On the civil audit by the seller's buyer's market

[Abstract] civil audit of the independent audit, social audit is an important part of the audit market, but based on the current Economic environment and its Economic strength, not only in the non-independence of the audit be challenged, while the audit market is a buyer from a seller market, making the civil audit of development has been hampered this paper will focus on non-audit changes in the market analysis and propose solutions.

[Keywords] civil audit, market environment, strategies

The conversion of non-audit market, although the law in line with market development, the buyer has more autonomy, but the liberation of autonomy to private audit brings more problems and difficulties, their value is difficult to make non-audit achieved. This transformation of the civil audit market analysis and propose solutions.


First, the buyer of factors prevail

1. The changing nature of market demand
Analysis of an industry environment within the industry not only from the behavior of each member of the analysis, but also from the relationship between the development of the industry's focus on the macroEconomic background. The current customer base as the market economy needs change, and market competition intensified, operators are exploring how to achieve maximum Economic benefits, while accounting for different members of the community's views and requirements are different, so that public audit market demand changes, and this situation there are two main reasons:
First, the joint-stock company's equity structure is irrational. The existing shares of companies with "dominance" or part of the market combined company's chairman and general manager of the phenomenon, so that operators will be audited by the audit commission who becomes people, they largely determine the auditors hired, and non-audit their own lack of Economic strength, which will inevitably lead to greater reliance on non-audit the buyer to continue to lose the dominant position in a seller's market, so a seller to a buyer's market .

Second, the lack of market demand on the one hand, the vast majority of enterprises to employ the auditor's purpose is not to improve their management or to meet the information needs of users, but to respond to the listing announcement, government supervision and to meet the annual inspection, loan, taxes and other mandatory audit requirements of the enterprise, so that private enterprise is not the role of audit, making the lack of demand for non-audit the other hand, corporate management based on management requirements, and financial handling of the report and audit often conflict, which makes non-audit in an awkward position, economic strength is weak, smaller non-audit, of course, the independence and impartiality will be spoiled for choice on order to get market share, they have lowered stance, gradually succumb to a buyer's market requirements.

2 Office of the drawbacks affecting the impartiality of the audit environment
(1 audit fee variable. At present, China's non-existence of many small-scale audit market, technology is weak, quality control and discipline is not strong firm, combined with the "big four" accounted for most of the market in our country, while the remaining part of the market by domestic several of the larger firms firmly grasp, therefore, small-scale private audit agencies in order to be able to survive in the market generally would violate the rules of the market, price competition, Lowballing to obtain economic benefits in such a vicious competition, the audited entity have many choices, so that the audit continue toward a seller's buyer's market.

(2 set unreasonable structure and some formal audit firms provide non-audit services, to find customers, but this behavior has weakened the role of the audit profession, but the long-term impact on the development of non-audit, making audit institutions continue to lose its dominant position , the audit market from a seller to a buyer's market changes.

3 short history of the development of folk Culture audit
Early 20th century, China's national industry and commerce have been greatly developed, Inc. have been established, by both the impact of foreign accounting firms, then the civil audit was started, but by the time the impact of domestic and international situation, our country's The slow development of civil audit, while China's civil audit of the entire industry Culture system is not perfect, the relevant rules and norms can not form a complete system in this environment, civil audit for their own interests, the more relaxed requirements on their own, indirectly, to promote audit direction of the market from a seller to a buyer market.

4 auditors lack of noble sentiments and moral cultivation
Employees of the CPA's professional nature of the lack of full understanding, there is no strong sense of responsibility and moral consciousness, part of the audit staff in the interests of compromise and give up ethics, audit opinion on the credibility of the greatly reduced, while the buyer can take down audit costs , according to the need to select the appropriate audit agency.

5 China's civil audit of inappropriate measures when faced with competition
Relatively late development of China's civil audit, the market is not mature enough. Audit market competition mainly on price competition rather than the quality, credibility of the competition, and there is competition in the intervention and the right to control, making the audit institutions lack the power to build brand and reputation, unfair competition methods and lower prices makes the accounting firm of malignant difficult to attract good accounting personnel to augment the ranks of Certified Public Accountants. With China's civil audit is not faced with the audit unit and with all aspects of the resistance due to difficulties arising from the psychological, so with that it can not catch up with others in quality, then the price, extra services and other colleagues to achieve their own competitive value realization behavior. As a result, civil audit can not be substantially more competitive, but showed its weakness in the long run, the vicious competition of the audit market share will be less and less, and this case gave the buyer provides a convenient and opportunities.


Second, the program turned around to respond to market over-

(I tap the market, expand business volume
Current conditions, the forensic audit of the traditional business-oriented business is fiercely competitive, so for non-forensic accounting firm will strong business expansion, but currently auditing the project is still relatively simple, the slow pace of business expansion, so the creative talents The train seemed imminent from the macro point of view, the rapid development of China's real estate industry, foreign trade and other industries are also a good momentum, not just focus on these non-audit a hot industry, but into other areas of exploration, while strengthening links between industry and understanding , so as to accelerate the pace of business development audit of the audit firm will need to expand the market for survival Lowballing, while the price, the customer's choice, audit institutions will have more space to consolidate its audit market dominant position.

(B improve the supervision system, improve the fairness and normative
On the one hand, the firm should be formed between the mechanism of mutual supervision. So as to enable the accounting firm to establish a sense of crisis, be able to consciously maintain the legal system, make the market more fair and orderly.

On the other hand, should play the role of industry self-regulation committee, a sound regulatory system and operational mechanism, from the macro perspective and the movements of civil audit, irregularities, if from the perspective of monitoring and self-discipline, standardize and improve the audit personnel, to improve civil operation of the fairness of the audit, to improve the development potential of civil audit, then the market share they will not be "big four" holds, the client will also increase the importance of the audit, the audit market so as to lay a good seller by the buyer to the basis of the external environment.

Links to free download http://www.hi138.com (three to learn the advanced experience and enhance their own quality
First, follow the British accounting firm organizational form that allows registered private practice firm, large-scale contract to large business firms, small firm contract volume of business small business accounting market to meet the needs of different levels, is conducive to accounting fair market competition, while to some extent avoid the personal business of secretly undertake firm, to audit the same industry can not only meet customer needs at all levels, can also improve the situation of vicious competition, thereby reversing the direction of the audit market, to audit agencies have market dominance.

Second, the CPA is a high risk industry, the auditor must develop its own fully prepared to do so within the firm establishment of the professional insurance system is necessary. This is equivalent to increases in the auditor's own reward in terms of lower risk, can seriously for the office services to provide customers with true and reliable audit information.

Third, to provide various forms of non-forensic services, while providing non-assurance business, business for its own sake as much as possible with the CPA co-responsibility is relatively small, the risk is small, and will not be customer led.

(D to improve the cultivation of Certified Public Accountants, and strive to enhance the audit Culture
On the one hand, to improve the quality of the auditing profession, expand horizons, from the point of view of many problems encountered in the audit process, to break the mindset, in-depth analysis, emphasizing the values ​​of the shape, made specific comments and suggestions on the other hand In moral qualities, for the interference to experiencing all aspects of the firm position, in-depth analysis and research, they must not scratch the surface, leave it alone, while the legal system to safeguard the fairness and independence of the audit, maintenance of law and the seriousness. to audit spirit and values ​​as the core and foundation of the audit, the audit organization to create a harmonious and positive Culture, play an integral cultural superiority, the audit market to a seller's market changes lay the basis and within the cultural foundation.

(Five standard tissue mechanisms that regulate the price mechanism
Organizations and firms need to regulate the price mechanism itself adhering to the principle of fair and honest and conscious action, of course, need the support of the external environment should be established within the system and improve the Commission's integrated dynamic regulatory system, improve the supervision of transparency and firm organizations and the normative construction of the price the same time, the state should be clean and education in a timely manner, timely disclosure of defects and enhance the public's moral quality, and price issued by the organization for the accounting norms of relevant laws and regulations, so that there are laws to follow.

Only the improvement of standards of audit organizations to establish mechanisms and the price mechanism, in order to establish a more harmonious audit market.

(F harmonious relationship between auditors
For a project, the audit team is a whole level of audit quality largely depend on the collective wisdom of the audit team members, quality and capability, high quality audit firm reputation is a guarantee is an important factor to attract customers Therefore, internal auditors should be a harmonious relationship during the time between members of specific projects for mutual exchange of technology and methods, provide clues to share resources with each other, discuss problems, to improve audit quality, customer loyalty, improve, control of the market initiative.

In the audit industry, the same for all members to conduct the audit of benign exchanges, and create a harmonious social atmosphere auditing high-tech career, not only sensitive thinking, rigorous attitude, communication is essential. Firms have the size, the business has size of the points of difficulty, the market is not just one level of the market, therefore, the audit industry must pass a certain exchanges, in order to achieve a reasonable allocation of resources, and ultimately the harmonious operation of the audit market.

Now how in the post-crisis era audit their own way out, and continue to grow and develop is worth pondering. Realization of the benefits and maximize the value of a long-term project, can not be achieved through cut-throat competition. How appropriate competition, how to market share , how to make the audit market by the buyer to the seller, in a limited market to seize opportunities, make the firms have more options, which are the responsibility of each auditor the audit staff must work together to build a rational and mature audit marketing efforts.

Main references
[1] Peng Tao Ying. Audit quality and audit market [M]. Beijing: Economic Management Press, 2007.

[2] Chen Zhengxing, Zhou Chunsheng. China Audit Culture [M]. Beijing: China Economic Publishing House, 2004.

[3] Mao Yanliang. Non-audit responsibilities of [M]. Dalian: Dongbei University Press, 1999.

[4] Hooper. Audit pricing research [M]. Dalian: Dalian Publishing House, 2009.

[5] tube Jinsong, Zhang Qing. Audit risk management [M]. Beijing: Foreign Economic and Trade University Press, 2003. Links to free download http://www.hi138.com