Study On Internal Governance Issues Of Accounting Firms In China

Since reform and opening, the market economy system has continued to deepen and improve its growing demand for accountants, CPA's role is increasingly important. In order to achieve the accounting profession healthy, stable development, accounting firms will need to continue to improve its own internal governance, and how the firm's internal governance is more complete, this issue has attracted industry-wide attention and discussion. China's accounting firm is growing faster over the past decade, great achievements for all to see, but at the same time, a lot of internal governance problems exposed, it is because accounting firms in China is still very short time, no formed in line with China's market economy environment, management and development model, adopt a foreign experience and theory is not feasible, it is easy to cause the unhealthy development of industry accounting firm. Accounting firm revealed the key issues is the internal governance mechanisms have serious flaws that poor quality of audit reports issued, causing the overall credibility of the accounting firm industry crisis, accounting firms can not be better bigger, stronger, hindering the sustainable development of China's accounting firm. Therefore, this article analyzes the accounting firm in the elements of internal governance mechanisms on the basis of an analysis of its internal governance mechanisms of the main problems and the corresponding improvement measures with a view to the development of the accounting firm to provide a reference. Based on this, this paper uses qualitative research methods to accounting firms for the study, first introduced the background and significance of thesis research, and analysis of the internal governance of international accounting firm study the situation, play on a research study in this paper Background The role of bedding, and thus around the topics of papers detailing the main research papers, research methodology and basic framework. Secondly, this paper describes the need to institute internal governance theory, such as principal-agent theory, stakeholder theory, game theory and human capital theory, and further describes the meaning of the accounting firm and internal governance characteristics and accounting firms the main contents of internal governance, research-based thesis has laid a theoretical foundation. Third, the major accounting firms from the ownership structure and profit distribution mechanism, human resources management, internal quality control, a partner five aspects of culture compared to the situation at home and abroad, put forward China's accounting firm within the existing governance main issues, namely ownership structure is irrational, the lack of a reasonable profit distribution system, the accounting firm staff mobility, firm employees lack the incentive and restraint mechanisms, implementation of internal quality control system in place, inadequate accounting firm culture construction, and that the wording proposed .accounting firm's internal governance problems of the danger. IV Based on the above analysis, the accounting firm improve our internal governance measures, such as ownership structure to achieve appropriate decentralization of the accounting firm, to establish a performance-based accounting firm profit distribution system, strengthening CPA staff of professional quality, establish accounting firm reasonable incentive and restraint mechanisms, and strengthen the internal quality control system construction and implementation, strengthen the culture of construction firms.According to this paper, the characteristics of the research topic, the article mainly to regulate the research-based and draws upon the international accounting firm's internal governance of research as a basis for the use of induction, analysis, reasoning and a series of methods, China's accounting firm's internal governance of the main problems and recommendations for improvements to the system thinking and analysis. Of course, there are bound to paper and inadequate oversight, I hope the scholars will be corrected and advice, and hope that this paper will, serve, our accounting firm for the improvement of internal governance and to make a firm's long-term development were modest. At the same time, I believe that theorists and practitioners continue to study in depth, will largely improve our accounting firm's internal governance mechanisms.