A Case Analysis On Laos' Regulation System Of CPA

Various undertakings have made great progress by strengthening exchanges and cooperation with foreign countries in My Motherland - Lao People's Democratic Republic since 1986 when the "reform and opening up" policy was implemented. Especially in the accounting: In 1989, Laos was helped by the French Government and the World Bank to amend the relevant law in Business Accounting. Laos' accounting is essentially the same as France accounting, but many problems exist: No accounting standards and auditing standards, laws and regulations on the Institute of Certified Public Accountants are not perfect. From the end of 2007 to early 2008 Laos revised the Accounting Law and the Auditing Law. But Laos has not still issued accounting principles and auditing standards. And laws and regulations on the Institute of Certified Public Accountants have not been changed.In this actual demand, the paper will come to the direction of the audit reform, by comparison the contents of Lao Association of Registered Accountants and the audit with China's, and this is also the problem to be resolved in the development of Laos future accounting regulatory which is of very clear and practical significance. At the same time, we objectively analyst the difference between the Laos' and China's accounting regulatory system to give myself views on the future Laos' development of the auditing supervision system ,on the basis of learning from Chinese the experience and practices. And I first introduced the draft of the audit guidelines being developed by the Lao Institute of Certified Public Accountants in 2008 to Chinese counterparts. The Laos's three important new laws were issued in 2007- the law on supervision, accounting and audit. I will study the differences between the two countries and introduce the main elements to Chinese counterparts, and hope that the auditing supervision departments from two countries learn from each other and make common progress, it is the intention of the author of this article.This paper expatiates mainly five fields:(1)introducing the significance of this paper, research methods and structure. (2)the theoretical foundation. This paper focuses on the basic theory of Registered Accountants supervision system which includes the necessity of CPA supervision, three regulatory modes of CPA and the contents of supervision system. (3) Comparing the main content of Laos and China's audit supervision system, and analyzing the reasons of the differences. (4) Inspiration on Laos' audit supervision system . (5) the innovation and weaknesses of this paper.