Research On The Merger Effect On The RH Accounting Firm Audit Quality Case Study

The development and growth of accounting firms have internal growth and external growth. Accounting firm’s growth path is the same, the audit market in a large extent can be regarded as the history of the accounting firm merger, which is modern accounting firm in the fierce competition environment, in order to adapt to the changing market and competitor to make changes. Since 1980s, as an important task of social audit, we must improve the size and structure of the accounting firm, hope to achieve a wider range of integration, optimize the allocation of resources, optimize the allocation of resources. 2007 the Chinese Institute of Certified Public Accountants issued on promote accountants big and strong opinions, promote the third firm merger wave, the CPA profession in China has rapidly expanded, accounting firms also hope by seeking growth of mergers and acquisitions, industry expertise and service diversification, so as to improve the audit quality. Therefore, in the wave of mergers and acquisitions is becoming more and more hot today, the study of the merger of accounting firms can bring the scale economy and improve the audit quality of the important significance. The RH accounting firm, for example, of audit firms of the accounting firm merger effects on audit quality, mergers and acquisitions for Chinese certified public accountants to provide some suggestions.In this paper, RH accounting firm, for example, we can see that the merger RH accounting firm did not improve audit quality and did not achieve the fundamental purpose of the merger. The reasons for this are many, such as policy uncertainty, special background, discord and other resources, these reasons can be attributed to the following two points:First, the Chinese local accounting firms lack their own brands rather than local accounting firms themselves core competitiveness. According to the theory of reputation, brand and core competitiveness accounting firm is the foundation of the development of the accounting firm. In order to survive and develop in the fierce market competition, the lack of brand and core competitiveness it is almost impossible. Starting two accounting firms merge is not the same, the integration of resources has not really implemented. CPA cannot really be combined. If the combined size of the accounting firm is expanding, and there is no strength, too many CPAs and accounting firms to pursue their stakeholders, and even beyond the bottom line of ethics and social responsibility, the accounting firm will audit quality bring a very negative impact.