Mr. Kangle Song, deputy director-general of the enterprises Department of the Ministry of Finance, said “Financial crisis, or even bankruptcies are occurred in lots of large-scale domestic and foreign invested enterprises in recent years, which disclose the problems of false accounting information and internal control failure. The recent example is CAOSC event.” The Ministry of Finance therefore, formulates the “Trial Measures for Evaluating Internal Financial Management of Enterprises” (hereinafter to be referred to as  “Measures”) on the basisi of early survey and study. The design of financial system of an enterprise and the implementation thereof will be in the supervising range of the Ministry of Finance formally.

The “Measures” includes quantitative assessment, qualitative assessment, assessment procedures, assessemnt requirments, assessment results and usage information. There is an attachment with the “Measures” showing how to carry out quantitative assessment and qualitative assessment in details.

The “Measures” rules that the internal financial management evaluation can be done by investors, managers, agencies, or public fiscal departments in-charge. The assessment has three phrases which are self-assessment, assessment by agencies, and assessment by public fiscal departments in-charge.

“The “Measures” will be universal to all enterprises, just like “Sarbanes-Oxley Act”. If an enterprise is in the assessment range, it must accept the assessment from the Ministry of Finance, ” said by Mr. Yongtian Lai, the division head of the system office of the enterprises Department of the Ministry of Finance.