Audit Market Structure And Optimization In China

The Industry organization theory is a practical economic theory, which investigates the relationship of monopoly and competition among corporations in the industry or market. Using the framework of the industry organization theory and choosing the way of normative research, we analyze the current situation and main problems of audit market structure in China, and raise some relative advice. By investigating the degree of market concentration, scale economy and barriers to entry or exit, we find audit market structure in China is a dispersive competition one and the efficiency of allocating resource in audit market is poor. How to optimize audit market structure in China and allocate the economic resource correctly? This article tries to import the view of constructing oligarch monopoly market and brings forward some relative advice. The audit market structure is basis for analyzing and researching the competition situation and the efficiency of allocating economic resource. Therefore, the research on the audit market structure is significant for the supervisors, scholars and auditors.