| To accomplish the goal of making accounting firms bigger and stronger,narrowing and even catching up with the gap between the quality of audit services in our country and the developed countries,China innovatively put forward the concept of special general partnerships and promoted and applied them in domestic large and medium-sized accounting firms.In July 20,2010,the Ministry of Finance and the General Administration of industry and Commerce jointly promulgated the Provisional Regulations on promoting the use of special common partnership organizations for large and medium-sized accounting firms,and clearly pointed out that "before December 31,2010,large accounting firms in China should be transformed into a special form of general partnership.The accounting firms was transformed into a special general partnership before December 31,2011.From the above,it can be seen that this transformation is not the result of market forces.The special general partnership system changes the legal liability risks of firms and certified public accountants,whether it can improve the audit quality and better meet the needs of economic development.This is a question to be discussed in this article.This paper based on reviews of domestic and foreign scholars' literature on organizational form selection and audit quality measurement standards,outlines the relevant elements of audit quality and the form of accounting firms' organization,combining fraud triangle theory,“deep pocket” theory,and reputation theory.Select T accounting firm as the research object,use the literature analysis method,case analysis method and comparative analysis method to collect and sort out the data of all the listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that were audited by the T accounting firm from 2010 to 2016.Four aspects of the mechanism,the type of audit opinion presented,the customer's choice,and the audit fees explored the impact of the restructuring of the T accounting firms on audit quality.This paper also proposes three suggestions for improving the effectiveness of China's accounting firm restructuring: at first,improving the internal governance structure of the accounting firm,diversify the equity,avoid over-concentration of equity in certain shareholders,strengthen the supervision and control of shareholders or partners,and implement a one-person-one-vote voting method for partner meetings,and conduct major events and special events that affect the firm,and establish mutual funds and remuneration assessment system,and adhere to the principle of integration of human resources;furthermore,establishing the fault liability appraisal committee,the CICPA is responsible for the composition of individuals with strong independence,proficient in professional fields and rich practical experience,it is regulated by legal means to clarify the conditions for the corresponding personnel,the implementation methods of the appraisal procedures and the effectiveness of the appraisal results;at last,establishing a sound personal property registration system for partners,classify the partners' assets into collective assets and private property,ensure the integrity and accuracy of the partners' assets,and let the partners clearly understand the responsibilities and costs of the audit failure.The study shows that the transformation of the T accounting firm can improve the level of audit quality.First of all,the improvement of the internal auditing mechanism of the T accounting firm reflects the improvement of the audit quality.After the restructuring,the ownership structure and interest distribution mechanism of the T accounting firm were more rationalized and in line with the trend of the times;in terms of branch management,the“five-unified”system of the total points office was adopted and the integrated mode was adopted;in terms of talent management,the partners and certified public accountants have outstanding professional qualities and professional experience,and at the same time give auditors promotion opportunities and build high-quality professional talent platforms.Secondly,the increase in the number of non-standard audit opinions issued by T accounting firm reflects the improvement of the audit quality.After the restructuring of the T accounting firm,due to the nature of the audit risk liability,the partners will be more cautious about the protection process for the protection of their own interests,and will not easily give inappropriate audit opinions due to the pressure of the audited customer management.As a result,the number and proportion of non-standard audit opinions issued have increased year by year,and the auditing quality of T accounting firm has been improved.Again,the increase in the number of T accounting firm customers has reflected the improvement in the quality of audits.When the size of an accounting firm and the number of customers reach a certain height,change the position of weakness in the dislocation relationship,grasp the right to speak,have the opportunity and the will to choose more suitable customers,and not go for some high-risk customers.Challenge the firm's risk control strategies and regulatory measures.The greater the number of customers,the greater the degree of independence of the T accounting firm to maintain its independence and the level of audit quality.Finally,the increase in the audit fees of T accounting firm reflectsthe improvement of the audit quality.Because T accounting firm faced increased legal risks and increased risk control of the auditing business after the conversion,CPAs performed more audit procedures in the audit process,treated audit risks with care,provided high-quality audit services,and the level of audit fees naturally increased.In addition,most companies are willing to pay higher audit fees for auditing projects,indicating that they recognize the brand and audit service quality of T accounting firm. |
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