Research On The Influence Of The Integration Of The Accounting Firms On Audit Quality

Under the background of economic globalization,the international "big 4 " constantly occupy the audit market in China,domestic accounting firms are facing enormous competitive pressure.Under the guidance of relevant government's policies,many accounting firms have joined the wave of mergers in order to create new value and seek greater development space.Some firms have expanded their size through mergers,but have failed to create new values and achieve the ultimate goal of mergers.According to the theory of" value creation of merger",the merger transaction can only realize the transfer or assignment of value but it does not create value.Because the merger of the firm failed to create new value,the integration is not in place.It is the key to optimize the integration of the resources of the accounting firms to reduce the gap with the international firms,to seize the market share,to enhance their competitiveness and to improve the quality of audit services.After the three merger integration,the firm has entered a stage of steady development,but the degree of integration after the merger is not the same.Some firms have successfully passed the merger integration,achieved success.But there are some firms in the merger process only focusing on the integration of physical resources(Fixed assets,labor force,etc.),ignore the slow effect of the invisible resources(management system,customer resources,office culture,etc.).As a result,the combined effect is not ideal or even the failure of the merger.In this paper,the influence of the degree of integration on the audit quality,which can provide a theoretical basis for the problems in the integration process or the firm which lacks of integration and promote the deepening of the integration of the merged firm,even improve the quality of Certified Public Accountants audit.In this study,the audit quality of CPA firms are used to breakthrough.On the classical research results of the integration of accounting firms and audit quality,Looking on the"reputation theory"?"deep pocket" theory and scale economy theory as the theoretical support of the full text.First of all,through the analysis of integration motivation,accounting firms after the merger integration process in exist problems and causes,and the degree of'integration of theory and its influence on audit quality of accounting firms after the merger,explore the degree of integration of different influence on the audit quality of CPA.Secondly,the 7 firms were merged in 2009 and the audit of the listed company customers as empirical samples,they establish regression model that the degree of integration after the merger of accounting firms and audit quality is significantly related to the conclusion.Finally,aiming at the integration process of accounting firms in the previous analysis,from human resources,governance structure,standards of practice,culture and customer resources five aspects put forward optimize the merger integration and improve audit quality measures,providing reference and inspiration for the integration of China's accounting firm.