An accounting firm refers to an intermediary service institution that independently undertakes the business of certified public accountants according to law. It is composed of accountants (such as certified public accountants in China, certified public accountants in the United States, chartered accountants in Britain, and certified public accountants in Japan) who have a certain level of accounting expertise and have obtained certificates through examinations. It is an organization entrusted by the parties to undertake business related to auditing, accounting, consulting, taxation, etc. China implements a license management system for accounting firms and certified public accountants engaged in securities-related business.
In China, the system that the government issues accounting certificates and accountants undertake accounting business in society was founded in the Republic of China (19 18- 1928). According to the provisions of the Kuomintang government, anyone who has passed the advanced accountant examination or accountant audit, obtained the qualification of accountant and obtained the accountant certificate issued by the government organ can be an accountant. An accountant may set up an accounting firm to carry out business after applying for registration with the provincial and municipal authorities.
An accounting firm may be established by a registered accountant in partnership. The debts of an accounting firm established in partnership shall be borne by the partners with their own property according to the proportion of capital contribution or agreement. Partners shall be jointly and severally liable for the debts of the accounting firm. An accounting firm may be a legal person with limited liability if it meets the following conditions.