China to Strengthen Oversight of Data Security at Accounting Firms

Accounting firms in China may be subject to additional cybersecurity reviews if they provide services for companies in certain “important” sectors or are involved in work that touches on national security, according to draft rules released on the website of the Ministry of Finance on Monday.

They will have to obtain approval if they want to export any audit working papers, according to the draft, giving Chinese authorities tighter oversight of potentially sensitive data. And they also will be banned from entering into any contracts that involve the provision of information and data on domestic projects to overseas regulatory authorities, it said.