Comparative Accounting

Comparative Accounting

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The accounting profession in China exhibits some unique features During the development process , accounting and auditing took different paths as a result of the society not holding this profession with high esteem . Accounting firms focused mainly on companies utilizing foreign investments and their sponsorship came from the Ministry of Finance whereas auditing firms worked under the State Administration of Audit (SAA ) and dealt primarily with domestic companies (Holt Donnithorne 1998 . Unlike in United Kingdom (U .K

) where a good legislative and judicial environment existed during the early stages of accounting development , in China , such environment never existed and is currently developing (Lin Chan , 2000

The recent economic programs adopted by China have stimulated the growth of accounting profession in the country . The establishment of two stock exchange firms provided immense support to the rapid growth of accounting activities in the country . There are also clear indications that Soviet-style accounting principles are being substituted with the Anglo-American one (Shen , 2010 . Moreover , in setting the Chinese accounting standards , the Ministry of Finance is using international accounting practices and this has resulted to some of the Chinese accounting standards being consistence with the Sarbanes-Oxley Act Similar to the Sarbanes-Oxley Act , Chinese standards also require auditor rotation every five years (Shen , 2010

The Mexican business environment comprises of features which are common to other developing nations . Despite the economy experiencing persistent payments balance problems , efforts by the government to ensure that the...