Changes Of Organizational Forms And Auditing Quality Of Accounting Firms

During more than 30 years, development of Certified Public Accountant(CPA) has experienced recovery and reconstruction, standardized development, institutional inno-vation and international development. Driven by the development of CPA industry, the system of accounting firm has been improved. There are many organizational forms of accounting firms. During recent years, it is dominated by limited liability. Every organizational form has its rationality to exist. Due to different economic forms and so-cial conditions in every period, the suitable organization forms will also change. In r-ecent years, under the guidance of State Council and coordination of Financial Department, in order to meet the social demands, promote industrial development and satisfy international requirements, accounting firms have tried to put forward a special gene-ral partnership in China, which integrates advantages of both limited liability system and general partnership. Auditing quality is not only the foundation of accounting firm’s development, but also the wind vane. Therefore, to analyze the influence of accounting firm’s organizational forms on the effects and effectively reflect the development status of accounting firms, the variable of auditing quality must be the option. Consequently, this paper mainly investigates the brand reputation, auditing fees, quantity of CPA and percapita income of employees of accounting firms during those years whenthey make successful transformations. Respectively from the perspective of case analysis, horizontal and vertical empirical comparison, this paper concludes and verifies influences of transformations of enterprise’s organizational forms on the auditing quality, which puts forward a comparatively reliable evidence for effects of accounting firms’ organizational forms in China. According to case study of Shu Lun Pan CPA Co.Ltd, on one hand, after the restructuring of enterprise, it increases all auditing fees to a certain extent; on the other hand, the proportion of top 10 average non-standard repo-rts of Shu Lun Pan CPA Co., Ltd and domestic firms shows a downward trend. Ac-cording to the empirical research, on one hand, the auditing fee of an accounting firm after restructuring is obviously higher than that standard before the transformation; on the other hand, compared to market of key accounts, changes of organizational forms are more remarkable on auditing fee in the market of minor accounts.