Abstract: The implementation of total quality management (TQM) can promote business performance. According to the standard of China Quality Award, this paper identifies the six elements of Total Quality Management (TQM) in CPA firms. By establishing the system dynamics (SD) model of relationship between TQM and performance of CPA firms, the influences of TQM elements on the firm performance are simulated. The simulation results show that: The simulation results show that: the current TQM level of CPA firm is positively related to its performance; the implementation effect of TQM is lagging behind and the promotion effect on performance is not obvious in the short term; among the six elements of TQM, "leadership", "strategic planning", "information analysis" and "human resource management" have more significant impacts on a CPA firm performance.

Key words: CPA firms, TQM, CPA firms&rsquo, performance, SD