(1) audit services to the challenges facing

Audit services facing the first challenge is to audit services revenue growth gradually slowed down from the industry's intense price competition led to lower profits. According to the U.S. in 1995, an information statistics, in the past six years, H country real GDP growth of 28%, while excluding the effect of inflation, the largest 60 accounting firms audit services revenue is stagnant forward. Although the social audit services to the high demand, but a large number of accounting firms, competition is very intense, it is difficult to make more profit through the audit services, expand their scale. Therefore, the accounting firm full advantage of its independent, objective and impartial professional image, and actively explore new service items is now imperative. For example, the United States Institute of Chartered Accountants set up with accounting firm KPMG, former partners RobenK · Elliott as the President of the credibility of the increase in information services, special \ 'Do Committee (Specid Committeeon AssuranceSer-vices), research to develop new services, certified public accountant varieties the potential to develop further into the CPA's strategic plan in this area. Improve the credibility of the so-called information services, is changed by an independent third party information providers into or report on information provided quality services. In the provision of the service, certified public accountants can provide verification of the reliability of the information is more important is to improve the relevance of information in decision-making.

The Commission also recommended to improve information on the credibility of six kinds of services: (1) for e-commerce reliability, security, providing authentication; (2) the quality of services provided by medical institutions or the results provide authentication; (3) Identification and business issues facing the likelihood and consequences of the adverse information related to quality; (4) the reliability of information systems, such as sound internal control effectiveness; (5) on the business performance indicators to measure the relevance, reliability verification ; (6) daycare hospital quality of services provided the identification.

Audit services is the second challenge facing e-commerce has changed the traditional audit approach. Because the transaction through the Web, written documents are gradually disappearing, while the presence or stored in electronic form, certified public accountant must begin to improve the auditing methods, or notarized copy of their social roles will be degraded. At the same time that the United States Institute of Certified Public Accountants, as the company's financial information will be placed on web pages, the disclosure of financial information must move toward continuity, therefore, should provide the continuity of Certified Public Accountants audit services (Continue Audditing). But the continuity of the audit is not can be realized, the more possible is that the current network authentication (Web Trust), System Certification (Sys Trust), registered accountants to use their credibility on the e-store and trading systems for certification.

(B) management consulting services to flourish.

As the business scale, the different nature of business, business service needs of the accounting firms are not the same. Many customers want an accounting firm providing audit services, while providing other services, such as management consulting services. 50 years from the 20th century onwards, CPA career management consulting services revenue has begun to grow, and maintain a strong momentum of growth. Management consulting services is mainly due to rapid growth: first, management consulting is a value-added services. Audit services often focus on the historical financial information, and management consulting services are based on market demand-oriented, to give customers value-added services, which won the customers. Second, internal restructuring to the accounting firm's management consulting services to bring unlimited business opportunities. At present, very popular abroad, hiring external resources (Outsourcing is not services, that businesses focus on developing core business, while the other part of their operations contracted out to specialized companies. Many companies and even government departments, internal audit, human resources management, financial accounting matters entrusted to work go through. such as the Australian Department of Finance and Management accounting firm PricewaterhouseCoopers, commissioned by Human Resources signed a contract, under the terms of the contract, the accounting firm PricewaterhouseCoopers will provide strategic human resources recommendations, and staff recruitment services. again such as the Arthur Andersen accounting firm for the General Motors Corporation for the annual 85 billion U.S. dollars in economic transactions, including invoicing, payment received, handling accounts receivable, accounts payable and other accounting activities.

With the advent of knowledge-based economy, the scope of the accounting services market will undergo great changes. It predicted that accounting firms should be provided in the next five core services: (1) increase the credibility of information services; vi) management consulting and performance management services; (3) technical services; (4) financial planning services; (5) International services. Looking to the future, the accounting services market is facing rare opportunities for development, is also facing severe challenges. In the 21st century, although the audit services are essential, but the key to the survival of accounting firms is whether the rules without violating the premise of the industry, market demand, has introduced variety of new services to customers to provide value-added services.