The Study On Organizational Form Choice Of Accounting Firm

Different option of entity form means different way of undertaking liability, which is especially important for CPA profession because of its high responsibility to society. So, how should an accounting firm select its most suitable entity form?The article looks at the issue from the point of enterprise theory, explaining why an accounting firm should be a partnership, making a comparative analysis of the three kinds of partnership form as general partnership, limited liability partnership (LLP) and limited partnership, and also discussing the moral hazard problem associated with LLP. On the basis of theory, further examines the differences of accounting firm' s choice to organizational form among American, France and China. At last, uses a questionnaire to survey CPA' s attitude to entity form choice and offers following suggestions to the issue in China:1.Partinership reform in Chinese accounting firms should be impulsed by government on condition that law system has been improved.2. Further strengthens the construction of limited liability partnerships and creates good condition for the development of single form accounting firm.