The Research On Mergers Of Accounting Firms And Audit Fees And Audit Quality

From the development process of China’s accounting firm, it has experienced three merger wave, the first two merger wave formed a number of large-scale firms under the guidance of government policies, but the firm only pursuit of scale, the reform and integration of resources is ignored, the quality of practice did not enhanced. The overall goal of the third merger is "bigger and stronger", features of the merger is reflecting the policy also reflects the market to expand market share, to improve the competitiveness of local firms. Study on the effect of the merger will help to guide and promote the merge smoothly, provide better theoretical support for me accounting firm merger scale development road.Based on the summary of previous research results, this paper using the methods of theoretical analysis and empirical test, conducted an empirical study in-depth on Chinese local accounting firm merger effect not only from the perspective of audit fees and audit quality, but also from the crosswise comparison and the longitudinal comparison angle, empirical test of local accounting firms in the changes of audit fees and audit quality before and after the merger trend. Compared with the previous year’s observation and four years after the merger, and before and after the merger, are produced by the same firm audit company, change of the audit fee and audit quality; Vertical comparison is to observe the audit fees and audit quality of listing Corporation in 2009. The empirical results show that, the audit firm will improve audit quality and reduce the audit fees in order to merge successfully during the merger, after the merge, the audit firms will gradually increase of audit fees, but it is not obvious on improve the quality of audit. We can see, the key to the success of merger is integration after the merger, the domestic accounting firms effect is not good, that is to say, the firm with the rapid expansion of the scale, the brand value gradually establish, it get brand premium, the initial realization of the "bigger and stronger", however, they need to improve audit quality. Based on the above conclusions, Proposals were put forward from the formulation of audit fees, government and accounting firms:the firm should be carefully chosen with object, pay more attention to substantive consolidation, focus on brand management; should give full play to the guiding role of the government, perfect the laws and regulations, create good environment foundation and the audit charge system for firm merger.The domestic study on accounting firm merger of the study from the unilateral, it usually used the data of one or two years before and after the merger, to study their difference. The innovation of this paper is to study not only from the perspective of audit fee and audit quality, focus on the effect after the merger, and extended time series, but also combined with empirical analysis methods to compares the transverse and longitudinal.