China focuses on expanding non audit services
August 4, 2010
The accounting profession in China is developing at breakneck speed with aggregate fee revenues in China rocketing by a staggering multiple of 400 from RMB 80m in 1993 to RMB 32,000m in 2009.
The Chinese Institute’s Secretary General Chen now sees developing international markets and expanding non-audit services as the key future challenges for Chinese profession. Speaking recently he commented “Despite the rapid progress the profession has made, mainland accounting firms remain geared towards the domestic market, and they now desperately need to internationalize for one purpose: to grow in tandem with mainland enterprises seeking accounting, consulting and advisory services for the exploding number of overseas investments and acquisitions they have been making in recent years”. He continued saying “The profession is too reliant on assurance, which brings in 90 percent of total revenue and its 92,000 CPAs have yet to boost their ability to offer non-assurance services. We hope to equalize the ratio of assurance and non-assurance revenue to 50:50 in eight years
In the light of this strategy for change, Kreston International Executive Director, Jon Lisby, was delighted to accept the invitation from Secretary Chen to speak at a CICPA nationwide seminar. Jon’s presentation was entitled “Strategies for the development and marketing of non audit services” and was delivered at the CICPA’s impressive new headquarters in Beijing before an audience of some 4,500 CPA’s and accounting students with the majority attending live video link from regional centres.
Joyce Chao, Chief Representative of the ICAEW in China commented “It was excellent that Jon was invited to participate in this nation-wide CPD training programme. The inclusion of experienced international speakers on timely topics is really of tremendous value to Chinese CPAs who have been in practice for many years as well as current students”
Jon says “It was a great honour for Kreston International to be asked to speak and clearly a unique opportunity to further raise the profile of Kreston International in China. Kreston is currently ranked 9th largest international accounting network by the IAB survey. If the profession can build non-audit services to the levels generally achieved in the West, it will mean that our Chinese accounting firms can expect further revenue growth of 60-80% over the next few years”.