The Accounting Firm "Low Balling" Problem Research

In China, cheap Showmanship CPA behavior is quite prevalent since the late1990s onwards. Reorganization of the original activity accounting firm auditingprofession in society under administrative protection to the market. The firm is facingmany problems and competitive pressures to survive, had to compete to lower prices,the audit by the initial seller’s market into a buyer’s market. See related statistics canbe approximated by data from China’s audit market competition fierce resistance andwhich is located on charges of domestic weaknesses. The four international auditingservices per capita income is8-10times the national accounting firm. Although thedifference between professional CPA firm’s reputation, brand value, ability to practicemay make the audit fees differ, but the overall price of domestic auditing servicesrevenue is low, resulting in many adverse consequences.In this paper, the problems of audit fees, pointing out factors that affect CPAs"low balling", the first analysis firm "low balling" behavioral analysis of the causes ofuncertainty in which the imbalance between the agency relationship, audit costsnature, business, etc. all contribute to a single price competition intensified, so thatlow-balling the main reason for the proliferation of linear next part, mainly to resolvethe "low balling" problems countermeasures to correct the dislocation auditcommissioned to build the relationship between the double HR audit cost audit marketstructure, and gradually improve the accounting firm fees and related systems, the sizeof the audited entity and the degree of complexity of the business, and to explorenon-price competition strategy to strengthen supervision and management.