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China's Assistant Minister of Finance, Li Yong, Wednesday called for the enhancing of professional ethics within the accounting services to rekindle public trust in the sector.
Addressing the second day of the 16th World Congress of Accountants in Hong Kong, Li said the accounting community is facing a crisis of confidence in its professional integrity and a comprehensive approach needs to be adopted to address the issue.
Li, who is also president of the Confederation of Asian & Pacific Accountants (CAPA), remarked that continuous efforts are required to improve professional standards.
As time goes on and the economy develops, accounting practices will face an ever more complicated economic situation and more challenges, while at the same time the general public's expectations for accountants will rise, he added.
Li said there are three most pressing tasks that need to be tackled to raise professional ethics. They are conscientiously serving the public interest, striving for professionalism and retaining independence in practice.
He pointed out that in the professional code for accountants, the preservation of independence is key and the precondition for achieving objectivity and fairness.
Accounting organizations in different countries and regions should work towards a common consensus, while at the same time establishing and improving corresponding standards based on their own situations when addressing the issue of accountants' independence, he said.
The Chinese Institute of Certified Public Accountants (CPAs) issued Guidelines on Professional Ethics for Chinese CPAs, said Li. These guidelines prohibit accounting firms in China from simultaneously preparing both the financial statement and auditing of a listed company, added Li.
CAPA will closely examine those factors related to professional ethics, so as to be able to take effective measures to maintain the independence of a practice, enhance professional ethics and restore public confidence in the accounting industry, said Li.
(China Daily November 21, 2002)
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