The first is the regulation of auditors. The profession has argued for years that self-regulation and peer review are the right way to maintain standards. But the conduct of Enron, Parmalat etc. under the very nose of auditors has raised question about the effectiveness of soft regulation.
In 2003, pilot reform program of the Rural Credit Cooperatives (RCCs) was conducted in 8 provinces and municipalities. Chongqing as one of the municipalities participating in the pilot program has so far made good progress in the reform, creating a sound foundation for future endeavors.