A Research Into Regulatory Classification Of United Certified Public Accountants

As the innovation of the regulatory system, this research tried to evaluate the overall quality of the Certified Public Accountants (CPA), categorize them and then put the classified supervision into effect. Based on the comprehensive evaluation and classification of the certified public accountants, the supervisory departments could adopt differentiated supervision measures. For example, the regulation resources could be less allocated for those with standardized management and good practice quality. On the other hand, more attention should be paid on those with significant risks on the practice and deficiency on the internal governance. Drastic measures are needed to complete the internal governance and mitigate the risks. It helped to highlight the focus of supervision, reasonably allocate the regulation resources, and alleviate the current contradictions between the rapid development and the insufficient supervision resources. Moreover, it promoted the concentration of the market resources on the high-quality CPA and improved the development.The premise of the classification regulation is to comprehensively evaluate the overall quality of CPA and categorize them. Nowadays in China, only CICPA publishes the comprehensive evaluation of Top 100 CPA annually according to the CPA Comprehensive Evaluation Measures. The objectivity, scientificity and authorityof the information about Top 100 CPA are widely accepted by the public, the supervisory departments and the stock market. However, there are some shortcomings in the ambiguous basis and standard of classification, excessive weight of the business income as well as the imperfect index system of comprehensive evaluation. Thus, the premise of the classification regulation is to improve and refine the comprehensive evaluation measures. Simultaneously, this article uses the factor analysis of the top 100 CPA 2013 annual five indicators, in order to overcome the AICPA CPA comprehensive evaluation approaches deficiencies.The focus of the classified supervision is to establish different modes of supervision according to the different categories, and a scientific, comprehensive and standardized classification of the operational mechanism. In regard to CPA of different categories, this paper analyzed the daily supervision, policy support and administrative punishment, and the policy suggestions were put forward. The general guideline and principle is that, the autonomy is carried out for the CPA of high-quality with a tolerant regulatory policy; on the other hand, the comprehensive control is applied for the CPA of high-risk to promote the self-regulation, improve the restraint mechanism and mitigate the risks.