On Jan. 20, CHI GVT issued CPA independence standards for auditing.
CHI GVT issued the Chinese Institute of Certified Public Accountant (CICPA) independence standard no. 1 - requirements for independence in financial statement audit and review service, to improve audit quality; answered reporter's questions.
The opinion (#113957) puts forward the principle of improving the professional ability, independence, ethical standards and industry credibility of certified public accountants.
This standard has been formulated to implement the requirements of the opinions.
Overview of the Standard
Stipulates the purpose of formulation, defines independence and scope of application.
Stipulates basic requirements such as adherence to the principle of independence, the scope of public interest entities, as well as the period of maintaining independence.
Plus, the basic requirements for prohibition of assuming management responsibilities, communication with the client's management, and avoiding conflicts of interest.
Specifies scenarios such as fees, gifts and entertainment, economic interests, loans and guarantees, business/private relationships, to avoid compromising independence.
Stipulates the measures for any violation of the standards; transitional arrangements.
