Policy & RegulationSignal
China's Ministry of Finance Pledges Tougher Accounting Oversight
China's Ministry of Finance plans to intensify oversight and strictly penalize accounting and auditing violations across three priority focus areas.
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The Brief
China's Ministry of Finance will maintain strict regulation and zero tolerance while stepping up inspections and investigating accounting and auditing violations, China News Service reported citing Sun Feng, deputy director of the ministry's Supervision and Evaluation Bureau.
The authority will prioritize investigating major cases, focusing closely on serious financial fraud with severe social impact, thoroughly establishing accounting and auditing responsibilities, and applying legal penalties to enhance deterrence.
Supervisory measures include a three-year action campaign from 2026 to 2028, conducting accounting information quality checks against fabricated transactions and inflated profits, while inspecting accounting firms and asset appraisal agencies for forged evidence and false reports.
The ministry also plans an interdepartmental supervision mechanism with authorities overseeing development, public security, financial regulation, and securities regulation to share leads and achieve administrative, civil, and criminal accountability.
China context
Between 2023 and 2025, the ministry conducted three consecutive years of inspections, penalizing 356 enterprises and 188 corporate leaders, along with 729 accounting firm instances and 1896 certified public accountants.
Key Takeaways
- 1The finance ministry will strictly penalize accounting and auditing violations through zero tolerance and enhanced oversight.
- 2A three-year initiative from 2026 to 2028 will target financial fraud, fabricated business, and false audit reports.
- 3Interdepartmental coordination with public security and financial regulators will integrate administrative, civil, and criminal accountability mechanisms.
Sources
- 中国财政部：严查会计审计违法违规行为 — China News Service · 11/11/2026