Development Research And Strategy Of China Accounting Industry

As of one sub-sector of professional service sector, Accounting industry plays a important role in market economy, particularly in capital market. With the further development of market economy and our companies frequently participating in international competition, research into accounting industry development becomes more and more urgent. Policy-makers need a lot of theory basis to improve their policies. The author hopes this paper attracts the notice of academe and decision-making class, and hope for the further research into this topic.The paper introduces comparative method, and analyzes native and foreign accounting industry from different angle of view. The author tries his best to predict the future structure in this industry and puts forward some advice to promote the industry.First, the paper includes the development mode of accounting industry in between China and the U.S.A, and analyzes the changing process of the U.S.A accounting industry's position as well as the influence to the industry development .We finds that the influence to independence of the U.S.A accounting industry begins with pursuing high return and low risk consulting operation, then the bankruptcy of the Enron Corporation is the milestone of the development process which leads to the greatest change of the U.S.A accounting industry . SOX Act is beneficial for the role regression that accountants belong to independent third part. This part also gets the valuable use for reference to Chinese accounting industry.Second, the paper chooses two view angles, analyzes the operation and scale of accounting firm from microcosmic angle. Operation compare that includes international "Big Four" accounting firms, the U.S.A, the U.K, France, Hongkong and China mainland, shows that our accounting firm's operation mostly is made up of legal assurance, simple and of lack of innovation. Size compare that includes native and foreign countries and Hongkong, makes usknow two limitations that Chinese big accounting firms are small sized and we needs more small firms. The main reasons are that our accounting market is still immature and Chinese firms have their unique operation theories.At last, the paper lucubrates structure and concentration degree of accounting market. Compare tells us that the U.S.A auditing market is high concentrated and our market is low concentrated which means our market is excessive competitive. Low concentration is one of the reasons why our auditing quality is bad and accountants are lack of independence. This part thinks the monopoly auditing market structure beneficial for auditing quality which is also one trend in accounting market.The paper predicts future situation of accounting industry following much compare and analysis. The first main trend is that medium and small sized accounting firms becomes members of "Big Four" and native big-sized firms. The second trend is that some small-sized firms expands professional subdivisional filed. At last, the paper gives advice about national strategy and material operation policy of accounting industry development. The national strategy includes two points. First is that accounting firms' independence should be enhanced and the related legal system should be perfected, and second is that policy should encourage merger and acquisition of accounting firms which would strengthen scale effect and improve overall competitive power and independence. As far as the material policy advice is concerned, the paper brings forward many items such as promoting individual accounting firms to develop, encouraging firms to innovate, establishing a kind of new managing mode which is based on contract and connected through negotiated organization, enhancing self-discipline of Chinese CPA association and so on.