Introduction to The Chinese Institute of Certified Public Accountants

2014-07-08 14:10:56   Hits: Times

CICPA Overview

The Chinese Institute of Certified Public Accountants (hereinafter referred to as CICPA) is an organization under the guidance of the Ministry of Finance and the Council. Founded in November 1988 in accordance with “The Law of the People’s Republic of China for Certified Public Accountants” and “The Regulations for the Registration and Administration of Social Organizations,” the CICPA exercises the professional management and service functions by virtue of the powers vested in “The Law of the People’s Republic of China for Certified Public Accountants,” stipulated by The Charter of the Chinese Institute of Certified Public Accountants and assigned by the Ministry of Finance.

The main responsibilities of the CICPA are: (1) To examine and approve applications for CICPA membership, and provide guidance to the local institutes of CPAs on membership registration; (2) To develop professional standards and rules for CPAs, monitor and review their implementation; (3) To conduct annual quality assurance program for individual CPAs and accounting firms; (4) To formulate professional regulatory rules and take disciplinary actions against those with non-compliant activities; (5) To organize National Unified CPA Examinations; (6) To organize and deliver training programs for members; (7) To organize professional exchanges, conduct theoretical research and provide technical support; (8) To give publicity to the accountancy profession; (9) To promote relationships within and beyond the accountancy profession, support CPAs to adhere to the laws in conducting their practices and safeguard the legitimate rights and interests of members; (10) To represent the Chinese accountancy profession in carrying out international co-operations and exchanges; (11) To give guidance to the work of local institutes of CPAs; (12) To conduct other relevant work stipulated by laws and regulations, and entrusted or authorized by government agencies.

CICPA strives for better professional service, supervision, regulation and coordination for members, as well as establishing and improving its professional management and services. Namely, the assurance services system for servicing the economy and society; the examination assessment system for competence; the registration system for high entry standards; the professional standards system for international convergence; the continuing professional development system for lifelong learning; the supervision and inspection system for moral integrity and quality of practice; the international cooperation system for the practice of accounting firms developing international relationships and operations; the development strategy system for the promotion of stronger and more competitive accounting firms and the profession capacity-building system for better service, supervision, regulation and coordination.

At present, there are 250,000 Chinese people with CPA qualifications and over 300,000 people working in accountancy profession.

By 31st March 2014, CICPA has 8,238 group members (accounting firms), of which, 40 are qualified to conduct security and future-related businesses and 11 are authorized to conduct H-share audit. CICPA has had nearly 200,000 individual members, of whom, 98,208 are CPAs, 684 are senior members and 17 are honorary members. Those CPAs provide professional services to over 3.5 million enterprises and public institutions, including 2,537 public companies. The revenue of the accountancy profession in 2013 reached RMB 56.3 billion Yuan, and its growth rate has maintained in double digits for several years.

CICPA became a member of the Confederation of Asian and Pacific Accountants (CAPA) and the International Federation of Accountants (IFAC) in October 1996 and May 1997 respectively, and has developed friendly cooperation and communications with more than 50 professional accounting organizations in other jurisdictions.

The highest authority of the CICPA is the National Assembly of Delegates, through which the Council is elected. The Council elects a President, a certain number of Deputy Presidents and the Executive Committee. Special Committees and Professional Committees are set up under the Council. The Executive Committee exercises the powers and duties of the Council when the Council is not in session. The secretariat is the operational office of the CICPA.

So far, there are 12 Special Committees and 2 Professional Committees under the Council. The Special Committees include the Strategy Committee, the IT System Committee, the Auditing Standards Committee, the Code of Ethics Committee, the Finance Committee, the Disciplinary Committee, the Appeal and Member Rights Committee, the Education and Training Committee, the Registration Administration Committee, the Practicing Liability Appraisal Committee, the Steering Committee for Governance of Accounting Firms, the Editorial Committee of The Chinese CPA Magazine. 2 Professional Committees are the Professional and Technical Guidance Committee and the Integrated Reporting Committee.

The CICPA secretariat has 15 departments, including 3 General Offices, Examination Department (also the Office of the CPA Examination Committee of the Ministry of Finance), Registration Department, Continuing Professional Development Department, Quality Assurance DepartmentProfessional Standards and Technical Guidance Department, Research and Development Department, Editorial Office of Chinese CPA Magazine, International Affairs Department, Human Resources Department, Finance Department, Information Technology Department and Administration Department.