Letter on Soliciting Public Opinions on the Notice on Further Regulating the Integration Activities and Strengthening the Practicing Quality Control of Accounting Firms with Securities Business Qualifications

关于就进一步规范证券资格会计师事务所整合行为、加强执业质量控制的通知征求意见的函

Promulgating Institution: China Securities Regulatory Commission; General Office of the Ministry of Finance

Promulgating Date: 10/31/2013

颁布机关: 财政部办公厅; 中国证券监督管理委员会办公厅

颁布时间: 10/31/2013

To finance departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government, the Finance Commission of Shenzhen Municipality, bureaus of the China Securities Regulatory Commission in all provinces, autonomous regions, municipalities directly under the Central Government and cities separately designated in the State plan, commissioner's offices of the China Securities Regulatory Commission in Shanghai and Shenzhen, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and all accounting firms with securities business qualifications,

With a view to further regulating the integration activities of accounting firms with securities business qualifications, improving the quality of securities and futures-related business practices, raising the quality of accounting information on the capital market, and protecting the interests of investors, the Ministry of Finance ("MOF") and the China Securities Regulatory Commission ("CSRC") have drafted the Notice on Further Regulating the Integration Activities and Strengthening the Practicing Quality Control of Accounting Firms with Securities Business Qualifications (Draft for Comments). Please organize the solicitation of opinions among relevant entities, and submit feedback to the Department of Accounting of the MOF and the Department of Accounting of the CSRC by November 20, 2013.

Contact persons of the MOF: Yang Guojun Wang Jing

Tel: 010-68552934 68552536 68553012 (Fax)

Mailing address: Division of Certified Public Accountants of the Department of Accounting of the MOF at No. 3 Nansanxiang, Sanlihe, Xicheng District, Beijing

Zip code: 100820

E-mail addresses: yangguojun@mof.gov.cnwangjing1123@ mof.gov.cn

Contact persons of the CSRC: Yi Xiongjun Zhou Shiyang

Tel: 010-88060405 88061292 88061344 (Fax)

Mailing address: Room 1505, Tower A, Focus Place, 19 Jinrong Street, Xicheng District, Beijing

Zip code: 100033

E-mail addresses: yixj@csrc.gov.cn zhou_shy@csrc.gov.cn

General Office of the Ministry of Finance

General Office of the China Securities Regulatory Commission

October 31, 2013

Appendix:

Notice on Further Regulating the Integration Activities and Strengthening the Practicing Quality Control of Accounting Firms with Securities Business Qualifications (Draft for Comments)

With a view to further regulating the integration activities of accounting firms with securities and futures-related business qualifications (hereinafter referred to as the "Accounting Firm with Securities Qualifications"), improving the practicing quality of securities and futures-related business (hereinafter referred to as the "Securities Business"), raising the quality of accounting information on the capital market, and protecting the interests of investors, relevant issues are hereby notified as follows:

  各省、自治区、直辖市财政厅（局），深圳市财政委员会，证监会各省、自治区、直辖市、计划单列市监管局，上海、深圳证券监管专员办事处，上海、深圳证券交易所，证券资格会计师事务所:

  为了进一步规范证券资格会计师事务所整合行为，提升证券期货相关业务的执业质量，提高资本市场会计信息质量和保护投资者利益，财政部、证监会草拟了《关于进一步规范证券资格会计师事务所整合行为、加强执业质量控制的通知（征求意见稿）》。请组织征求相关单位意见，并于2013年11月20日前将意见反馈至财政部会计司和证监会会计部。

  财政部联系人:杨国俊 王晶

  联系电话:010-685529346855253668553012（传真）

  通信地址:北京市西城区三里河南三巷三号财政部会计司注册会计师处

  邮政编码:100820

  电子邮箱:yangguojun@mof.gov.cnwangjing1123@mof.gov.cn

  证监会联系人:易雄军 周诗洋

  联系电话:010-880604058806129288061344（传真）

  通信地址:北京市西城区金融大街19号富凯大厦A座1505

  邮政编码:100033

  电子邮箱:yixj@csrc.gov.cnzhou_shy@csrc.gov.cn

  财政部办公厅

证监会办公厅

  2013年10月31日

  附件:

  关于进一步规范证券资格会计师事务所整合行为、加强执业质量控制的通知（征求意见稿）

  为了进一步规范具有证券期货相关业务资格的会计师事务所（以下简称证券资格会计师事务所）整合行为，提升证券期货相关业务（以下简称证券业务）的执业质量，提高资本市场会计信息质量和保护投资者利益，现就有关事项通知如下:

1. It is imperative to standardize the integration activities of Accounting Firms with Securities Qualifications, and reinforce the management of their branches.

Where an Accounting Firm with Securities Qualifications is under investigation by the relevant finance department or securities regulatory authority due to issues of practicing quality, its chief partner and persons in charge of relevant practices under investigation shall not be transferred to other accounting firms during the investigation period, and the said accounting firm shall not engage in integration activities by merging with another accounting firm during the investigation period.

An Accounting Firm with Securities Qualifications shall regulate the acts of its partners joining other accounting firms by prescribing relevant restrictive clauses in the partnership agreements or by other means. Where certain partners withdraw from the partnership, they shall not take relevant business opportunities with them to join other accounting firms.

Subsequent to integration, an Accounting Firm with Securities Qualifications shall speed up the improvement of the governance mechanism featuring "clear division of powers and duties, scientific decision-making, robust management and harmonious development", carry out compliant operations under a unified brand, and establish and improve an integrated internal management system characterized by coordinated and unified personnel management, financial management, business management, technical standards and information systems, so as to ensure that the post-integration accounting firm achieves substantive unity in terms of human resources policies, financial systems, etc.

The Ministry of Finance ("MOF") and the China Securities Regulatory Commission ("CSRC") shall conduct regular verification over the integrated management situations of an Accounting Firm with Securities Qualifications. A branch thereof that fails to maintain integrated management shall be banned from Securities Business and be ordered to make rectification within the prescribed time period. Where the branch still fails to implement integrated management within the prescribed time period, the MOF and the CSRC shall suggest the examination and approval authority of the branch to revoke the administrative licensing granted to the branch.

An Accounting Firm with Securities Qualifications shall establish an assessment system for Securities Business carried out by its branches, and conduct unified assessment on a yearly basis. Assessment results shall be submitted to the MOF and the CSRC for record-filing by January 15 of each year after being approved by the partners' meeting or the meeting of the partner management committee.

Where a newly-established branch is to engage in Securities Business, the relevant Accounting Firm with Securities Qualifications shall go through assessment and record-filing procedures in accordance with the preceding Paragraph before the said branch practices Securities Business.

An Accounting Firm with Securities Qualifications shall publicly disclose, via the homepage of its website, the list of its branches engaging in Securities Business, as well as the client lists and business types of the Securities Business carried out by such branches in the preceding year.

    一、规范证券资格会计师事务所整合行为，强化分支机构管理

  证券资格会计师事务所因执业质量问题接受财政部门或证券监管部门调查的，调查期间，会计师事务所首席合伙人和接受调查的相关业务负责人不得转入其他会计师事务所，该会计师事务所不得与其他会计师事务所合并整合。

  证券资格会计师事务所应当通过在合伙协议中设定相关限定性条款等方式，对合伙人加入其他会计师事务所的行为予以规范。部分合伙人退伙的，不得携带业务加入其他会计师事务所。

  证券资格会计师事务所发生整合行为后应当加快完善“权责清晰、决策科学、管理严格、和谐发展”的治理机制，在统一的品牌下规范运作，建立健全人员管理、财务管理、业务管理、技术标准和信息系统协调统一的内部一体化管理制度，确保会计师事务所在人事政策和财务制度等方面做到实质统一。

  财政部、中国证监会定期对证券资格会计师事务所一体化管理情况进行核查，未能保持一体化管理的分所不得从事证券业务，限期整改，规定期限内仍不能实行一体化管理的，建议分所审批机关撤回分所设立行政许可。

  证券资格会计师事务所应当建立分支机构执行证券业务的评估制度，每年统一进行评估，评估结果经合伙人会议或合伙人管理委员会会议批准后，在每年1月15日前报财政部和中国证监会备案。

  对于新设立分支机构从事证券业务的，证券资格会计师事务所应在其执行证券业务前按照前款要求进行评估和备案。

  证券资格会计师事务所应在网站首页公开披露从事证券业务的分支机构名单，以及其上年度执行证券业务的客户名单和业务类型。

2. It is required to regulate the quality control mechanism of each Accounting Firm with Securities Qualifications, and improve the quality of securities and futures-related business.

An Accounting Firm with Securities Qualifications shall improve its quality control review mechanism, effectively play the role of quality control review, and fine-tune the difference resolution mechanisms related to quality control.

An Accounting Firm with Securities Qualifications shall improve the quality control review process, designate persons of sufficient professional competence as project quality control reviewers, and ensure that they participate in the entire review process of major issues and are able to discuss all major issues with the partners in charge of Securities Business projects. Quality control reviewers shall be served by partners.

An Accounting Firm with Securities Qualifications shall establish and improve the difference resolution mechanisms between quality control reviewers and project partners, and between project teams and technical support departments, and issue business reports only after quality control review has been completed and all major differences have been resolved. Relevant processes and conclusions shall be documented in detail in audit working papers.

Where persons other than partners of Securities Business projects and quality control reviewers are involved in determining audit opinions, their involvement shall be clearly documented in audit working papers, and the signatures and opinions of relevant persons shall be properly kept.

Where an Accounting Firm with Securities Qualifications absorbs practitioners from other accounting firms as key members of its branches or departments that engage in Securities Business, the said accounting firm shall assign its senior partners as the heads of such branches or departments. In addition, the said accounting firm shall designate its original partners as the quality control reviewers for the projects of Securities Business undertaken by the absorbed practitioners within two years, and conduct internal inspection of all Securities Business undertaken by newly-joined partners.

As regards the Securities Business newly undertaken by an Accounting Firm with Securities Qualifications, if the accounting firm originally undertaking the Securities Business is currently put on file for investigation or has been subject to administrative punishment in the past three years, or if the project partners or quality control reviewers previously undertaking the Securities Business have been subject to administrative punishment or been subject to administrative regulatory measures on three or more occasions in the past three years, the Accounting Firm with Securities Qualifications shall assign persons who have been serving as partners for three years or longer as the project partners and quality control reviewers of the Securities Business.

    二、规范证券资格会计师事务所质量控制机制，提升证券期货相关业务质量

  证券资格会计师事务所应当健全质量控制复核机制，切实发挥质量控制复核的作用，完善质量控制相关的分歧解决机制。

  证券资格会计师事务所应当完善质量控制复核流程，委派具备足够专业胜任能力的人员担任项目质量控制复核人，并保证其全程参与重大事项复核，能够与证券业务项目合伙人讨论所有重大事项。质量控制复核人应由合伙人担任。

  证券资格会计师事务所应当建立健全质量控制复核人与项目合伙人之间、项目组与技术支持部门之间的分歧解决机制，在质量控制复核完成和所有重大分歧解决后，才能出具业务报告，相关过程和结论应在审计工作底稿中详细记录。

  证券业务项目合伙人、质量控制复核人以外的人员参与确定审计意见的，应在审计工作底稿中明确记录，并保存有关人员的签字和意见。

  证券资格会计师事务所吸收其他会计师事务所的执业人员，并以其作为执行证券业务的分支机构或部门的主要组成部分，应委派本所资深合伙人担任该分支机构或部门的负责人;被吸收人员承做的证券业务，两年内均应委派本所原合伙人担任项目质量控制复核人，并对新加入合伙人承做的所有证券业务进行内部检查。

  证券资格会计师事务所新承接的证券业务，原执行该证券业务的会计师事务所正被立案调查或三年内受到行政处罚的，或原执行该证券业务的项目合伙人、质量控制复核人三年内受到行政处罚或被采取行政监管措施三次及以上的，应当委派本所担任合伙人三年以上的人员作为该证券业务的项目合伙人和质量控制复核人。

3. It is a must to standardize the management of staff independence, and effectively strengthen the construction of internal governance mechanisms.

An Accounting Firm with Securities Qualifications shall strengthen the management of staff independence, specify the requirements on the independence of the persons participating in Securities Business, establish and improve the independence management system for its staff members and their immediate family, including the record-filing of basic identity information, registration of investment information, inspection of independence and handling of irregularities, and conduct regular inspection of the independence of the personnel engaging in Securities Business.

An Accounting Firm with Securities Qualifications shall specify the requirements on the professional ethics and professional competence of certified public accountants ("CPA") who practice Securities Business. Where the said accounting firm is to assign partners who, due to issues of practicing quality, have been subject to administrative punishments or been subject to administrative regulatory measures on three or more occasions in the past three years as project partners or quality control reviewers of Securities Business, it shall fully assess the appropriateness of such personnel assignment, and record relevant reasons in writing.

An Accounting Firm with Securities Qualifications shall regularly assess the quality of its practices, and disclose via its website the list of CPAs qualified to sign on Securities Business reports.

An Accounting Firm with Securities Qualifications shall adopt a partner income distribution method and promotion mechanism conducive to the improvement of practicing quality, and shall not manage its branches, departments and partners by contracting, charging management fees or other similar methods.

An Accounting Firm with Securities Qualifications shall, according to the needs of business quality control, deploy its entire workforce and manage its Securities Business in a uniform manner. It shall conduct risk assessment of the Securities Business undertaken according to unified standards, and uniformly assign project partners and quality control reviewers who are professionally competent.

An Accounting Firm with Securities Qualifications shall reinforce professional technical support mechanisms, beef up professional technical support capacity, and specify consulting standards and procedures, so as to ensure that Securities Business be provided with necessary technical support.

An Accounting Firm with Securities Qualifications shall establish and improve its internal accountability mechanism, specify the issues and procedures of accountability, as well as the handling measures, and hold relevant parties accountable in a timey lanner for acts in violation of laws and regulations, practicing standards, regulatory requirements and internal management rules.

An Accounting Firm with Securities Qualifications shall strengthen the quality control of its Securities Business strictly in accordance with this Notice. The MOF and the CSRC shall pay particular attention to the compliance with this Notice by Accounting Firms with Securities Qualifications from the perspectives of securities qualifications management, on-site inspection, routine regulation, etc., and take appropriate action against violations of this Notice depending on the severity of the circumstances.

This Notice shall come into effect on the date of printing and distribution.

    三、规范员工独立性管理，切实加强内部治理机制建设

  证券资格会计师事务所应当加强员工独立性管理，明确对参与证券业务人员的独立性要求，建立健全员工及其直系亲属的基本身份信息报备、投资信息登记、独立性检查和违规行为处理的独立性管理制度，并定期对从事证券业务人员进行独立性检查。

  证券资格会计师事务所应当明确注册会计师执行证券业务的职业操守和专业胜任能力要求。委派近三年因执业质量问题受到行政处罚或被采取行政监管措施三次及以上的合伙人担任证券业务项目合伙人、质量控制复核人时，应充分评估其适当性，并书面记录相关理由。

  证券资格会计师事务所应当定期进行执业质量评估，并在事务所网站披露签署证券业务报告的注册会计师名单。

  证券资格会计师事务所应当采用有利于提高执业质量的合伙人收益分配方式和晋升机制，不得采用承包、收取管理费用或类似方式管理分所、部门和合伙人。

  证券资格会计师事务所应当根据业务质量控制的需要，对全所人员统一调配，对证券业务统一管理。对承接的证券业务，应按统一标准进行风险评估，统一委派具有专业胜任能力的项目合伙人和质量控制复核人。

  证券资格会计师事务所应当强化专业技术支持机制，加强专业技术支持力量，明确咨询标准与程序，确保证券业务能够获得必要的技术支持。

  证券资格会计师事务所应当建立健全内部问责机制，明确问责事项、程序和处理措施，对违反法律法规、执业规范、监管要求和内部管理的行为及时问责。

  证券资格会计师事务所应严格按照本通知要求加强证券业务质量控制。财政部和中国证监会将在证券资格管理、现场检查、日常监管等方面重点关注证券资格会计师事务所执行本通知规定的情况，并视情节轻重对违反本通知的情形作出相应处理。

  本通知自印发之日起施行。