Is It Reasonable For Mal M? Cpa To Be Punished For Temporary Practice In Mainland China?

On May 20,2018,the SX Provincial Department of Finance issued a notice stating that the Swedish Malm? Certified Public Accountant accepted an audit from a Swedish company to audit the execution of the relevant contract of SX Locke Co.,Ltd.Upon request,Malm? Certified Public Accountants shall apply for an interim license in accordance with the Interim Provisions on the Temporary Implementation of Auditing Services by Overseas Certified Public Accountants in Mainland China(Accounting [2011] No.4).However,the Office did not receive an application for a temporary practice license from Mainland China by Malm? Certified Public Accountants,nor did it receive any relevant approval from other provincial finance departments for copying the province's interim practice business with Malm? CPA.Therefore,according to the Interim Provisions on the Temporary Implementation of Auditing Business by Overseas Certified Public Accountants in Mainland China,Malm? Certified Public Accountants was ordered to stop practicing its auditing activities in the Mainland of China,and its interim practice applications will not be accepted within five years.After receiving the notice of punishment,Malm? Certified Public Accountants commissioned a Chinese law firm to respond to the lawsuit.Based on the perspective of judicial accounting defense,this paper is based on the case of real situation,from the perspective of defending Malm? Certified Public Accountants,in-depth analysis of the validity of Malm? CPA's temporary practice in mainland China.This paper firstly sorts out the relevant literatures on the practice supervision,cross-border supervision and non-audit business of accounting firms at home and abroad,and determines the necessity of this paper.Secondly,it introduces the domestic and foreign supervision policies for overseas accounting firms.This paper introduces in detail the development process of China's supervision regulations on the temporary practice of overseas accounting firms and compares and analyzes the existing regulations.Furthermore,in the context of this policy,it introduces in detail the specific circumstances of Malm? CPA's practice punishment.The analysis of the case revolves around two controversial points.First,it combines China's existing regulations and rules to analyze whether the nature of business is China's statutory auditing business,and whether the punishment for practicing is correct.Second,it is based on the judgment of impractical punishment.The analysis of the possibility,mainly from the three aspects of the implementation of the financial information implementation procedures,internal audit business outsourcing and judicial accounting consulting services;Finally,the conclusion that Malm? Certified Public Accountants' imprisonment in China is not correct and cited Implications for regulators and firms.This article takes this case as a starting point and provides relevant business experience for the practice of other overseas accounting firms in China.It also reminds relevant financial and legal departments of China to pay attention to the cross-border supervision of the accounting industry,establish and improve the construction of laws and regulations for accounting firms,and further We will improve the supervision policies for the practice of overseas firms.At the same time,it is recommended that overseas accounting firms strengthen the standard system to learn and communicate with institutional departments to accelerate the construction of international talents.With a view to economic globalization and complex and diversified international business,it is reasonable to resolve and avoid possible regulatory conflicts,strengthen international trade cooperation and development,and promote the healthy development of China's economic market.