Study On The Transformation And Development Of The Institute Of Certified Public Accountants In The Context Of The Separation Of The Government And The Communities

The Certified Public Accountants profession is an important arrangement of the supervision system of market economy, and also an important category of high-end services. Chinese CPA profession and the economy have always been symbiotically interacting with each other since CPA’s reconstruction in 1980 s. It has been developing with its scale gradually expanded, service quality and professional morality greatly improved, gross income rapidly grown, the service of economic and social development enhanced, social status and international influence improved significantly. Meanwhile, the development of the industry is also faced with difficulties and challenges. Many problems, such as the lack of the high-end talent, serious brain drain,competition at unjustifiably low prices, imperfection of governance system of accounting firms,are still to be solved. Moreover, the professional competence of the CPAs should be improved on the whole, the regulatory mechanisms of the industry could be refined, and the information technology efforts need to be further enhanced.As a regulatory authority of the CPA profession, The Chinese Institute of Certified Public Accountants was founded in 1988, then the local institutes were set up one after another. The institutes at different levels played a important role in the development of the CPA profession of the country. With the purpose of “service, supervision management, and coordination”, they service members, supervise service quality of members, manage the industry according to law,coordinate the internal and external relationships, and maintain the social public benefit and members’ legal rights and interests as well.It was decided at the Third Plenum of the 18 th CPC Central Committee that the separation of government and society would be accelerated, and the social organization would be brought into effect. Then the general designation of decoupling between industry associations, chambers of commerce and administrative organizations was published to propose the timeline, duty and measures of the decoupling.As self-discipline organizations, the institutes of CPA at all levels are not far away from reorganization. Based on analyses of the state of both the CPA profession and the institutes in China, the essay studies on reorganization of industry associations, summarizes practices of the industry abroad, and provides some suggestions for domestic institutes of CPA. Aiming to give the institutes some valuable suggestions, it advises to improve the regulatory system, strengthen the construction of talent, raise the level of information, expand professional services, enhance its international standard, intensify organization construction of the accounting firms, and promote management level of the institutes.