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To guide accounting firms to implement the requirements of the 19th CPC National Congress and the series of speeches by General Secretary Xi Jinping and the working requirement of "being loyal, professional and earnest" by Vice Premier Liu He and keep enhancing occupational quality and practice quality, the Shanghai Stock Exchange (SSE) held the 1st "Training on Strengthening Intermediaries' Sense of Diligence and Responsibility" in Shanghai on November 21, 2018 under the guidance of the China Securities Regulatory Commission (CSRC). CSRC Chief Accountant Jia Wenqin, SSE Vice President Que Bo and relevant officials were present. A total of 75 certified public accountants from 38 accounting firms took part in the training.
Being a good gatekeeper for accounting information quality, strengthening the capacity of serving the capital market
Jia Wenqin said in the speech that the development of the capital market and that of the accounting firms with securities qualification are closely related and complementary. The development and institutional innovation of the industry of CPA (certified public accountant) will strongly promoted the improvement of the accounting information quality of the capital market and play a fundamental role in safeguarding the sound and stable development of the market while the flourishing of the capital market will boost the progress and prosperity of the CPA industry.
Jia Wenqin said that the CSRC has paid great attention to the regulation and service of accounting firms with securities qualification, the internal management and quality control system of accounting firms have kept improving, and their capacity of serving the capital market has been steadily enhanced. Meanwhile, accounting firms have some problems in quality control, risk assessment and the implementation of specific procedures. She put forward the following requirements on the upcoming audit of the 2018 annual report of listed companies. The first is to fully recognize the influence of the functioning of one's role on investor protection and earnestly perform the role as a gatekeeper for accounting information quality; the second is to fully understand professional risks in the capital market and optimize the quality control system; the third is to strengthen the implementation of key audit procedures and the audit in key areas and maintain a professional skepticism and due professional cautiousness; and the fourth is to make good audit for the implementation of the new accounting standards for business enterprises.
Fostering a sense of loyalty, diligence and responsibility and practicing socialist core values
Que Bo said in the speech that accounting firms with securities qualification, the major participants of the capital market, are the key to safeguard the justice, fairness and openness of the securities market. He came up with specific requirements on accounting firms. First, enhancing political stance and observing professional ethics. CPAs are esteemed professionals. They should regard the socialist core values that advocate prosperity, democracy, civility, harmony, freedom, equality, justice, the rule of law, patriotism, dedication, integrity and friendliness as a moral philosophy and a professional criterion, and understand what they can do and what they cannot do. Second, setting a goal and accepting supervision voluntarily. All accounting firms should make a summary of and draw experience from relevant punishment. They should accept supervision voluntarily, intensify precaution consciousness and reduce illegal behaviors, thus jointly creating a clean and upright market ecology. Third, sticking to the moral bottom line and intensifying responsibility. In the process of establishing the sci-tech innovation board and piloting the registration system by the SSE, accounting firms should give full play to their role as a gatekeeper of financial information and increase their capacity of serving the capital market.
Practicing the requirement of "being loyal, professional and earnest", enhancing the pertinence and effectiveness of the training
To enhance the training's effect, the SSE has made full use of its frontline advantage to gather regulatory resources, carefully design the training courses and promote the training brand of the capital market. During the 1-day training, experts from the CSRC, the SSE and securities companies were invited to analyze the latest regulatory situation, share classic cases and impart professional knowledge on accounting regulation. Besides, Wang Jinding, Deputy Dean of China Executive Leadership Academy (Pudong), was invited to deliver a speech on the "Requirements of the 19th CPC National Congress and the Series of Speeches by General Secretary Xi Jinping", encouraging CPAs to further improve their professional skills while enhancing their political stance, being diligent and responsible and regarding the socialist core values as the soul of highly-competent people. The trainees said that the training was of rich content and high pertinence, which helped to enhance their political consciousness, executive ability and business level. They would fully understand what they learned in the training, combine the study and publicity of the requirements of the 19th CPC National Congress and the practice of the socialist core values with the development of the industry, and stick to the bottom line to go further.
In recent years, the SSE has, under the guidance of the CSRC, contained the frontline regulation, risk prevention and control and market development in the training service while centering on the 3 tasks of "serving the real economy, preventing and controlling financial risks and boosting the financial reform". It has carried out 143 sessions of various trainings for listed companies and members in 2018, with over 25,000 trainee-times covered. And it has guided market participants to jointly practice the working requirement of "being loyal, professional and earnest", boosted the sound and stable operation of the capital market and taken the initiative to serve the general situation of the economic and social reform (growth) in China by clustering regulatory resources and setting up communication platforms.
The steady development of the capital market cannot do without the joint efforts of intermediaries including accounting firms. The SSE will actively fulfill and assume its function of frontline regulation and, by seizing information closure and paying equal attention to regulation and service, undertake the mission of the capital market's reform and innovation in the new era together with all market participants.
