Improve The Competitiveness Of The Domestic Local Accounting Firm

Competitiveness is the key factor which decides the success or failure of Accounting firm (the firms below also refer to Accounting firm). The level of competitiveness of Accounting firm depends on the quality of the services provided to its customers in audit and advisory which to a large extent depends on the quality of the various internal factors, including human resources, culture, procedures, protective measures ,the salary system and so on. So Accounting firm improves its competitiveness mainly through ways as follows:improving the management structure and governance mechanisms; nurturing and developmening harmonious firm culture; absorbing, nurturing,and retaining human resources; improving the quality of services; pioneering the business; expansion the scale and so on. In practice, only the elements above-mentioned are organic combined, institutionalized and acted according to the changing environment, continuously updated, revised and innovated can a Accounting firm lasts long-term high level competitiveness.This paper from five aspects to research how to enhance competitiveness of the domestic local Accounting firms.The first is about the management structure and governance mechanisms of Aaccounting firm: including partner (shareholders) and partners (shareholders) meeting, the Board of Trustees and its professional boards, the board of supervisors, director of accountants and deputy director of accountants, employees ,the internal balance mechanism and the practicing insurance. Internal control is a protect mechanism for firms to prevent the risk in practice and practice control the quality of services.The second tells nurturing and developing harmonious Accounting firm culture: including the relationship between the firm and employees; office staff allocation system; absorping,training and retaining them; nurturing and building harmonious Accountanting firm culture. As an intellectual-intensive industries, Certified public accountants are experts in the industry which lies on the mental work and success or failure depends on the talents it owns. Accounting firm competitiveness is embodied by the staff in the course of practice, and where there are talents there is competitiveness. The third is about the Accounting firm's quality control: quality is not only the lifeline of Accounting firms which is profoundly revealed by a series of domestic and foreign typical audit failures such as Red, Enron and so on, but also the foundation and the integrity of professional obligations as a industry in the public interest. Firms should form a full-quality- control culture.The forth is about the business development of Accounting firm: including business development and categories broadened of the up four international Accounting firm. To expanse the domestic scale of the local Accounting firm, an important precondition is the business sources, particularly high-quality and high-end audit and advisory business.The fifth is about the expansion of the scale of firms, including international accounting firms experiences in expansion of the scale; domestic local accounting firms in the expansion of scale expansion and the scale of integration after the expansion. Currently, the size of China's overall accounting firms are comparatively small, a single operational structure, lagging behind the economic development and domestic large and especially super-large enterprises audit service needs, thus it is more difficult to cope with international competition.