Research On Auditing Market Target Orientation Based On Firm Industry Expertise

Audit failure cases in recent years have shown that audit quality problems are more likely to occur in specific industries.The CICPA has also repeatedly warned about audit risks in specific industries.The concept of modern risk-oriented auditing requires an understanding of the audited entity and its environment.Increasingly complex business operations also require an understanding of the industry in which the audited entity is located.Therefore,accounting firms should vigorously develop industry expertise to identify risks.The national policy indicates that China's auditing industry should "make bigger and stronger,go out and scale up the industry".The domestic audit market is increasingly competitive under this opportunity.The firm should implement the target market positioning strategy as soon as possible and gain a leading position in the industry through differentiated services.The data shows that the domestic audit market has formed a certain level of firm industry expertise.However,further analysis found that most of the current industry expertise of the firm continued to develop.Few accounting firms are based on the target market positioning strategy of the firm's industry expertise.Therefore,this paper first elaborates on the basis of risk-oriented audit theory and industrial organization theory.Secondly,this paper analyzes the current situation of China's audit market based on the research path of SCP paradigm,and then summarizes the problems existing in the current target market positioning of the firm,which indicates that the target market positioning should be based on the firm's industry expertise.Then this paper analyzes the factors that the firm should consider when positioning the target market,introduces the GE matrix method to target the market,and then applies the method to the actual case to position the target market for the effective development of the industry expertise of the X firm.Finally,the paper summarizes the full text,and hopes that the research in this paper can provide substantive solutions for accounting firms to develop industry expertise more efficiently.The lack of research in this paper points out that there is a certain bias in the setting of scoring standards.The GE matrix method adopted is only a feasible method for target market selection.The firm does not need to be limited to this method when conducting the target market position.