The Research On The Relationship Between The Accounting Firm Merger And Audit Quality

Consolidation is a path of the accounting firm to become bigger andstronger,without a large firm in the world is formed through its owndevelopment.Since2001, domestic and international accounting firm merger ebb andflow.Due to merging new large firm produce,the domestic audit market patternchanging.Whether to adopt new consolidation, or is absorbed,all for the"bigger andstronger" goal.The third consolidation wave has a promoting of national policy, butalso a CPA to seize market share to expand the brand’s strategic needs.In recent years,the government issued a series of policies and measures to encourage and promoteaccounting firm merger,for the development of the accounting profession requires.After merging is the accounting firm can really achieve "bigger and stronger""goingout" strategy goals?Whether it can improve the quality of audit services after themerger?These are questions worth our thinking.In this paper,we use CPA audit quality before and after the merger as a startingpoint,and from the theoretical to analysis the internal and external reason to improveaudit quality.On the basis of theoretical analysis we use14typical merger accountingfirm as the research object, and1634companies as the sample.Through descriptivestatistical analysis and regression analysis the relationship between different ways ofmerging and the audit quality before and after the merging.The research resultsindicate that, in the short term accounting firm after the merger audit quality is notsignificantly improved;The consolidation and absorption merger there were nosignificant differences in improving audit quality.The reason maybe due to thegovernment promoting the merge,thus a part of firms merge for achieve aqualification requirements. Therefore some firms had no substantial merger, themerged integration is impossible.Meanwhile, the combined presentation on auditquality may take a considerable period of time,and the merger integration isimportant.As limited to the objective reason, the merging firm may not completeintegration in the selected research period.Combined with the unique system environment of our capital market led to insufficient customer demand for highquality audit services, CPA have no incentive to provide high quality audit services.From the development process of the foreign audit market, merger is the onlyway for the accounting firm development.However,as our special market environmentmerger may not suitable for all domestic firms.Although merger can expand the firmsscale in the short term,but it can not hide the firm’s own question.Blind to do biggerand stronger for domestic accounting firm is not a good thing.Firms should find theirown market position,and make a good quality control,improve the corecompetitiveness is the sustainable development.