The Probe Of Accounting Firm Merger In China

Nowadays, the capital market has entered the international era, the great swirl of the international flows of the capital involved the CPA profession from all the countries to the great tide of the internationalization. Since joining the WTO, the communications of China and other countries and regions of the economic and trade has further strengthened, China’s enterprises and accounting services market is gradually integrated into the international market. On the one hand, the International development of the Chinese enterprises required the international development of accounting services; on the other hand, it has to face to the fierce competition of the international market which has become increasingly open in the accounting market. Currently, The opening-up degree of China’s audit market continue to increase, the "big four"(Price Waterhouse Coopers, Ernst&Young, DTT, KPMG)as the representative of the international accounting firms establish branches or members in China, and compete with our local accountant firms to seize the Chinese market resources. Under the guideline of the series policies, the Chinese public accounting firms have through the large-scale development of merger since2000, but we find the consolidation is not only the splice of two accounting firms. There will inevitably be conflicts after the merger due to the differences between the two accounting firms, and these conflicts will impact the development of the merged accounting firms. However, because of emergency tendency existing in most local accounting firms currently and lacking of the resources corresponding to the integration of measures, there are many problems exposed during the merger process. Such as the improper targeting, lacking of the feasibility study, Audit quality control to weaken, lacking of the organizational integration, The adverse effects on the psychology and behavior of employees, cultural conflict resulting from the merger. Therefore, we should analyze the current status and existing problems of the merger of local accounting firms rationally. Based on advanced foreign experience, this paper proposes some advices to guide and promote the merger work of local accounting firms effectively. It can provide better theoretical support to the large-scale development of China’s local accounting firms through the merger process.In this paper, main content of Part1to6are as follows, In addition to the introduction and conclusion, Part1:the accounting firm merger Overview:This paper describes the basic content of the firm merged our firm associated with the success of the feasibility conditions, specifically from the principal-agent theory, the theory of economies of scale, efficiency theory, government intervention theory analysis; Part2: the merger of accounting firms in China and Its Causes:Discusses the accounting firm in China to three waves of the merger, and cited a typical case of the three merging model, described the problems in the merger of accounting firms in China, and appropriate analysis of the reasons;Part3:The merger process and experience of the international accounting firms:The paper reviews the history of the "big four" and sum up the effect of the mergers between international accounting firms, which will be a certain reference to China’s local accounting firm’s merger practice;Part4:The measures to promote the China’s accounting firms to merge:Based on China’s local accounting firm merger status and advanced foreign experience, this paper proposes targeted advices to promote the merger work of local accounting firms effectively. Such as strengthening the role of government and industry associations, adjusting the structure of the audit market, taking measures on the integration of resources.