The Study On Scale Expansion Of China's CPA Firms

As the end of the transition of our country joining WTO, the accounting service market opening completely, and the competition our CPA firms face becoming more and more fierce. Nonetheless, because our accounting firm get a late start, there is a pretty big gap compare with the international CPA firm. In particular, as the rapid development of market economy, the continuous expansion of enterprises, the further complexity of business, the diversification of market demand, the increasingly competition of accounting market, foreign competitors continue to erode Chinese market and form enormous impingement in a few advanced fields. So it is urgent to make a lot of large-scale CPA firms which have international competitiveness and can undertake domestic and international business. Those CPA firms stand for our nation brands and can spur the CPA industry, furthermore, they can enhance the market share and promote the development of globalization. Recently, many relevant departments have given much guidance and support on the scale expansion and successively promulgated a series of policies and measures. Meanwhile, many CPA firms are exploring the road of diversification and seeking joint merger actively for coping with the impact of the big four. Those practice is a useful experiment road of diversified, actively seeking joint merger. Practice is the scale of these firms to explore the development of a useful experiment. There is a very important theoretical and practical significance on studying the scale expansion.This paper adopts the standardized and empirical methods to study the scale expansion of CPA firm. Firstly, it discusses the evolvement of domestic and international CPA firms. Secondly, it introduces the concepts and modes of scale expansion, discusses the necessity of the scale expansion of Chinese CPA firms, and adopts the empirical methods to study the scale economy of domestic CPA firms and big four. Thirdly, it analyzed the conformity of the CPA firms from strategy, organizational structure, human resources and culture. Finally, there is a result and some suggestions. Chinese CPA firms have to set up their ethical brand, expand services fields, train the international person, and realize the scale economy.