In China, the history of social auditing can be traced back to the period of Beiyang warlord government after the Revolution of 1911. At that time, a group of patriotic accounting scholars devoted themselves to establishing the CPA profession in China to break the monopoly of foreign CPAs on CPA business. 19 18 In September, the Ministry of Agriculture and Commerce of Beiyang Warlord Government, as the competent department of CPA affairs, promulgated the first CPA regulation in the history of China, the Provisional Articles of Association of Accountants. In the same year, Mr. Xie Lin, a famous accountant, was approved as the first certified public accountant in China, and founded the first accounting firm in China-a formal accounting firm. By the time of Kuomintang rule, there had been a number of certified public accountants and accounting firms in China, mainly distributed in coastal cities such as Shanghai, Tianjin and Guangzhou.

Shortly after the founding of New China, due to the influence of the former Soviet Union and the implementation of the highly centralized planned economy model, the conditions for the survival of certified public accountants no longer existed, and the certified public accountant industry disappeared. Instead, it was replaced by a financial supervision system adapted to the planned economy model. ? In the 1980s, the Third Plenary Session of the Eleventh Central Committee of the Party established the policy of opening to the outside world and invigorating the country. China carried out economic restructuring and gradually established a socialist market economic system, resulting in the emergence of a social audit system and the recovery and development of certified public accountants and accounting firms. 1980 12. The Ministry of Finance promulgated the Interim Provisions on the Establishment of Accounting Consulting Organizations; 198 1 year 1 Shanghai Certified Public Accountants, the first accounting firm after the establishment of the social audit system, was established in Shanghai; 1in July, 986, the State Council promulgated the Regulations on Certified Public Accountants in People's Republic of China (PRC); 1988165438+10 the State Council promulgated the People's Republic of China (PRC) audit regulations, which improved and supplemented the social audit work. ?

Repair system

China's social audit system came into being in the early 20th century, and was restored and rebuilt in 1980s. 1980 12 The Ministry of Finance promulgated the Detailed Rules for the Implementation of the Income Tax Law of the People's Republic of China on Sino-foreign Joint Ventures, which stipulates that a joint venture, whether it is profitable or losing during the tax year, must submit its income tax return and final accounting statement to the local tax authorities within the prescribed time limit, and attach the audit report of a fair accountant registered in People's Republic of China (PRC) (China for short). This provision has created conditions for the restoration and reconstruction of the Comprehensive Peace Agreement system. In order to meet this need, the Ministry of Finance subsequently issued the Interim Provisions on the Establishment of Accounting Consulting Organizations, and China's CPA industry began to recover and start. Since then, the role of certified public accountants in social and economic life has become increasingly prominent. The business scope begins with audit verification and accounting consultation of foreign-funded enterprises, and gradually expands to audit verification, asset evaluation, tax agency, foreign exchange inspection, economic dispute mediation, judicial and economic case verification, and hiring enterprise accounting consultants to conduct feasibility studies on economic projects. ?

Perfect laws and regulations

1993 10 the fourth session of the eighth the National People's Congress Standing Committee (NPCSC) deliberated and passed the law of People's Republic of China (PRC) on certified public accountants, which established the principal position of social audit supervision of certified public accountants in the form of law. At the same time, the Company Law, the Enterprise Law, the Regulations on the Transformation of Operating Mechanism of Industrial Enterprises Owned by the Whole People, the Securities Law and other laws and regulations also put forward requirements for the practice of certified public accountants. 1In April, 1996, the State Council issued the Notice on Rectifying the Order of Accounting Work and Further Improving the Quality of Accounting Work, proposing to implement the auditing system of enterprise accounting statements in accordance with the law in order to effectively stop and prevent fraudulent use of accounting information and improve the quality of accounting statements. According to the development of certified public accountants in China, the CPA audit system of annual accounting statements of enterprises will be gradually implemented. Accordingly, the Ministry of Finance formulated the Interim Measures for Certified Public Accountants to Audit the Annual Accounting Statements of State-owned Industrial and Commercial Enterprises, and began to carry out the pilot audit of the annual reports of state-owned industrial and commercial enterprises. 1998 10 according to the requirements of institutional reform in the State Council, the Ministry of Finance has further changed its financial functions, and given full play to the role of certified public accountants in the financial accounting supervision of enterprises, and promulgated the Interim Measures for the Audit of Annual Accounting Statements of State-owned Enterprises, stipulating that from 1998 onwards, except for a few special industries (enterprises), the financial examination and approval system will no longer be implemented. At this point, the CPA audit system of annual accounting statements of state-owned enterprises in China was formally established. ?

Article 31 of the new Accounting Law stipulates that units that must be audited by certified public accountants according to relevant laws and administrative regulations shall truthfully provide accounting vouchers, accounting books, financial accounting reports and other accounting materials and relevant information to the entrusted accounting firm. This provision of the new "Accounting Law" further clarifies the status and role of social audit supervision of certified public accountants, and embodies the major changes in the accounting supervision system.

To sum up,1From June 5, 1998 to June 5, the Ministry of Finance issued the Interim Measures for Auditing Annual Accounting Statements of State-owned Enterprises according to the requirements of institutional reform in the State Council. So far, the audit system of annual accounting statements of state-owned enterprises in China has been formally established. ?