthen communication and exchanges with overseas counterparts, and expand cooperation space.