Document of the General Office of Hainan Provincial People's Government
Qiong Fu Ban  No.5
Guiding Opinions of the General Office of Hainan Provincial People's Government on Improving the Business Environment of Accounting and Auditing Services in Hainan Province
To the people's governments of cities, counties, autonomous counties and units directly under the Provincial Government:
In order to further standardize and develop a modern professional service industry of accounting and auditing in the Province and create first-class business environment, we draft the following guiding opinions with the consent of the Provincial Government.
1. All departments (units), cities or counties should remove their backup pools for business qualification of accounting firms (the “firms”).
2. The Hainan Institute of Certified Public Accountants (“HICPA”) publishes the latest comprehensive firm evaluation information issued by the China Institute of Certified Public Accountants (“CICPA”), providing purchasers with options of accounting and auditing service providers. The firms (and branches) that have been approved by financial departments and qualified for practice can offer such services.
3. The purchaser may select and engage a firm at their own discretion if the service fee is less than RMB2 million. The purchaser should fairly and impartially select and engage a firm and should not request or accept goods or services unrelated to the purchased services.
4. The purchaser should select a firm through public bidding if the service fee is no less than RMB2 million. For special services, the purchaser may use single source procurement method to select a firm upon legal approval.
5. The purchaser should adopt the "comprehensive scoring method" to decide the bid winner if the firm is selected through public bidding. The number of firms participating in the bidding should be no less than three and should not be less than three times of the number of winning firms. The factors to be considered for selection should include the number of certified public accountants (“CPAs”), business income, professional competence, technical plans, price quotation, and administrative penalties and industry penalties in recent three years. For price score, the smaller the difference between the proposed quotation and the average quotation is, the higher the score the firm will obtain. Moreover, the price weight should be not less than 10% and no more than 20%.
The purchaser should adhere to the principles of objectivity, fairness and impartiality to evaluate the quality of services provided by the firm and inform the firm of the final evaluation results. The purchaser may decide whether to renew the contract with the firm for the same service within a certain period of time not exceeding three years based on the results.
6. The Province should expand the mutual evaluation and recognition of the CPA professional qualification system and the accounting professional title system, incorporate CPAs into the "Directory of Talent Development in Key Fields", and identify those with the qualification of international certified public accountant as high-level talents in Hainan.
7. The Department of Finance of Hainan Province and the HICPA evaluate and analyze the business environment of accounting and auditing services in the Province on an annual basis and timely improve related policies.
8. The Guiding Opinions may be referred to for the purchase of professional services relating to other industries in Hainan, such as evaluation and cost consulting.
General Office of Hainan Provincial People's Government
28 January 2019
Copy to: Departments of the Provincial Party Committee, General Office of the Standing Committee of the Provincial People's Congress, General Office of the Provincial Chinese People's Political Consultative Conference, Hainan Military, Provincial High People's Court, Provincial People's Procuratorate, units of central state offices in Hainan, people's organizations, colleges and universities, provincial party committees of other democratic parties and news agencies
Printed and issued by the Secretariat of General Office of Hainan Provincial People's Government on 30 January 2019