Perspectives from mainland China, Hong Kong and the UK on the development of China’s auditing firms: implications and a research agenda

Richard Macve

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Based on gaining privileged access to interview senior representatives of audit firms, regulatory bodies, financial institutions, universities and other organisations in mainland China, Hong Kong and the UK, this exploratory study presents a range of informed views about the rapid development of China’s auditing profession over the last 25 years. It explores the emerging roles of the firms in the 2nd-tier international networks and among the larger stand-alone firms as challengers to the Big 4, nationally and internationally. It identifies national and international institutional interactions that have shaped and are being shaped by this rapid growth, with particular reference to the overarching role of the State’s shifting strategies to create a domestic profession in China that can compete internationally. The potential consequences, given China’s unequalled size and its expanding global influence, could change the nature and structure of the global profession. A significant contribution of this exploratory empirical study has been to deconstruct the continuing conventional political and academic rhetoric that dichotomises firms into ‘foreign vs local’ and ‘Big 4 vs other’. It contributes new voices and alternative perspectives to the emerging literature on the glocalization of large professional services firms and suggests new opportunities for future auditing research.

Keywords: Chinese auditing profession; International Auditing Standards (ISA); Big 4; 2nd-tier audit networks; international professional service firms (IPSFs); auditing research (search for similar items in EconPapers)
JEL-codes: F3 G3 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2020-11-09
New Economics Papers: this item is included in nep-acc, nep-cna and nep-isf
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Citations: View citations in EconPapers (5)

Published in Accounting and Business Research, 9, November, 2020, 50(7), pp. 641 - 692. ISSN: 0001-4788

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