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China Steps Up Supervision of Accountancy to Avoid Fraud
China will beef up supervision of certified public accountant firms to avoid fraud, according to the Ministry of Finance.
Li Yong, assistant minister of Finance said that the ministry is conducting a nationwide inspection on the firms' implementation of accounting laws.
He said that accounting forms and their accountants who are found providing false financial figures will be severely punished.
Some of the recent scandals about accounting firms suggest that China's certified public accountant firms lag far behind their foreign counterparts in aspects such as personnel quality, risk control and operation, Li said.
The ministry has found that some government departments used their power to influence the work of professional service accounting companies or even set up such companies, through which they use their administrative power to pursue economic benefits, Li pointed out.
China has been endeavoring to sever ties between government departments and these companies to ensure independent and unbiased operation of the accounting, which is expected to play an important role in maintaining the country's economic order and improving the economic efficiency.
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