Strengthening Accountability in China’s Accounting System

The Ministry of Finance has issued a comprehensive set of new regulations aimed at strengthening accountability within China’s accounting system and improving the overall quality of accounting information. Released as the Opinions on Further Consolidating Accounting Work Responsibilities and Strengthening the Implementation of Accounting Laws and Regulations and the National Unified Accounting System, the document sets out a unified framework for clarifying responsibilities, improving compliance, and reinforcing the foundational role of accounting in China’s market economy.

The Role of Accounting in Economic Governance

Accounting serves as a fundamental pillar of the socialist market economy, influencing both micro-level investment decisions and macroeconomic policymaking. As the regulatory framework has expanded in recent years, China’s national unified accounting system has become increasingly sophisticated. However, challenges remain: accounting responsibilities are often fragmented, boundaries between roles are unclear, and the implementation of statutory obligations varies across industries. These issues have contributed to inconsistencies in accounting practices and, in some cases, weakened the integrity of financial reporting.

A Comprehensive List of Responsibilities

The newly issued Opinions consolidate relevant regulations into a clear list of accounting responsibilities, providing unified guidance for enterprises, accounting personnel, professional service providers, and regulatory bodies. According to the Ministry of Finance, this consolidation enhances legal awareness, strengthens accountability, and improves the consistency and authority of the national accounting system. By ensuring that accounting information remains comparable across business entities, the new framework supports an environment where financial transparency is both expected and enforceable.

A Seven-Part Framework for Strengthening Compliance

Structured into seven core sections, the Opinions focus on ensuring the authenticity and completeness of accounting data. The framework clarifies statutory responsibilities, reinforces the return of accountability to relevant units, and outlines consequences for non-compliance. Key themes include strengthening internal accounting management, guiding personnel to fulfill their obligations, reinforcing the role of accounting service institutions, and improving regulatory oversight by government departments. Industry associations are also encouraged to enhance self-discipline and contribute to stronger supervisory mechanisms.

Ensuring the Integrity of Economic and Financial Activities

One of the central objectives of the Opinions is to prevent financial fraud by clarifying responsibility at every stage of economic activity. The regulations explicitly prohibit the use of fabricated transactions or materials, collaborative financial fraud between entities, and the outsourcing of financial statement preparation to auditing firms. By reiterating these principles, the Ministry aims to preserve the independence of accounting firms and uphold the integrity of financial reporting. Experts note that these provisions provide stronger barriers against fraud and are essential for improving the credibility of accounting information.

Clarifying Responsibilities Across Organizational Roles

The Opinions define the specific responsibilities of each stakeholder within an organization. The principal leader of a unit is accountable for the authenticity and completeness of its accounting data. The chief accountant or head of accounting must assist in organizational oversight, while accounting staff are expected to carry out accounting and supervision duties in accordance with the law. The regulations also extend to personnel involved in business operations, asset management, and the use of economic resources, emphasizing that accounting accountability begins at the source of economic activities. This strengthened approach aims to eliminate opportunities for internal fraud and reinforce the chain of responsibility.

Strengthening the Role of Professional Service Providers

Beyond internal corporate responsibilities, the Opinions also outline expectations for accounting service institutions such as accounting firms and certified public accountants. These institutions are called upon to fully exercise their role in social auditing and uphold high standards of professional conduct. By enhancing practice quality and reinforcing accountability, the regulations support a more robust and reliable accounting services sector. Additionally, new requirements for accounting software providers emphasize data quality, security, and accessibility, contributing to the responsible development of accounting informatization.

Broad Consultation and National Significance

The drafting of the Opinions began in December 2024, followed by an extensive comment period launched in June 2025. Feedback from stakeholders across industries was actively integrated into the final version. According to the Ministry of Finance, the issuance of these new rules is an important step in advancing the country’s governance according to law, strengthening financial supervision, and supporting the development of a unified national market. By establishing a coordinated and clearly defined accounting responsibility system, the new regulations aim to enhance resource allocation, promote orderly market operations, and strengthen national governance capabilities.

Building a High-Quality Accounting Environment

As China continues to advance its economic modernization, the integrity of accounting information remains critical to supporting high-quality development. The new regulatory framework is designed to ensure that accounting practices operate within a clear, unified, and enforceable structure. Through stronger oversight, clearer responsibilities, and enhanced industry self-discipline, the Ministry of Finance seeks to cultivate an accounting environment that safeguards transparency, strengthens compliance, and reinforces trust across the broader economic system.