China has recently urged state -owned enterprises to gradually suspend audit institutions related to the United States, and the impact of Ernst Young, the world's four major accounting firms, may have the largest impact.The company's revenue in about one -tenth is contributed by state -owned enterprises.
According to Bloomberg, China has recently urged some state -owned enterprises to gradually suspend the four major international accounting firms to ensure data security. At the same time, it is required to hire accountants in mainland China or Hong Kong after the contract expires.At present, this guidance is only applicable to state -owned enterprises, and it is unclear whether provincial state -owned enterprises and private enterprises will be included in it.
According to the data analysis of Bloomberg's data from the China Certified Public Accountants Association, in 2021, among the 98 central enterprises in China, up to a quarter of the enterprises are audited by the "Four Congress".%Come from these large enterprises, the highest proportion in the "four major", and less than 4%of KPMG (KPMG), Pacific Yongdao (PWC) and Deloitte each.
Howard Shatz, a senior economist of Rand, said that the higher the proportion of this business income, the deeper the impact, and the loss of the loss of central enterprise customers may have a chain reaction.
Sutz said, "If you lose Chinese state -owned enterprises (customers), you will lose companies operating around the world ... these companies are rooted in the wrong structure, so the audit costs are quite high."
