An Accountant Registered In China Competency Model Building Research

With the progress of economic globalization and information technology across the world, certified public accountants (CPAs) in China as a profession has been playing an increasingly important role in international economic and business activities, and as a result, has targeted internationalization as one of its primary goals. Possession of internationalized certified public accountants is a prerequisite to achieving this goal. A core issue in realizing this goal is to define what competencies a certified public accountant should have in the context of internationalization.It has theoretic and practical significance to study the competence of certified public accountants. Theoretically, although much research has been performed to study the CPAs’competence framework, few systematic studies have been made in China on this issue from an international point of view, and even fewer studies have been made with empirical method. So, it is necessary to study the CPAs’ competence with an empirical method in the context of internationalization. In reality, many issues exist regarding the competence framework of CPAs and related systems in China, which hinders the development of China’s CPA sector. Therefore, a more specific and thorough study on competence criteria will be beneficial for the rating, evaluation, inspection and training of CPAs’ competencies and help greatly improve the competence framework of certified public accountants in China.In this study, the author has attempted to create a competency model of certified public accountants in China by comprehensively utilizing a variety of analytic methods, including empirical analysis, normative analysis, quantitative analysis and qualitative analysis.The author first makes a thorough review of the basic concepts in this study, including competence, competence models, the competencies of a CPA and competency models of CPAs. Afterwards, the author reviews and compares the methodologies of identifying, setting up and testing competency models extensively, with emphasis on advantages, disadvantages and usages, so as to find the best method of setting up a competency model of CPA in China. These fundamental concepts and review of competency models constitute the theoretical backgrounds for this study.The author goes on to examine the competence frameworks for certified accountants by the International Federation of Accountants and professional accounting bodies in the United States, the United Kingdoms, Canada, Australia, New Zealand, Germany, France and Japan. Analysis and comparison are then made of the core elements in these competence frameworks. The behavioral repertoires of ten top recognized star CPAs in China are analyzed as supplements to the core elements in the competency frameworks of international accounting bodies. Afterwards, the author sets up a competence dictionary of CPAs in China by combining the core competency elements identified with the two aforementioned methods.Following on from this, the author has set up her own competence models of certified public accountants in China by using the method of behavioral event interview, based on comparison of the behavioral repertoires of eleven top recognized star performers (the outstanding group) and ten qualified CPAs (the qualified group) in China in terms of the core elements identified previously. Scripts of recording are coded according to the competence dictionary, and the generic competencies between two the groups of CPAs are identified and analyzed using the SPSS for Windows16.0software (SPSS Inc., Chicago, IL). Competencies that differ statistically significant between the two CPA groups are labeled as the characteristic competencies of "outstanding CPAs", while competences without statistical difference between the two groups are considered as those of "qualified CPAs".Next, the competency models of CPAs in China are validated with164questionnaires obtained from four accountant firms and two enterprises. Statistical methods include importance analysis, exploratory factor analysis, confirmatory factor analysis and reliability analysis. Two competency models are generated with factor analysis. The competency model of outstanding Chinese CPAs comprises ten competence elements at three levels:1) capabilities of international business (multi-site and group auditing, strategic thinking, familiarity with global economic and business environments, and international communication abilities);2) communication ability and entrepreneurship (leadership and management, communication skills and marketing development);3) advanced vocational capabilities (of risk control, professional judgment and decision making, and project management). The competency model of qualified CPAs is composed of fourteen competence elements at four levels:1) professional knowledge and skills (of auditing, information technology, report and research, law and economics, and accounting standards for business enterprises);2) professional ethics (independence, objectivity and integrity, proper vocational prudence, and social responsibility);3) collaborative abilities (teamwork, logic thinking, and adaptation to changes); and4) personal traits (aggressiveness, creativity and ability of expression).Finally, the author puts forward some policy recommendations regarding the training of certified public accountants in China, based upon the competency models created hereof and the experiences of accounting education in developed countries, including improvement of accounting education systems in institutions of higher leavening, reformation of the qualification system, reinforcement of continuing education, and formation of a mechanism for mutual international accreditation.The originality of this study lies in the following aspects:Primarily, the author has set up competency models of certified public accountants in China by using competency modeling. Although competency modeling is widely used tool for research in the field of human resource management and a lot of competency models at different levels have been set up for various professions in China today, no such research has been performed on the accounting professionals in China. In this study, China’s accounting profession has been studied in detail using competency modeling. To the author’s best knowledge, both this research and the competency model of certified public accountants developed hereof are the first of its kinds in China, which endows this study with originality.Secondly, the author has set up her own competence dictionary based upon different competence frameworks of certified public accountants by the accounting bodies in major developed countries in the world. As a result, the competency model in this study comprises not only the core competence elements of outstanding CPAs, but also the core competencies of all certified public accountants, i.e., the core competence elements of qualified CPAs.Furthermore, this study of has been made in a context when the accounting profession in China is heading for internationalization, and the competency models created hereof are based on large quantity of data and live surveys. This not only provides a novel approach for studying the competency of certified public accountants, but also has significant practical guiding implications for refining the competence framework of CPAs and improving competence-based education for accounting professionals in China.