Law of the People's Republic of China on Certified Public Accountants (2014 Amendment)

Law of the People's Republic of China on Certified Public Accountants (2014 Amendment) Law of the People's Republic of China on Certified Public Accountants (Adopted at the Fourth Meeting of the Standing Committee of the Eighth National People's Congress on October 31, 1993, and amended at the Tenth Session of the Standing Committee of the Twelfth National People's Congress on August 31,2014 according to the Decision of the Standing Committee of the National People's Congress on Amending Five Laws Including the Insurance Law of the People's Republic of China) Contents Chapter I General Provisions Chapter II Examination and Registration Chapter III Business Scope and Rules Chapter IV Public Accounting Firm Chapter V Institute of Certified Public Accountants Chapter VI Legal Liability Chapter VII Supplementary Provisions Chapter I General Provisions Article 1 This Law is formulated in order to bring into play certified public accountants' role of attestation and service in social economic activities, strengthen administration of affairs of certified public accountants, protect public interests and the lawful rights and interests of investors, and promote the healthy development of the socialist market economy. Article 2 A certified public accountant is a professional who has obtained the certificate of certified public accountant according to law and is commissioned to offer auditing, accounting consultancy and other accounting services. Article 3 A public accounting firm is an organization which is established according to law and undertakes to provide professional services of certified public accountants. A certified public accountant who provides services shall join a public accounting firm. Article 4 The institute of certified public accountants is a public organization composed of certified public accountants. The Chinese Institute of Certified Public Accountants is the national organization of certified public accountants and institutes of certified public accountants in provinces, autonomous regions and municipalities directly under the Central Government are local organizations of certified public accountants. Article 5 The financial department under the State Council and financial departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall supervise and guide the activities of certified public accountants, public accounting firms and institutes of certified public accountants according to law. Article 6 Certified public accountants and public accounting firms in performance of services must abide by the law and administrative rules and regulations. Certified public accountants and public accounting firms shall carry out their business independently and impartially according to law and shall be protected by law. Chapter II Examination and Registration Article 7 The State shall adopt a unified national examination system for certified public accountants. The measures for the unified national examination shall be formulated by the financial department under the State Council and such examination shall be organized and conducted by the Chinese Institute of Certified Public Accountants. Article 8 Chinese citizens who have graduated from colleges or universities or who have earned the professional title of accountant or an intermediate or higher professional title in a relevant field of study may apply for attendance at a unified national examination for certified public accountants. Those who have earned the professional title of accountant or senior professional titles in a relevant field of study may be exempted from examination in certain subjects. Article 9 Whoever has passed the unified national examination for certified public accountants and has engaged in auditing business for more than two years may apply to the institute of certified public accountants of the province, autonomous region or municipality directly under the Central Government for registration. Except the situations specified in Article 10 of this Law, the institute of certified public accountants that has received the application shall permit the applicant to register. Article 10 If the applicant is involved in any of the following circumstances, the institute of certified public accountants that has received the application shall not permit the applicant to register: (1) if the applicant does not have the full capacity for civil conduct; (2) if the applicant was punished for a crime and the period between the date of completing the criminal punishment and the date of application for registration is less than five years; (3) if the applicant was subjected to an administrative sanction, or removed from office or a more serious sanction, due to grave mistakes in financial, accounting, auditing, enterprise management or other economic activities, and the period between the date of the decision for such punishment or sanction and the date of application for registration is less than two years; (4) if the applicant was punished with the revocation of the certificate of certified public accountant, and the period between the date of the decision for such punishment and the date of application for registration is less than five years; or (5) other circumstances under which registration shall not be approved as stipulated by the financial department of the State Council. Article 11 The institute of certified public accountants shall submit the namelist of applicants whose applications are approved to the financial department of the State Council for the record. If the financial department of the State Council finds any registration approved by an institute of certified public accountants to be inconsistent with the provisions of this Law, it shall notify the relevant institute of certified public accountants to cancel the registration. If an institute of certified public accountants decides not to approve the registration of an applicant in accordance with Article 10 of this Law, it shall notify the applicant in writing within 15 days after the decision is made. If the applicant disagrees with the decision, he or she may, within 15 days after receiving the notification, apply to the financial department of the State Council or the financial department of the people's government of the province, autonomous region or municipality directly under the Central Government for reconsideration. Article 12 The applicants who are permitted to register shall be granted by the institute of certified public accountants an unified certificate for certified public accountants issued by the financial department of the State Council. Article 13 If anyone who has acquired the certificate of a cer......