Professional Training and Operational Performance: Considering the Impact of CPA Disciplinary Incidents

The purpose of this study has two folds: (1) to understand whether the audit failure incidents caused by the 2 major corruption cases (Procomp and Rebar) in Taiwan’s history affected the strategy of employee professional training by CPA firms which provide auditing services to the public offering companies, and (2) whether those who invested more on employee professional training had resulted better operational performance. Data were collected for the period of year 1998 to 2013 from “Survey Report of Audit Firms in Taiwan,” published by the Financial Supervisory Commission, Executive Yuan, from. The study used the debacles of Procomp and Rebar to separate the data sets. Results showed after the incidence of Procomp corruption, CPA firm significantly invested in employee professional training more than ever, however, they did not for the periods of before and after the Rebar incidence. This finding indicates that public accountants have different views on these two failed audit cases and come out different professional training strategies. Finally, the study found those CPA firms invested more in continuing professional development had better business performance.