The Research On The Relations Of Accounting Firm Merger And Audit Quality

Since restore CPA system in the early1990s, CPA firms in China experienced three times larger wave of mergers, but the reason of mergers are different. The first comes from decopling restrucyuring, the second is dominated by the government, the third is the wave since2006. The first two times due to CPA firms’s restructuring or to meet some conditions, are not voluntary and in order to enhance their competitiveness, improve the efficiency,ect. The third merger since2006is for their own economic intrests, with the support of government.The association propsed the note "do more bigger and stronger", asked clearly"developing10firms which can serve China enterprises to go out and provide comprehensive professional multinational services in5-10years." On July21,2010,the ministry of finance and administration jointly of industry and commerce issued the paper,"push large and medium-sized accounting firm use special ordinary partnersip organization, and promote our accounting firms do bigger and stronger". The system innovation remove obstacles for the further extend of the firm, enlarge possibilities of merger, provid the institutional basis for the development. In the background of merger and restructuring, analysis the reasonalitity of current merger boom, through studing our accounting firms with improvement of audit quality.This text use the merger and audit quality as the breakthrough point, study the classic research results, add the reputation theory,"deep pocket" theory and scale economy theory as the theoretical support. In the study of specific problem, first of all, distribute questionnaire survey and analysis the causes of the merger, the present situation and the existing problems of the merger, based on this, using the data of experiment analysis the influence on the quality of audit. Secondly, using merger firms in2008and their listed company customers as the sample, build a multiple regression model to prove merger is no relationship with audity quality. At last, analysis the problems in the merger, give the advices from macro and micro two aspects, provides reference and enlightenment for the transformation of audit market and the future development of the intermediary organizations.