Home' A Plus Magazine : July 2013 Contents July 2013 45
Chen Yugui is deputy president and secretary general
of the CICPA. The article is adapted from a speech given
at the Cross-straits, Hong Kong S.A.R. and Macau S.A.R.
Accounting Profession Conference on 4 September 2012.
interpretation and understanding in applying
the new standards.
The differences between professional
standards in various jurisdictions are
reducing and may eventually disappear
along with the popularization of international
standards. Nonetheless, the enormity
in undertaking the implementation of
international standards will exist for a long
time. Supervision upon implementation
will have a long way to go. We believe the
First, there should be a principle-based
supervision, which focuses on the analysis
of the substance of the specific business
transactions and avoids a clause-based
approach to compliance.
Second, it is important to respect
and value professional judgment in the
supervision of the work of both accountants
and auditors, by avoiding dictating the
Third, the legal and regulatory framework
applicable to the accounting profession will
need to be enhanced on a continuous basis.
Supervision should respect the rules of
the market economy. The more congruous
the legal and regulatory framework is with
the rules of the market economy, the more
effective the implementation of international
standards can be. Otherwise, it would be a
case of cutting the feet to fit the shoes.
A qualified accountant is largely dependent
on his or her capability to apply professional
judgment. Accounting is a profession
because of this capability. It is also the
precondition for internalization of both
accounting and auditing standards.
Accountants should, therefore, firstly
have the consciousness to make professional
judgment and recognize that they are
deemed to be experts with the duty to make
Second, it is essential for professional
accountants to develop the confidence to
make sound professional judgment. An
accountant should be considered as having
authority in the application of accounting
principles and professional judgment.
Third, professional accountants need
to maintain continuous self-development,
especially with the improvement of the
skill of professional judgment. One of the
most important skills to have is a profound
understanding of modern accounting
and auditing theories and international
standards, as well as an understanding of the
substance of a specific business transaction
(substance over form).
Finally, it is necessary to maintain self-
discipline. Professional judgment is not
only an authority, but a responsibility. An
accountant should maintain integrity and
keep his or her commitment. Someone who
garners respect can then be called a true
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