The Chinese finance ministry and security
watchdogs have introduced new regulations for firms auditing listed
companies, according to media reports.
The new rules require auditing firms to have
at least CYN80m ($13m) annual revenue, up from 16m, and a minimum
of 200 certified accountants to serve publicly traded
companies.
The media has reported that the Chinese
Ministry of Finance (MoF) said the rules are aimed at protecting
investor interests and improving audit quality for listed firms
following the accounting fraud scandals in 2010 and 2011, in which
many Chinese firms traded in Canada and US had their shares
suspended.
At the moment China has 53 accounting firms
qualified to audit listed firms, according to the China Securities
Regulatory Commission website.
Auditors must meet the new regulations by the
end of 2013.
