A Study On Current Situation And Trend Of Supervision Of The Accounting Firms In China

With the rapid development of human society, as an important part of the economic structure, accounting firms play an increasingly important role in the maintenance of market economic order, promoting market efficiency, ensuring the further deepening of economic reform and improving the rationality of the allocation of social resources.Especially since the reform and opening up, China's CPA industry, through reconstruction and ongoing development, has made remarkable achievements. At present, there are more than 7400 accounting firms, more than 85,000 Practicing Certified Public Accountants, and nearly 30 million people practicing certified public accountants. Certified Public Accountants' scope of practice and target is growing, and industry regulatory standards are steadily improving, the relevant legal system is basically sound, social influence and international voice becomes stronger, the industry has become indispensable to promote the healthy development of economic and social forces.However, at the same time, duing to various reasons, the accounting information distortion is endless, and It had a tremendous impact on China's economy especially in the financial markets and capital markets, seriously damaged the interests of investors, while the public accounting firm on integrity is also a significant challenge. It is clear that strengthening our accounting firms'supervision, improving our accounting firm' audit level, accounting firm's supervision of China's innovation is imperative.In this dissertation, the Author clarifies the theory of the origin and development of regulatory context of accounting firms from a large number of literatures, and uses regulatory theory to elaborate the meaning of accounting firms and principles of supervision, and through case studies, to analyze the status of China's accounting firm, combining research results of Foreign accounting firms supervision and China's specific conditions. Thus we will summarize some of our viability and operational supervision trend of the accounting firm.Chapter One:Introduction. This part introduces the research background and significance, research themes, research methodology and research status at home and abroad. Chapter Two:Supervision Theory. This part defines supervision firstly, then analyses relevant supervision theories of accounting firms, and then expatiates basic principle of accounting firm supervision.Chapter Three:Current Situation of accounting firms regulation in China. This part mainly studies following two themes:first, Current Situation of China's regulation of domestic accounting firms; second, Current Situation of China's regulation of foreign accounting firms.Chapter Four:Comparison and Experience of Accounting Firms Supervision in Foreign Countries.This part studies accounting firms in American and Japan. On the one hand, the dissertation analyses significance adjustment of accounting firms supervision in American recently and its influence to accounting firms supervision in our country; On the other hand, It studies FEE's reaction to CPAAOB's draft framework and discusses the supervision trend of accounting firms in our country.Chapter Five:Trend and Proposal of Accounting Firm Supervision in China. This part also discusses two themes:one is trend and proposal of domestic accounting firm supervision, the other is trend and proposal of foreign accounting firm supervision.This dissertation starts from the accounting firm's regulatory theories and principles, and on the basis of successful experience from domestic and international regulation on the accounting firm of theoretical research, so we can summary the future of China's accounting firm's regulatory trends to provide guidance for China's sustained and effective supervision of accounting firm. In terms of methods, the writer combines theory and practice, based on foreign experiences, through specific case studies, in close connection with China's current regulatory practice of accounting firms to present my future regulatory path selection.The innovation of this dissertation is its' new research ideas. Former researchers usually studies measure of accounting firm supervision directly, but this dissertation firstly analyses current situation in our country and experience in foreign countries, and then puts forward the reasonable and feasible trend of accounting firm supervision, based on these research, this dissertation solves the new problems in practice and makes several suggestions to continuingly improve standards of accounting firms supervision in China.