This paper aims to explore the impact of compensation for employees of different ranks on the overall operating performance of accounting firms(hereinafter referred to as firms)and operating performance of the busines...This paper aims to explore the impact of compensation for employees of different ranks on the overall operating performance of accounting firms(hereinafter referred to as firms)and operating performance of the business markets,and provide reference for decision making by firm managers on employee compensation.The results show that 1)judging by overall operating performance,a firm’s income from professional practice increases as the average annual salary of partner accountants,manager-level heads,professional team heads and professional assistants increases,or the proportion of employees with the CPA qualification rises;the number of cases entrusted to a firm increases as the average annual salary of partner accountants and professional assistants increases,or the proportion of employees with the CPA qualification rises;2)judging by the operating performance of business markets,the income from tax service,management consulting,business registration and other business lines increases as the average annual salary of partner accountants and professional team heads rises;the income from public issue of certification documents,tax service and business registration and other business lines increases as the average annual salary of professional assistants rises;a higher proportion of employees with the CPA qualification has a positive impact on the income from management consulting;3)the shorter the firm age,and the greater the firm size,the better the firm’s overall operating performance.展开更多
This paper analyses audit quality control, brain gain, time pressure of CPA, follow-up education of auditors by firms. The reasons of audit risk rising of CPA are discussed. Based on the foregoing analysis, the author...This paper analyses audit quality control, brain gain, time pressure of CPA, follow-up education of auditors by firms. The reasons of audit risk rising of CPA are discussed. Based on the foregoing analysis, the author puts forward some measures about self-construction, processes and others of firms and CPA to reduce audit risk of CPA.展开更多
This study investigates whether accounting firms match the experience level of individual auditors with the risk level of clients in order to control audit risk. We find that accounting firms tend to assign more exper...This study investigates whether accounting firms match the experience level of individual auditors with the risk level of clients in order to control audit risk. We find that accounting firms tend to assign more experienced auditors to non-state-owned clients that typically have higher tendency to engage in earnings management. Such an assignment pattern is more pronounced for non-Big 4 accounting firms. Further analysis suggests that auditors＇ experience helps reduce clients＇ earnings management level, proxied by abnormal accruals, and thus improves the audit quality. This study enriches the literature on the allocation of human resources and the risk control mechanism in the audit services industry, which has been seldom explored in prior studies.展开更多
China＇s share market can be classified into main board, small-and medium-sized board, and growth enterprise market （GEM） board market. This paper, based on the effect factors of audit pricing, empirically analyzes ...China＇s share market can be classified into main board, small-and medium-sized board, and growth enterprise market （GEM） board market. This paper, based on the effect factors of audit pricing, empirically analyzes the audit pricings of 2009＇s annual report of listed companies in ＂Three Boards＂ market with the result that the audit pricing of companies in main board market is significantly affected by size of the auditee, corporate governance, operating risk, and features of auditor etc.. The same result is showed among the companies in the small-and medium-sized board market which is exclusive of operating risk factor, while in GEM board market, the audit pricing is only affected by numbers of auditees＇ subsidiaries and ratio of independent directors etc..展开更多
文摘This paper aims to explore the impact of compensation for employees of different ranks on the overall operating performance of accounting firms(hereinafter referred to as firms)and operating performance of the business markets,and provide reference for decision making by firm managers on employee compensation.The results show that 1)judging by overall operating performance,a firm’s income from professional practice increases as the average annual salary of partner accountants,manager-level heads,professional team heads and professional assistants increases,or the proportion of employees with the CPA qualification rises;the number of cases entrusted to a firm increases as the average annual salary of partner accountants and professional assistants increases,or the proportion of employees with the CPA qualification rises;2)judging by the operating performance of business markets,the income from tax service,management consulting,business registration and other business lines increases as the average annual salary of partner accountants and professional team heads rises;the income from public issue of certification documents,tax service and business registration and other business lines increases as the average annual salary of professional assistants rises;a higher proportion of employees with the CPA qualification has a positive impact on the income from management consulting;3)the shorter the firm age,and the greater the firm size,the better the firm’s overall operating performance.
文摘This paper analyses audit quality control, brain gain, time pressure of CPA, follow-up education of auditors by firms. The reasons of audit risk rising of CPA are discussed. Based on the foregoing analysis, the author puts forward some measures about self-construction, processes and others of firms and CPA to reduce audit risk of CPA.
基金Ye thanks the National Natural Science Foundation of China for financial support （Grant No, 71072145 and 71132004）. Yuan gratefully acknowledges the financial support from the Humanities and Social Science Research Project of the Ministry of Education of China （Grant No. 11YJC630270）. Cheng thanks the National Natural Science Foundation of China for financial support （Grant No. 71272152）. We appreciate the valuable comments and suggestion of the two anonymous referees, All remaining errors and omissions are our own.
文摘This study investigates whether accounting firms match the experience level of individual auditors with the risk level of clients in order to control audit risk. We find that accounting firms tend to assign more experienced auditors to non-state-owned clients that typically have higher tendency to engage in earnings management. Such an assignment pattern is more pronounced for non-Big 4 accounting firms. Further analysis suggests that auditors＇ experience helps reduce clients＇ earnings management level, proxied by abnormal accruals, and thus improves the audit quality. This study enriches the literature on the allocation of human resources and the risk control mechanism in the audit services industry, which has been seldom explored in prior studies.
文摘China＇s share market can be classified into main board, small-and medium-sized board, and growth enterprise market （GEM） board market. This paper, based on the effect factors of audit pricing, empirically analyzes the audit pricings of 2009＇s annual report of listed companies in ＂Three Boards＂ market with the result that the audit pricing of companies in main board market is significantly affected by size of the auditee, corporate governance, operating risk, and features of auditor etc.. The same result is showed among the companies in the small-and medium-sized board market which is exclusive of operating risk factor, while in GEM board market, the audit pricing is only affected by numbers of auditees＇ subsidiaries and ratio of independent directors etc..
