The Study Of Domestic Merger Accounting Firm To The Quality Of Audit

Since the reorganization of 1998,Chinese accounting firms have experienced several large and small mergers waves which are leaded by different reasons.Moreover,most of Chinese accounting firms currently have a tendency to combine emergently.Previously,the merger of many firms aims to meet the statutory standards of practice to stay in business rather than increase competitiveness and improve the efficiency.The reason of the lastest wave is apt to attain more benefit.In particularly this year, the nation established the State No.56 document with specific requirement that in the next 5 years government will give "a major support around 10 core competencies that can provide comprehensive services to multinational operations and the large accounting firms."Today,It becomes more necessary for us to study whether the merger will really improve audit quality;study whether the current phenomenon of merger is reasonable.Thus we can obtain some inspiration from these studies to the transition of current audit market.This paper mainly uses the method of mutual authentication between the specifications and empirical to conclude whether the accounting firms have significantly improved the audit quality after the merger.This paper includes six chapters:the first chapter describes the significance of this research paper and overall review of worldwide current related theories and researches;the second chapter conduct a theoretical research through verbal presentation and simple formula study which concludes that the audit quality has not been improved significantly by the merger of accounting firms;the third chapter gets into the empirical analysis phaseto identify the measurement of audit quality is the earning management,and then establish the simple linear regression model through the impact of earnings management through factor analysis;the fourth chapter is the test of empirical analysis,using two line regression model to determine the maneuverability accruals and final empirical results;the fifth chapter is a brief summary based on the previous chapters and a few suggestions for the insufficient proof of research results;the sixth chapter is a summary of the defects of this research paper. Innovations of this paper are:①The cold thinking of the current situation of the accounting firms merge in theperspective of audit quality②The detailed data analysis of listed audit companies from 2007 to 2009③The argument that there is no significant association between audit quality and the merge of accounting firms. The author holds the opposite argument from the nowadays popular merger tendency and believes the accounting firms should not rush to merge.