This study investigates the effects of professional training and manpower on performance of audit firm under different organization type. Empirical data are obtained from the 1989-2002 Census Report of Audit Firms in Taiwan. In this study, performance is defined as total revenues deduct total expenditures with partner's salary added back. Total audit firms are divided into three categories in terms of their organization type, i.e. big-sized, medium-sized, and small-sized audit firms. Empirical results from univariate test show that the performance of audit firms with high professional training and high manpower are significantly better than that of audit firms with low professional training and low manpower. In addition, regression results indicate both professional training and manpower have positive effects on performance. In total, results above imply that professional training and manpower make a positive contribution to the operation of audit firm.
International Journal of Management 25(2), pp.336-347