The Study Of Influence On Auditing Quality Caused By Accounting Consolidation Types

With the development and growing of market economy, company businessgradually develops in the direction of diversity,which makes the roles ofaccounting firms in market economy become more and more important. In orderto seize the huge cake of our auditing market，foreign accounting firms flock toour country which brings enormous challenges to us. Thus, in order to react tothe challenges, the Chinese Institute of Certified Public Accountants officiallyissued Opinions on the promotion of accounting firm development bigger andstronger given by China Association of Certified Public Accountants on May13,2007, which points out the right direction for accounting firm to develop biggerand stronger. Under such a background, we set off the merger waves ofaccounting firms. This article carries out research on merger situations ofaccounting firm in domestic and foreign. It studied reasons and motivations ofmerger and acquisition from the backgrounds of Chinese characteristic system.Whether to improve the audit quality or to meet our government for certifiedpublic accountants qualification requirements they have to merger? Based on theanalysis of firm merger cases from2007to2011, this article studies whetheraudit quality improves or not after the merge.The oretical analysis and the research hypothesis are the research basis andempirical test design and empirical test are the research means, this article carriesout research on the consolidation types of accounting firm to audit quality. Thecontents mainly include the following three aspects. Firstly， the articleintroduces research background, purpose, significance, research status at homeand abroad and the main research methods. Secondly, it details the theory ofmerger type and audit quality of accounting firm which includes accounting firmconsolidation types, merge status quo, motivation and the merge risks as well asthe scale theory (reputation and the deep pockets) and the definition of audit quality. The third part introduces research hypotheses, sample selection, datasources and chooses the three indicators of audit fee, maneuverability andinterest accrued to measure the audit quality. At last, this article carries outempirical test with Jones model to analyze samples and approves the samples`rationality through T test. Finally, it draws conclusions which it has nosignificance to improve the audit quality through strong and strong firms merger,but it has significance to improve audit quality through strong and weak firmsmerge.