BEIJING, March 31 (Xinhua) -- China on Saturday began to solicit public opinions on a proposal to stop accreditation for accounting firms run under partnerships between Chinese and foreign companies.
The proposal is part of a draft amendment to the law on certified public accountants (CPAs).
According to the current law on CPAs, foreign accounting firms can establish cooperative firms with Chinese counterparts under government approval. However, the practice does not correspond with how accounting firms are organized, according to a statement made Saturday by the Legislative Affairs Office of the State Council, the Cabinet.
Under the laws and conditions of other countries, accounting firms should be established by CPAs rather than by institutions. The current law is thought not to tally with the localization strategy of internationally renowned accounting firms.
Therefore, the draft amendment says sino-foreign cooperative accounting firms set up before the amendment can keep their cooperative organization form, or they can make changes in accordance with the draft amendment.
The draft amendment has also suggested changes concerning accounting firms' qualifications, liabilities, and other items in accordance with China's commitment to the World Trade Organization.