ABSTRACT
This chapter reviews the development of the accounting profession in China, the contents of The Certified Public Accountants Act 1993 and the issuing of auditing standards. The Certified Public Accountants' Act 1993 includes seven chapters and forty six articles. The seven chapters cover: general rules; examination and registration; scope of business and ethical rules; Certified Public Accountant (CPA) firms; Institution of CPAs; legal liabilities; and supplementary provisions. Three years after the first Chinese Accounting Standard issued in 1993, the first batch of Chinese Independent Auditing Standards was issued and became effective on 1 January 1996. This auditing standard system includes four different kinds of standards: Independent Auditing Standards; Professional Conduct Standards; Quality Control Standards; and Continuing Professional Education Standards. Chinese Institute of Certified Public Accountants (CICPA) is controlled by the Ministry of Finance (MOF) and Chinese Association of Certified Public Auditors (CACPA) is backed up by Audit Administration Department (AAD).
