Core Viewpoint - The implementation of the "Independence Standards for Certified Public Accountants" marks a new phase in the institutional regulation of independence in China's CPA industry, emphasizing the importance of independence in audit practices [1][2]. Group 1: Regulatory Changes - The new independence standards are designed to address issues identified in industry regulation, including prohibiting CPA firms from preparing financial statements for audit clients, thereby eliminating conflicts of interest [2]. - The standards incorporate both domestic practices and international guidelines, with some provisions being stricter than international norms, reflecting China's commitment to combat financial fraud in capital markets [1][2]. Group 2: Impact on the Industry - The reform aims to transform the CPA industry towards greater professionalism and standardization, establishing independence as a non-negotiable baseline for the industry [2]. - By converting the subjective notion of "substantive independence" into quantifiable compliance standards, the new regulations are expected to enhance the credibility of audits and optimize the market ecosystem [2].

Core Viewpoint - The implementation of the "Independence Standards for Certified Public Accountants No. 1" marks a new phase in the institutionalization of independence regulation in China's CPA industry, addressing the critical issue of auditor independence which has been a significant factor in audit failures [1][2] Group 1: Regulatory Changes - The new independence standards are designed to integrate with existing laws and regulations while reflecting China's unique characteristics [1] - The standards combine advanced international guidelines with domestic practices, with some provisions being stricter than international norms, demonstrating China's commitment to combatting financial fraud in capital markets [1] Group 2: Specific Provisions - The standards include explicit prohibitions against accounting firms preparing financial statements or notes for audit clients, effectively severing the conflict of interest [2] - There is a strict ban on providing audit services on a contingent fee basis, which aims to eliminate potential compromises to independence from an economic perspective [2] Group 3: Industry Impact - The reform is expected to drive the CPA industry towards greater professionalism and standardization, with independence becoming a non-negotiable industry baseline [2] - This transformation is seen as a necessary response to industry pain points, aimed at restoring audit credibility and optimizing the market ecosystem [2]