New Budget Act: Accounting System Should Turn to Accrual Basis

　　The 10th meeting of the 12th Standing Committee of the National People’s Congress will hold the fourth review of the draft amendment of Budget Act of China, and it’s estimated that the chance of passing the fourth review is good. Many experts indicated that full-overage budget system still needs the support of government’s accounting system reform.

　　CPA Law Is Going to Be Amended

　　As the big four have finished the localized transformation, the draft changed the approval authority of setting up an accounting firm to “being approved by the financial sector of people’s government of province, autonomous region or municipality directly under the Central Government”, and meanwhile, deleted the relevant provisions of approving the establishment of Chinese-foreign cooperative public accounting firms, and also the provision that it shall submit to the financial department of the State Council for approval for foreign accounting firms to set up their resident representative offices in China.

　　CTA Exam Being Cancelled Does CPA Become More Authoritative?

　　Compared with simple CTA, CPA seems more like an inter-disciplinary talent. Tax examination should be an important part of the examination of financial reports, so integrating simple CTA into CPA does not mean the extinction of CTA as a single part, but give full play to CPA as a whole.

　　China Institute of Internal Auditors Publishes Methods of Evaluating Internal Audit Quality

　　Quality evaluation of internal audit is carried out by organizations in two forms, internal evaluation and external evaluation, selectively according to conditions. Organizations should set up a system of evaluating internal audit quality, and carry out quality evaluation of internal audit regularly. And the external evaluation should be conducted by China Institute of Internal Auditors or its examination and approval agency.