Guangxia Case to Be Under Strict Investigation

The recent Guangxia (Yinchuan) case has become a hot issue at the nationwide certified accountants meeting, said Li Yong, secretary general of Chinese Institute of Certificate Public Association (CICPA) in an interview that the related departments are making an overall investigation into the case. If any certified accountant companies or accountants were involved in illegal conducts in this case, CICPA will mete out punishment in accordance with the related laws and regulations.

After the case came up, it aroused a great hubbub. CICPA paid great attention to the case and formed a team to probe into it. If any malpractice or other sever misdeeds occurred, related personnel should plead no innocence in shaking off the responsibilities.

Li said that current laws and regulations on accounting have provided criterion for listed companies' accounting and auditing work. Once any problem occurs, evading responsibility would not be permitted. In addition, instigated by some gains for local governments and listed companies, the working environment for certified accountants is not very sound. However, whether certified accountants can engage in their work independently, honestly and objectively is determined by their self-discipline. So enhancing accountants' moral standard is of utmost importance.

According to insiders, the current Zhongtianqin Certified Public Accountants Company which is in charge of Guangxia's audit work was merged in 2000 from Zhongtian (Shenzhen) Certified Public Accountants with Tianqin (Shenzhen) Certified Public Accountants. And in the year 2000, the newly-established company provides services for 60 domestically listed companies with over 100 certified accountants, totaling 300 working staffs. The revenue of the company reached 40 million yuan, being one of large certified accountant companies in China. In recent years, the company provided audit reports without reserve for the Ningxia-based Guangxia (Yinchuan) Industry and in the fiscal years 1999 and 2000 the certified accountants were Liu Jiarong and Xu Linwen.



By PD Online staff member Li Yan


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