China’s Ministry of Finance: Strictly investigate accounting and auditing violations

China News Service, Beijing, November 11 (Reporter Zhao Jianhua) Sun Feng, deputy director of the Supervision and Evaluation Bureau of the Ministry of Finance of China, said in Beijing on the 11th that he will adhere to "strict supervision and zero tolerance", increase supervision and inspection efforts, and seriously investigate and deal with accounting and auditing violations. In the next step, we will focus on the following three aspects:

Seriously investigate and handle major and important cases. Keep a close eye on major financial fraud cases that have a negative impact on society, conduct in-depth investigations to verify accounting and auditing responsibilities, deal with and punish them in accordance with laws and regulations, and strengthen warnings and deterrents.

Continue to increase supervision and inspection efforts. Carry out a three-year action to improve the quality and efficiency of financial accounting supervision (2026-2028), maintain a high-pressure stance against financial fraud, and continue to increase supervision and inspection efforts. We will carry out solid inspections on the quality of accounting information, severely crack down on illegal activities such as fictitious economic businesses, inflated profits, whitewashing of statements, etc., and promote the effective implementation of the national unified accounting system. Strengthen the supervision of the professional quality of accounting firms, asset appraisal agencies and other intermediary institutions, focus on investigating and dealing with forged audit evidence, collusion in fraud, meter reading audits, issuance of false reports and other issues, and effectively purify the professional environment.

Create a coordinated and joint supervision mechanism. Establish and improve a coordinated and efficient cross-departmental supervision working mechanism, establish a clue transfer mechanism with relevant departments such as development and reform, public security, financial supervision, securities supervision, etc., strengthen coordination and cooperation in information communication, collaborative supervision, achievement sharing, joint credit punishment, etc., promote the realization of administrative, civil, and criminal three-dimensional accountability, and improve supervision efficiency.

At the press conference held in Beijing that day, Sun Feng also introduced that from 2023 to 2025, the Ministry of Finance organized and carried out special actions on financial supervision for three consecutive years, organizing local regulatory bureaus and local financial departments to conduct accounting information quality inspections on 18,000 companies, and on Huarong Asset Management Company , Zitian Technology and other 356 companies and 188 company leaders were issued administrative penalties; 7,010 accounting firms were inspected for professional quality, and 729 accounting firms and 1,896 certified public accountants were imposed administrative penalties on PricewaterhouseCoopers Zhongtian, Beijing Yatai International and other 729 accounting firms.