Charter of the Chinese Institute of Certified Public Accountants
(Passed by the Fifth National Assembly of Delegates of CICPA on November 26th, 2010)
Chapter I General Principles
Article 1 The Chinese Institute of Certified Public Accountants (CICPA, hereinafter referred to as the Institute) has been founded in accordance with the Law of the People’s Republic of China for Certified Public Accountants. This charter has been enacted accordingly.
Article 2 The institute of certified public accountants, which is a professional organization consisting of certified public accountants (CPAs), has obtained the qualification of a juridical association in accordance with the relevant laws. The Institute is a national organization of CPAs. The institute of CPAs of a province, an autonomous region, or a municipality directly under the central government is the local organization of CPAs.
Article 3 The purposes of the Institute are: providing services, monitoring, regulating and coordinating. That is, with the construction of professional credibility and integrity as its guiding principle, the Institute is devoted to provide services to its members; to monitor the service quality and professional ethics of members; to regulate the accountancy profession according to relevant laws; to coordinate the relationship within and beyond the accountancy profession; to protect the interests of the general public and the legitimate rights of the CICPA members; and to promote the healthy development of the accountancy profession.
Article 4 The Institute should accept the supervision and guidance of the Ministry of Finance and the Ministry of Civil Affairs.
Chapter II Functions and Responsibilities
Article 5 The Institute has the following main functions and responsibilities:
1）To examine and approve applications for CICPA membership, regulate its members, and give guidance to the local institutes of CPAs on membership registration;
2）To formulate professional standards and rules for CPAs, and monitor and review their implementation;
3）To organize annual reviews of CPA qualification, and the practices of 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 Uniform CPA Examinations;
6）To organize and deliver training programs for members, and promote the development of professional talents;
7）To organize professional exchanges, conduct theoretical studies and provide technical support;
8）To give publicity to the accountancy profession;
9）To coordinate the relationship within and beyond the accountancy profession, support members to conduct their practice in line with laws 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 provide guidance to the local institutes of CPAs;
12）To conduct other relevant work stipulated by laws and regulations, and entrusted or authorized by government agencies.
Chapter III Members
Article 6 The membership of the Institute is classified into group members and individual members.
Accounting firms established under the law shall become group members of the Institute.
Persons who have passed the National Uniform CPA Examination and whose membership application has been approved, or those who have been qualified through the former evaluation procedures, shall become individual members of the Institute. Individual members are classified into practicing members and non-practicing members. Practicing members are those who have obtained the CPA practicing certificate in accordance with the laws.
Article 7 Individual members of the Institute are entitled to the following rights:
1）To vote and to stand for election in the Institute;
2）To appeal against discipline given by the Institute;
3）To participate in learning and training activities conducted by the Institute;
4）To participate in professional study and activities of exchanging experiences conducted by the Institute;
5）To obtain relevant materials from the Institute;
6）To put forward, through the Institute, suggestions and requests to relevant agencies;
7）To supervise the work of the Institute and give criticism and suggestions;
8）To supervise the Institute’s revenues and expenditures of membership dues;
9）To apply to leave the Institute according to the relevant regulations.
Article 8 Members of the Institute have the following duties:
1）To abide by the Charter of the Institute;
2）To implement the resolution made by the Institute;
3）To observe code of professional ethics;
4）To observe discipline of the Institute;
5）To accept the supervision and regulation of the Institute;
6）To pay membership dues in accordance with regulations;
7）To complete continuing professional education as stipulated by the Institute;
8）To conscientiously safeguard the reputation of the accountancy profession and uphold unity among the members;
9）To undertake the task entrusted by the Institute.
Apart from performing the duties stipulated above, practicing members of the Institute should also abide by the practice standards and rules of the profession.
Article 9 The group members of the Institute are entitled to the rights stipulated in article 7 except the first item and have the duties stipulated in article 8 except the seventh item.
Article 10 Should a member fail to perform their duty, or become no longer qualified, the Council may request them to leave the Institute or remove their name from the membership list.
Article 11 The regulatory rules on the Institute members are drafted by the permanent office of the Institute and take effect upon approval by the Council.
Article 12 Persons who have made great contributions to the accountancy profession and are well-known at home or abroad may be awarded honorary membership upon the recommendation from the relevant parties and approval by the Council.
Article 13 Eligible individual members of the Institute may be awarded fellow membership upon approval by the Council.
Chapter IV Assembly of Delegates
Article 14 The highest authority of the Institute is the National Assembly of Delegates. The Assembly meets every five years and may be moved ahead of schedule or postponed when necessary, and upon approval by the Council. However, the Assembly should not be postponed for more than one year.
Delegates may be chosen by election, consultation or special invitation. The previous Council shall be responsible for deciding the method of forming.
Article 15 The National Assembly of Delegates has the following major powers:
1）To formulate and amend the Charter of the Institute;
2）To elect the members of the Institute’s Council;
3）To discuss and determine the policies and tasks of the Institute;
4）To review and approve the work report of the Institute’s Council;
5）To formulate and revise the regulatory rules relating to CICPA annual membership dues;
6）To discuss other matters submitted by the Council to the Assembly for consideration.
Article 16 To convene the National Assembly of Delegates, there must be more than 2/3 of the delegates present and the resolutions can only become effective when more than 1/2 of the delegates present agree.
To revise the Charter of the Institute, there must be more than 2/3 of the delegates present and more than 2/3 of those present agree.
Chapter V Council and Executive Committee
Article 17 The National Assembly of Delegates shall elect members to form the Council. The term of office of the council members is five years. Council members can serve for more than one term.
Council meeting shall be held once a year and may be moved ahead of schedule or postponed when necessary.
Article 18 The Council shall be responsible to the National Assembly of Delegates. Its responsibilities are:
1）To propose the convening of the National Assembly of Delegates;
2）To elect members of the Executive Committee;
3）To elect the members of the leadership team;
4）To appoint the chief of the Secretariat;
5）To co-opt or replace Council members;
6）To review the structure of the Secretariat;
7）To consider and approve the annual work report of the Secretariat;
8）To discuss and approve the report on revenues and expenditures of the annual membership dues;
9）To discuss and approve the method of forming of next National Assembly of Delegates;
10）To discuss and approve the method of forming of council members of next term;
11）To approve the awarding of honorary membership and fellow membership of the Institute;
12）To manage other matters under its ambit.
Article 19 The Council elects a President, a certain number of Vice Presidents and Executive Directors. President, Vice Presidents, and Executive Directors have the same term of office as Council members.
The Council may engage several Honorary Presidents.
Article 20 If approved by the Council, there can be replacement or augmentation of the Council members or the Executive Directors, on the condition that there are changes in the work of the Council members or the Executive Directors, or replacements or augmentations are needed for other reasons.
Article 21 The Council meeting can only be held when more than 2/3 of the Council members are present, and the resolutions can only be effective when more than 1/2 of those members have agreed.
Article 22 The Executive Committee exercises the powers and duties of the Council when the Council is not in session.
The Executive Committee meeting can only be held when more than 2/3 of the Executive Directors are present, and the resolutions can only be effective when more than 1/2 of the Executive Directors have agreed.
Article 23 As the head of the Institute, the President shall convene and chair the Council meeting and the Executive Committee meetings, and supervise and examine the implementation of their resolutions. The Vice Presidents will assist with the work of the President.
Chapter VI Execution Office
Article 24 The Institute establishes a Secretariat, which is the execution office of the Institute.
The Secretariat is responsible for implementing the resolutions and decisions made by the Assembly of Delegates, the Council and the Executive Committee. It is also in charge of the daily operation of the Institute.
Article 25 The Institute has a Secretary General and several Deputy Secretary Generals, who are recommended by the Ministry of Finance and approved by the Council.
The Secretary General is the legal representative of the Institute.
Article 26 The Secretary General takes charge of the daily operation of the Secretariat. The Deputy Secretary Generals assist with the work of the Secretary General. The proposal of setting up the functional departments in the Secretariat should be put forward by the Secretary General and then be reviewed by the Council before being reported to the Ministry of Finance for approval.
Chapter VII Special Committees and Professional Committees
Article 27 There shall be a number of special committees under the Council, which are the special working organs assisting the Council to discharge its responsibilities, and accountable to the Council.
There shall also be a number of professional committees, which take charge of the professional and technical problems encountered during the development of the profession, and which are accountable to the Council.
The plan for setting up, revising and drawing up of specific duties and operational rules of the Special and Professional Committees, as well as the appointment and dismissal of the members of the committees, will be put forward by the Secretary General of the Institute for Council’s approval.
Chapter VIII Local CPA Institutes
Article 28 The CPA institutes of a province, an autonomous region or a municipality directly under the central government are local organizations of the CICPA. The Charter of Local Institutes of CPAs shall be formulated by the local Assembly of Delegates in accordance with the relevant laws and regulations, and reported to the Institute and competent authorities of the local governments for records.
Article 29 The establishment of CPA institutes under the provincial and autonomous region level will be approved by the above-mentioned local institutes of CPAs, and put on record to the Institute. Their operation and limits of authority should be in accordance with the relevant laws and regulations and the requirements of the local institutes of CPAs.
Chapter IX Financial Resources
Article 30 The financial resources of the Institute come from:
1）Membership dues;
2）Donation;
3）Subsidy from the government;
4）Revenue from the operating activities and services provided by the Institute;
5）Other revenues.
Article 31 The Institute shall collect membership dues according to management measures of membership dues passed by the National Assembly of Delegates.
Membership dues are classified into individual membership dues and group membership dues; individual membership dues are classified into practicing and non-practicing membership dues.
Article 32 Membership dues of the Institute shall be used for the purposes of the functions and responsibilities of the Institute stipulated in the Charter and for the development of the accountancy profession.
Article 33 The Institute shall set up a financial accounting management system in accordance with the law and ensure the authenticity and integrity of the accounting data.
Chapter X Supplementary Rules
Article 34 Termination of the Institute should be raised by the Council, and be agreed by more than 2/3 of the delegates of the Assembly.
Article 35 The full name of the Institute is “The Chinese Institute of Certified Public Accountants”, abbreviated as CICPA. The location of the head office of the Institute is in Beijing.
Article 36 This Charter shall come into effect on the day it is passed by the National Assembly of Delegates.
