Measures for the Administration of the List of Seriously Dishonest Subjects in the Certified Public Accountants Industry

Measures for the Administration of the List of Seriously Dishonest Subjects in the Certified Public Accountants Industry

Order of the Ministry of Finance of the People's Republic of China
(No. 116)

The Measures for the Administration of the List of Seriously Dishonest Subjects in the Certified Public Accountants Industry, as deliberated and adopted at the executive meeting of the Ministry of Finance, are hereby issued and shall come into force on January 1, 2025.

Minister: Lan Fo'an
November 3, 2024

Measures for the Administration of the List of Seriously Dishonest Subjects in the Certified Public Accountants Industry

Article 1 These Measures are developed for the purposes of regulating the management of the list of seriously dishonest subjects in the certified public accountants (hereinafter referred to as “CPA”) industry, punishing accounting firms and CPAs for major illegal and untrustworthy behaviors, establishing and improving the management system for the list of seriously dishonest subjects in the CPA industry, and promoting the construction of the credit system in the CPA industry.
Article 2 These Measures shall apply to the inclusion, removal and management of the list of seriously dishonest subjects in the CPA industry (hereinafter referred to as the “list of seriously dishonest subjects”).
Article 3 The Ministry of Finance shall make overall planning for, guide and supervise the management of the national list of seriously dishonest subjects, and be responsible for the management of the list of seriously dishonest subjects involved in the securities service business of accounting firms and CPAs and other specific business related to the public interests as stipulated by laws and administrative regulations.
In addition to the provisions of the preceding paragraph, the finance departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter referred to as the “provincial finance departments”) shall be responsible for the management of the list of seriously dishonest subjects within their respective administrative regions.
Article 4 Under any of the following circumstances, the Ministry of Finance or provincial finance departments (hereinafter referred to as “finance departments at or above the provincial level”) shall be included in the list of seriously dishonest subjects in accordance with regulations and implement joint punishment:
(1) A CPA is subject to penalty of suspending business for 12 months.
(2) A CPA is subject to penalty of revocation of the certificate of CPA.
(3) A CPA is held criminally liable according to the law for illegal practice.
(4) An accounting firm is subject to penalty of suspending business for 12 months.
(5) An accounting firm is subject to penalty of revocation of its practice license.
(6) An accounting firm is held criminally liable according to the law for illegal practice.
(7) Refusing to implement the punishment decision within the prescribed time limit, and the circumstances are serious.
(8) Being punished for undertaking the business in the CPA industry as provided for in Article 14 of the Law of the People's Republic of China on Certified Public Accountants without approval.
Article 5 Under the circumstances as stipulated in items 1, 2, 4, 5, and 8 of Article 4 of these Measures, when the finance department at or above the provincial level makes a decision on administrative penalty, it shall make a decision on whether to include the subject in the list of seriously dishonest subjects.
In addition to the provisions of the preceding paragraph, under the circumstances specified in Article 4, the finance department at or above the provincial level may separately make a decision on including the subject in the list of seriously dishonest subjects.
The finance department at or above the provincial level shall make a decision on including the subjects in the list of seriously dishonest subjects and issue a written decision. A written decision shall set forth the cause, basis, tips on administrative measures for dishonesty, conditions and procedures for removal and relief measures, and be served on the parties in accordance with the provisions.
Article 6 Before the finance department at or above the provincial level makes a decision on including a subject in the list of......