BEIJING, June 23 (Xinhua) -- A draft amendment to the law on certified public accountants was submitted on Tuesday to the ongoing session of the Standing Committee of the National People's Congress, China's top legislature, for a second deliberation.
The draft amendment focuses on stricter regulation, more targeted penalties and support for the healthy development of the sector.
It adds provisions barring audited entities and others from providing false accounting materials or documents to certified public accountants, and clarifies corresponding legal liabilities.
It also clarifies penalties for entities or individuals other than clients and audited entities that collude with or instigate accounting firms or certified public accountants to issue false reports.
The draft amendment stipulates that criminal liability shall be pursued in accordance with the law if violations constitute crimes.
It further refines rules on fines and business suspension, taking into account differences in the size and business scope of accounting firms, most of which are micro, small and medium-sized businesses.
The draft amendment says the country will strengthen integrity building in the sector, support efforts to improve audit quality, expand service networks and raise its level of standardization and professionalism, so as to promote the healthy development of this sector. ■
