On March 5, 2024, the China Note Association held a regulatory meeting with the Accounting Department of the Ministry of Finance, the Supervision and Evaluation Bureau and the Accounting Department of the China Securities Regulatory Commission to conduct collective supervision interviews with 8 accounting firms that have undertaken the audit of the 2023 financial statements of listed companies for the first time. Relevant responsible comrades of the Beijing, Zhejiang, Shandong, Henan, and Shenzhen Institutes of Certified Public Accountants attended the talks.
At the meeting, eight accounting firms, including Beijing Dahua International, Beijing Guofu, Beijing Yatai International, Zhejiang Kexin, Zhejiang Zhonghui, Shandong Shuntian Xincheng, Henan Shouzheng Innovation, and Shenzhen Dahua International, reported on the risk assessment and response of the audit projects undertaken by listed companies, the allocation of the project team, the arrangement of project quality review, the arrangement of audit fees and the construction of quality management system. The Accounting Department of the Ministry of Finance, the Supervision and Evaluation Bureau, the Accounting Department of the China Securities Regulatory Commission, and the China Note Association respectively gave risk warnings to 8 accounting firms and put forward clear requirements for engaging in ** business.
The China Note Association and the relevant regulatory units to undertake the audit of the annual report of listed companies for the first time to the accounting firm to conduct an interview, is to implement the first important measure on strengthening the decision-making and deployment of financial supervision and the Ministry of Finance Party Group on promoting the quality and efficiency of financial supervision, aiming to establish a collaborative mechanism for the supervision of the CPA industry, form a joint regulatory force, guide and urge the accounting firm to improve the internal risk prevention and control mechanism and improve the audit quality.
In order to strengthen the self-discipline and supervision role of industry associations, since the revision and release of the "Working Rules for the Audit and Supervision of Annual Reports of Listed Companies" in 2021, the China Note Association has successively interviewed 200 accounting firms engaged in ** service business, involving 295 listed companies. According to statistics, the proportion of non-standard opinions issued by the interviewed accounting firms is significantly higher than the industry average, indicating that the risk awareness of the relevant accounting firms has been significantly enhanced through the annual report audit supervision interview, which is conducive to better playing the role of accounting firms in practice supervision.
The meeting emphasized that all accounting firms should adhere to the guidance of socialism with Chinese characteristics in the new era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Opinions of the General Office on Further Regulating the Order of Financial Auditing and Promoting the Healthy Development of the CPA Industry (Guo Ban Fa 2021 No. 30), the Opinions on Further Strengthening Financial and Accounting Supervision of the General Office and other documents, focus on improving audit quality, keep the bottom line of integrity, and build a solid red line of laws and regulations. Adhere to the concept of risk-oriented auditing, practice independently, objectively, impartially and standardly, earnestly perform the practice supervision duties of accounting firms, and contribute to the high-quality development of the industry and better serve the Chinese-style modernization.
The collective interview also prompted the timely filing of the first-class service business and the filing of the change of audit institutions of listed companies.