The Future Structure of the Global Accounting and Auditing Profession: Western and Chinese Perspectives

Friday, 3 July 2015: 8:30 AM-10:00 AM
TW1.1.02 (Tower One)
Richard Henry Macve, LSE, London, United Kingdom
Shuwen Deng, SSE, Shanghai, China
We explore the history of the relationships between the international accounting and auditing firms and the Chinese government’s initiatives to create, develop and regulate an indigenous profession, in the context of the translation into China of international standards and the rapid growth in its stock-markets and in its international trade and investment. Drawing on 28 interviews we have conducted with audit firms, regulatory bodies and universities in the UK and in mainland China and Hong Kong, we explore the potential of the Chinese audit firms in the ‘2nd-tier’ international networks and among the large ’stand alone’ firms to rival the ‘Big 4’ in global reputation for quality. Our analysis problematizes the prevailing identity stereotypes of both ‘Big 4’ and ‘indigenous’ firms in China and brings out important aspects of the ‘Chinese characteristics’ that may now prove to be significant in the future global development of accounting and auditing.