AICPA in the areas of accounting firms talk about bigger and stronger role

Abstract: In this paper, Heilongjiang Province, the Development status of accounting firms, accounting firms on where bigger and stronger in the AICPA's role in a number of recommendations.

Keywords: local AICPA; accounting firms; bigger and stronger

In order to meet China's socialist market Economic Development, implement the State Council on Accelerating the Development of services in a number of observations, to better serve China's Economic Development and boost Chinese enterprises "going out" strategy, the AICPA issued a <<About promote the views of bigger and stronger accounting firm>> and <<accounting firm's internal governance Guide>> marks the further implementation of the CPA profession in the Industry, talent strategy, guidelines on the basis of international convergence strategy, launched a comprehensive Development of the Industry third strategy - bigger and stronger strategy, which is to restore the development of China's CPA Industry 20 years, faces another important opportunity for development, although development of the major accounting firms rely on their own strength, but with the help of Industry associations guidance, coordination and external security services are also indispensable factors. To promote the Industry bigger and stronger, is the responsibility of the Institute of Chartered Accountants glorious mission.


First, Heilongjiang Province Development of accounting firms

(A) the number of accounting firms, small scale, weak competitiveness
To the end of 2008, up more than 280 accounting firms across the province (including the provincial office of the branch), the CPA than 2,400, the average less than 10 CPA firms from the AICPA released in Heilongjiang Province comprehensive evaluation of the accounting firm in 2007 the top 30 information see the largest number of certified public accountants firm is also only 56 certified public accountants, certified public accountant for more than 50 the number of firms with only two, accounting for 6.67%; CPA number of firms in 20-40 were only four, accounting for 13.33%, the rest of the numbers were less than 20 people. In addition, Heilongjiang Province, in 2007 the firm ranked first in income, their income is only one 1.28 million yuan , only a comprehensive evaluation of the national accounting firm in the top 100 ranking last (Chongqing, Hong Wah, 2 208 million) 50% overall ranking has its own, the province is not a public accounting firm to enter the AICPA comprehensive evaluation of the accounting firm's top 100 list. Obviously, so many firms, has led to market saturation in the province audit, firms from other provinces also face strong competition between the firms through lower prices, which do not legitimate means to obtain the business have occurred, seriously disrupting the normal order of the audit market, affecting the CPA profession's professional image.

(B) lack of personnel the accounting firm
The first is the extreme lack of high-end talent: the AICPA industry leader in the first 30 people, none of Heilongjiang Province, the accounting firm of certified public accountants; province of Certified Public Accountants in the number of master's degrees account for only 3.08%, with Dr. degrees accounted for 0.12%, the following undergraduate degree accounted for 59.58%, followed by, the aging of the accounting firm personnel, temporary shortage is serious. the province over the age of 50 the total number of CPAs 40.43% (most of the other enterprises and institutions retirees), and 30 years of age accounted for only 2.08%. Certified Public Accountants is the knowledge of the era of knowledge economy businesses, high-quality highly educated people is the fundamental development, talent and reasonable age structure of its constantly update their knowledge and innovation protection of Heilongjiang Province, the current personnel situation of the accounting firm has restricted the development of the industry, the firm's scope of practice as a single province, most of the firm's operations are confined to auditing, verification, and asset evaluation and other traditional business, but belongs to expand their business management consulting business is very small proportion of the last three years the province's office of audit, verification, asset valuation business income accounted for more than 90% of total revenue.

(C) the accounting firm's internal governance mechanisms are inadequate
Internal governance mechanisms are inadequate to the firm will not only affect the normal operation and steady development, but also directly or indirectly lead to firm quality control system out of control, weakening the ability to practice risk control, increasing the practice of failure may seriously affect the practitioners professional ethics and quality of service. Currently, the province part of the firm (such as some of the larger of the largest of the branch and in the provinces) to the internal governance recognize the importance of development for the firm, attempts to establish a preliminary decision-making mechanism and developed a number of management system, but mechanism is not perfect and there is still scientific implementation of the system is not in place and other issues; while most small firms, more concentrated equity, the firm's basic decision-making power rests in the hands of head office, or that they do not need to consider the issue of internal governance mechanisms , or does not have the relevant knowledge and ability to build the system; another firm grim living conditions, but also the firm's decision-makers to attend to internal governance mechanisms. When the firm reaches a certain size, the internal governance is weak will highlight the consequences of .2000 years, Heilongjiang Province, has 3-4 independently furniture securities-related business, begun to take shape and has a good reputation of the firm, but because equity allocation, employee motivation, the internal distribution of benefits governance mechanism is missing or invalid, these firms business almost overnight, people have lost, lost in the Chinese accounting firm in the first wave of consolidation. Since then, Heilongjiang Province, has no independent enforcement of securities-related business qualified firm.

(D) of CPA status quo, lack of development will and clear objectives
Firms and other businesses, whether or not the development and decision-making has a direct relationship, while the majority of the firm's leadership in Heilongjiang Province, or the status quo, only immediate, courage, and courage to develop; or even the development will but by its own capacity constraints, inability to use modern management concepts for market leading firms and the cultivation and development, the face of high-end customers, high-end business was carved up outside the province can only endure Links to free download http : / / www.hi138.com gas swallow one's cries, helpless end of 2008, Heilongjiang Province, a total of 26 listed companies, of which only 5-6 at home by the provincial office's annual report (both the provincial branch of the firm) audit The remaining operations are international "Big Four" firms are divided and in the provinces.

(E) the pressure from the external practice environment
Part of the old ideas of government departments, functions rigid, the CPA to promote local Economic development understand the importance, do not understand the industry development and change, do not trust the local firm, the firm too much administrative interference, regulation backward, The development of the industry policy are far from being introduced, such as Heilongjiang CPA performs charging system is still the early 1990s, such charges can not meet the industry's development, even so, some local government departments also forced accounting firms in various ways to reduce fees, not short-listed or state-owned enterprises and institutions engaged in related businesses, while the revised requirements for the CPA requirements of the standard fee, but delays in the relevant departments to respond to well known , low fees will eventually lead to a decline in audit quality.


Second, give full play to the accounting firm of Heilongjiang Province, bigger and stronger in the AICPA's role

Practice has proved that China's CPA industry in the course of development and growth, the association is to promote industry development and progress is always an important force in the firm's bigger and stronger as the industry is another major development strategy, its implementation and to promote the need for each the tireless efforts of family firms, and associations of the overall planning, close guidance, communication and coordination will also play a very important role.

(A) According to the firm's development status of the province, bigger and stronger to set realistic goals and take concrete measures to ensure the objectives are achieved
According to the AICPA to develop five to 10 years, the development of firm goals, Heilongjiang Province, to develop a <<on the province to promote the normal development of the implementation of the accounting firm views >>.<< opinions>> presented the province's accounting firm to develop normally The overall goal, with 5 to 10 years, the development of training 3-5 furniture of a certain size and good reputation, to large enterprises and enterprise groups to provide comprehensive services to accounting firms, on this basis, the development of training 1-2 annual revenue of $ 20 million or more, to the cooperation with international, cross-border operations to provide integrated services of international accounting firm. The goal is the development of accounting firms in Heilongjiang Province, consistent with the status quo, but also a need for effort to achieve goals. To achieve this goal, the first province should make use of the AICPA courses, journals, and other firms within the learning bigger and stronger firm to publicize the need for and importance of specific targets, especially in the province CPA firm leadership to understand: First of all, bigger and stronger is the Economic and social development of the CPA requires the construction of the objective, is the only way for development of the industry, domestic and foreign counterparts face fierce competition, firms fall behind, so that the transaction voluntarily participate in the bigger and stronger in the past; followed to help firms identify their position in the industry, so it can work out their own development goals; Finally, the development of long-term mechanism, pay close attention to firms in bigger and stronger encountered problems at any time to provide help and guidance.

(B) the implementation of industry training "30", featuring the province to develop a training mechanism for firms to provide human resources support a bigger and stronger. To establish an industry leader in Heilongjiang Province, personnel training system. Industry leading talent of the industry development acts as a "bellwether" role, to lead the development of the industry. Heilongjiang Province for the status of high-end talent shortage, the provincial industry leader in the AICPA should be established at the provincial level training system, and set up a special training fund in the province-wide selection of talents within, through training courses, participate in the exchange of learning at home and abroad, organizing symposium, etc. to bring up, top-notch talent and to encourage them to participate in the AICPA's leading talent selection.

(2) continue to improve and perfect the education system in general to improve the quality of the province of Certified Public Accountants and professional competence. A small number of elite talent is important, but the quality of the entire group of Certified Public Accountants and the improvement of professional competence is the development of the industry's fundamental. Province AICPA should continue in the existing education system, based on the efforts to develop online teaching, teaching resources download self-study follow-up and other more flexible mode of education, and business development based on industry practice and the problems encountered to date training, to enhance the level of teacher training and qualification assessment, in order to enhance the effect of follow-up education. In addition, to encourage the CPA education through in-service study (degree) and obtain other relevant qualification certificates and other self-learning to improve themselves, the AICPA should develop policies to allow it to participate in a certain way equivalent to the follow-up education class.

3 full advantage of university resources-rich province, to attract outstanding new forces into the province of the CPA profession, the industry reserves for the reserve talents. Specific measures: (1) led the AICPA to establish long-term partnerships with universities, industry personalities to the school through the selection of lectures and the ability of firms to bear part of the relevant professional college student internship, etc., so that school-trained people more fit demands of the industry (2) changing the existing Recruitment firms mainly rely on acquaintances recommended individual recruitment methods, the AICPA accounting firm in the province can be organized in the form of community colleges and universities open to the referral and the recruitment will be declared in order to increase impact ability to expand human choice side, merit-based hiring talent.

(C) a sound decision-making and management mechanisms within the firm, firms can improve risk management and quality control, bigger and stronger is the firm's endogenous forces, provincial AICPA should guide and supervise the construction firm's internal governance mechanisms and implementation
Firm's internal governance, including quality control, risk management, internal checks and balances, pay distribution, market development and implementation of the strategy and other aspects of the content, improve the firm's internal governance is a long-term and systematic project, requires a lot of manpower, material , the quality of firm decision-making and ability to Links to free download http://www.hi138.com have high demands. Heilongjiang Province for the current status of governance within the firm, in the province of the AICPA guidance, supervision governance mechanisms within the firm's construction and execution, the radical and should be avoided, "one size fits all" approach for certain management foundation, have the ability in accordance with the AICPA, "accounting firm's internal governance Guide>> strengthen and improve the internal governance of the firm Provincial AICPA only its internal governance and oversight can be evaluated for basic internal governance is weak, small scale, the main person in charge of lack of appropriate knowledge management firms, the AICPA needs to do more work, first to strengthen the the main person in charge of the firm's training and education to understand and master the relevant knowledge of modern business management; Secondly, we should address the characteristics of small firms, without prejudice to <<accounting firm's internal governance Guide>> spirit of the Provincial AICPA lead organization within the firm studied the development of small-scale model of governance-related documents and internal system of governance system in order to enhance the internal governance policies to ensure the enforceability and effectiveness of its practical play; Finally, the establishment of appropriate mechanisms for evaluation and supervision to ensure the development of the firm's constitution and decision-making, management system has always been implemented.

(D) to coordinate internal and external relations, to improve the practice environment
AICPA should represent the industry and local government departments to actively communicate and coordinate to promote industry in the local Economic development has been made and can make a contribution, and self-recovery industry has made great development progress and difficulties to enhance understanding for support and expand the influence of industry, promote the healthy development. Such as the further implementation of the <<Law >>,<< >>,<< Bankruptcy Law Securities Law "and other statutory audit system; called on the government to establish a more open, fair and open market system, the CPA business for the province to expand the playing field opportunities; and commercial, taxation, prices and other departments, to promote the industry fee system, the tax systems of the building.

(E) continue to improve the integrity of the building industry and quality inspection system, to promote the survival of the fittest mechanism for the formation of industry
1 In recent years, the AICPA has established a well-established practice of monitoring the integrity and quality of office systems, such as credit reports, peer review, special inspections, etc., in the future to continue to improve and effectively implement these systems, it is important , do not follow practice guidelines for the practice of the firm required to be resolutely punished without leniency.

2 Because the CPA profession, so that the general public is difficult to independently determine the quality level of firm practice, the choice of firms are less blindly, and thus difficult to naturally occurring short-term market survival of the fittest firms. Association of affairs should be The integrity and quality of their inspection, based on increased publicity efforts to enhance integrity Puguang Tai, the firm overall strength of the influence of such list, so that the community understand the firm level differences in the service, to promote the industry's survival of the fittest, so do not integrity, poor quality of the firm practicing automatically eliminated or the annexation of other firms, and in good faith, practice good quality firms will gradually become bigger and stronger.


[References]
[1] Wang. To promote the CPA industry bigger and stronger [J]. China Certified Public Accountants, 2007.10.

[2] Qixing Li, Yuan Qiuhong. With the government forces to promote bigger and stronger accounting firms in Jiangsu [J]. Audit and Economic Research, 2008.7.

[3] Zhu Ying. China's current development of the local accounting firm and countermeasures [J]. Chinese business, 2008.5.

[4] Huang Yu. To promote the accounting firm bigger and stronger Reflections [J]. Friends of Accounting, 2007.4.

Links to free download http://www.hi138.com