No. 5 of Various Observations on Accounting Professional Qualification Exams: Exam Purpose

　　Accounting Accreditation Examination (work license) is a stepping stone in the accounting career, 81.65% of voters participating in the examination chose the purpose of work requirement. While among the various licensing examinations, the most significant purpose for voters participating in the examination is to enhance their professional level and to prove their own ability. For example, although 32.25% participants of the CPA exam voted for work requirements, the proportion falls far behind the purposes of proving one’s own ability (54.36%) and improving one’s professional level (44.27%)

　　Two Securities Exchanges Punished for Annual Verification Reports

　　In the verification it is found that the net assets reached -6.4398 million in the Financial Statements of CAICPA in 2012, not meeting the eligibility conditions of “net assets of not less than 5 million yuan” for securities qualified accounting firms. CHW Limited Liability Partnership (now renamed as CHW CPA Limited Liability Partnership) issued on these financial statements the standard unqualified audit report. After adjustments, its actual net assets at the end of 2012 are expected to be -1.2818 million yuan, still not reaching the requirement. In accordance with legal provisions, CAICPA initiatively returned its certificate for security and future business in December, 2013.

　　Asset Management Company Conspire with Assessing Agency　Traps Hidden in SME Financing

　　According to a company’s in Sichuan, CIC Heng Hui (Beijing) Assets Management Co., LTD. designated a third-party assessing agency when the Sichuan company came for financing. The Sichuan company was charged pretty high assessing fee, while the financing has not been completed yet. The assessment result turned into merely “a piece of paper” without any practical use. Due to the intense situation in financial market, enterprise financing becomes urgent and difficult, causing this phenomenon growing once again.

　　Small Enterprises’ Report Show High Costs in Tax Compliance

　　The report shows that, on VAT, the small and micro enterprises have a tax burden (VAT / income) ratio roughly the same with that of the medium and large enterprises; however, when it comes to the tax rate, small and micro enterprises have a much heavier burden than the medium and large enterprises, nearly twice as the large and medium enterprises.

　　TOPWAY Biggest Insider Transaction: How Come?

　　An asset restructuring caused the secret spread of the insider information. Although the final amount of money involved did not reach 100 million, fifteen people were transferred to the public security organization, fifteen people were given administrative penalties, making the number of people the insider transaction of TOPWAY involving the biggest among similar cases in recent years.