China's Ministry of Finance and the Cyberspace Administration of China have released a series of interim measures for data security management by accounting firms, effective from October 1, 2024, with the aim of standardizing data processing activities, according to an announcement by the finance ministry on Friday.
Up to now, 35 accounting firms in China have joined or created 28 international accounting networks, and the profession has become increasingly close to foreign exchanges and cooperation. The provisional measures stipulate that audit working papers from accounting firms should be deposited in China in accordance with the relevant regulations.
Accounting firms are not allowed to include in engagement letters or contracts clauses such as domestic project information. If overseas regulators need to access the domestic audit working papers due to regulatory needs, they should obtain them through the corresponding cross-border regulatory cooperation mechanism in accordance with the law, and the corresponding audit working papers should go through the relevant approval procedures before leaving the country.
