The prominent features of the accounting firms industry are relatively high concentration of business. The characteristics and difficulties of its internal governance are mainly reflected in the following aspects:
1. The practice risk of accounting firms is asymmetrical to their own ability to bear risks. Once serious quality problems occur, the economic compensation will be beyond the承受ability of the firm, which will inevitably lead to bankruptcy.
2. Certified public accountants and assistant staff work separately, and they are required to have high quality and efficiency.
3. High requirements for the comprehensive qualities such as professional knowledge and practice experience of practitioners, especially certified public accountants.
4. It's difficult to ensure fairness in internal distribution. Most employees of accounting firms have a low proportion of fixed income, the evaluation system is not perfect, and the transparency of salary distribution is not high.