Research About Incentive Mechanism Of ABC Accounting Firm

China’s economy has grown rapidly since the reform and opening up. Thegrowing number of various economic entities and a substantial increase in auditingbusiness brings huge development space for accounting firm. Therefore, accountingfirms have developed rapidly, and some firms have formed a certain scale with astrong competitive edge. However, due to the complexity and increasing competitionof the audit market in China, many accounting firms encounter lots of problems in theprocess of development. For example, less market share, low business income and asmall number of major customers; low quality of certified public accountants, lack ofrisk awareness, low quality of audit and high staff mobility; all influence thedevelopment of accounting firms. The lack of high-quality talent is the bottleneck ofthe development of many accounting firms, since talent is the key for accountingfirms to become bigger and stronger, and become the industry leader. The ability tohave high-quality talents determines the success or failure of the firm.How to effectively manage and motivate certified public accountants has becomethe most important issue for human resource management of accounting firms.Accounting firms need to establish the corporate image, attract talents and retain them,constantly optimize the allocation of human resources, and establish and improve theincentive mechanism. In order to improve the quality of audits and avoid risk,certified public accountants should effectively apply their knowledge and ability andthrow themselves into work. Therefore, an effective incentive mechanism is essentialfor accounting firms to grow and enhance public awareness.This paper first introduced the incentive theories from a management perspective,then, according to the characteristics of “people combined”, discussed and analyzedthe particularity in incentive theory of certified public accountants, came to thecharacteristics of demand of certified public accountants. This paper analyzed theadvantages, problems and their causes of human resources management, incentivecompensation and training mechanism of ABC accounting firm, through theinvestigation of the background, the present situation of human resources andincentive mechanism of ABC accounting firm. Finally, recommendations are made tostrengthen internal management, improve the examination system and the quantitative indicators, and establish incentive mechanism and appropriate incentives of ABCaccounting firm. The conclusion of case analysis: Due to the “people combined”characteristics, the certified public accountants with high qualities are the importantresource of accounting firms. The development of accounting firms need not onlystrengthen the management and expand the business channel, but also establish acomplete and comprehensive incentive model according to the individual differencesand the diversification of demand, in order to constantly develop and expand in thehighly competitive accounting market.