Zheng Dingwan: China can cultivate more than four firms

Recently, in the Xiamen National Accounting Institute of the University Teacher Accounting reform workshop in an ordinary classroom, China's Taiwan accounting industry, a respected scholar, the former president of the Taiwan Political University, Zheng Dingwan was invited by the Chinese Accounting Society is giving lectures to the class.　　At this time, coincides with the Ministry of Finance held by the accounting firm's administrative supervision working conference just ended.　　By the gap between lectures, the "China Accounting newspaper" reporter on the accounting firm bigger and stronger questions to Zheng Dingwan him an interview. China Accounting Daily: What do you think of China's mainland CPA firm's strategic goal of bigger and stronger? Zheng Dingwan: I very much hope that mainland China can really cultivate one or two international, can be with the "four" equal, or even bigger than the "four" scale, really "go out" of the accounting firm.　　The mainland has the ability to nurture such accounting firms. As far as I know, both the mainland of China and Taiwan, if the market of CPA industry has been monopolized by foreign accounting firms, most of the profits of the industry have been taken away by foreign partners. In Taiwan, for example, the firm's three foreign partners in Taiwan earn as much as more than 70 million NT dollars, compared with one-twentieth per cent for local partners.　　More notably, the three foreign partners have largely taken control of China's Taiwan CPA industry's policies and operations. China Accounting Daily: How do you think China should create an international accounting firm of your own in about 5 years? Zheng Dingwan: I think it is more feasible to choose a mainland accounting firm with the best foundation and large scale to acquire the largest international accounting firm outside the "Big Four".　　Upon completion of the acquisition, the firm may continue to employ local certified public accountants. The mainland to create an international accounting firm, I think, the key point is to establish their own "brand."　　This requires the establishment of a strong research and development Department, comprehensive training of staff to enhance the professional ability of staff. At present, the mainland enterprises to pay the "big four" audit costs are twice times that of Taiwan enterprises, many companies find "four" to do business to see the "four" signs, and do not care who is to do business.　　I believe that in the rapid economic development, the increasing number of listed companies, the business market is large enough in the background, after 3 to 5 years, the mainland through the training of practitioners, and constantly promote the information process and strengthen management, to create such an accounting firm no problem. At that time, mainland enterprises to the United States, Europe, Australia and other foreign capital markets listed, you can hire their own accounting firms to serve.　　Not only that, since the mainland accounting firms have become internationalized and proficient in international accounting standards, as long as their quality of service is high, businesses around the world are willing to accept their services. China Accounting Daily: In addition to these one or two international accounting firms, what do you think the other accounting firms in China should do? Zheng Dingwan: Other accounting in mainland ChinaDivision firms can do national, regional business.　　Of course, the cultivation of talent is very important. There is one more thing to be concerned about, as far as I know, in mainland China, the proportion of "four" partners is roughly: Hong Kong partners accounted for 70%, foreign partners accounted for 20%, and mainland partners accounted for 10%. In my view, this ratio is unreasonable, the mainland partners should be at least 50%, and in which there is real decision-making power, the foreign partners should gradually withdraw at least to reduce the proportion. This is a medium-term goal.