Research On The Interior Governance Of CPA Firms

CPA firms are the product of market economy, which is also the condition for their existence and development. The development of CPA firms is of great importance to maintain economic order and effectively safeguard economic system. Since the reconstruction and recovery of Chinese CPA system in the early 1980s, our country's CPA firms have made great improvements in just these 20 years. However, there are still big gaps in practice qualification, scale, business scopes, and degree of internationalization between CPA firms in China and developed Western countries, because we started late. Along with access into WTO and further opening-up of CPA service market, opportunities and challenges co-exist for CPA firms in China. How to catch up with international contemporaries as soon as possible and compete with them in the future international CPA service market, which is the stress test for CPA firms in China.The interior governance of CPA firms concludes ownership structure and distribution system, human capital management, performance appraisal and excitation mechanism, construction system of partnership culture, choice of entity forms, and etc. Due to some reasons, for example, the incompleteness of the privatization process of our country's CPA profession, which results in some problems. First, unreasonable ownership structure with single big shareholder universally exists in firms, which once played an important role in the early stages of CPA firms'development, but will go against their continuous growing. Second, the phenomenon of staff structure aging and knowledge graying becomes an obstacle to CPA firms'strengthening and expansion. Third, perfect system of performance appraisal and excitation mechanism is quite necessary to recruit and retain right people. And lastly, harmonious culture of partnership can promote the perfection of the interior governance mechanism of CPA firms. Therefore, the interior governance mechanism of CPA firms is a rounded system, coordinated development of every aspect can lessen the internal friction, if things continue in this way, the strengthening and expansion of CPA firms cannot be an empty talk.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. Limited liability partnership which is mentioned in the new version of laws on partnership enterprises is the system basis of firm's strengthening and expansion, and the promotion of this entity form will be a must-choice for our country's CPA firms'strengthening and expansion.