Analysis Of The Development Of Large Domestic Large Accounting Firms

After several years of evolution, accounting service has become necessary in all walks of life in today's world. This requirement has driven a large number of accounting firms, which acts as an intermediary helping solve the problems of financial operation. In China, there are several well-known accounting firms including Rui Hua and Li Xin. According to statistics, most Chinese accounting firms have a considerable annual output, some even up to billions of RMB. As a result, it can be concluded that China has sprung up in accounting industry, especially in accounting firms, which is in order to adapt to the rapid development of economic life. In addition, despite four recent international scandals causing decline of market share, accounting firm has still occupied an important position in China's certificated accounting industry. Compared to BIG FOUR, China may lack in accounting construction from hardware to software.The gap may be resulted from both domestic and external factors. This paper will research on the reasons of the difference between domestic accounting firms and four internationals according to above aspects. Furthermore, it will put forward relevant countermeasures and suggestions to help to integrate with international standards as soon as possible. Specifically, this paper will analyze domestic large accounting firms with scientific and rational research methods, combined with the industry background and future developing trend and potential, to find out current drawbacks and defects of these firms. While doing this research, the researcher also consults a lot of materials and data, and has some business experience. Taking RH as an example, it will study the obstacles to the further development and suggest that domestic accounting firms should continue large-scale development, expand business issues, strengthen internal management, implement strict human resources system, and build influential brand. Additionally, the government should continue to support and guide the introduction of policies on local developments, establish regulation of non-accounting industry as well as increase penalties against illegal operations.In the first chapter, it will describe the background and conclude by analyzing domestic and international environment in the accounting industry. Moreover, it will briefly introduce the practical significance and research methods of the topic, followed by the advantages and disadvantages of the paper. The second chapter will introduce the major concepts including factor analysis which explores various impact factors that the firm may encounter. Then, the third chapter will illustrate the development process and trend of the industry at home and abroad. In the fourth chapter, combining theory and case, RH will taken as the objective and to be analyzed with relevant evaluation data from authoritative materials. In addition, it will explore the resistance during the development of accounting firms with specific method and tools. Finally, it will propose targeted measures and suggestions for the further development of domestic accounting firms and a summary of the paper.