Public Accounting Firm Merger's Impact On Audit Quality

As the emergence of domestic audit market is late in our country,there has been 4 waves of merger in the past 20 years in Chinese firms.Policy driven is an important reason.After the merger tide receded,a series of scandals trigger the public query to the domestic accounting firms in the industry.However,does the "bigger" firm mean the "stronger" firm?Can the audit quality be improved by the combination of the accounting affairs?In this paper,through the merger case based on Grant Thornton in the fourth merger wave,we can get the detailed analysis of the changes in the audit quality before and after the merger to explore the effect of audit quality.Firm pursuiting Economies of scale effect,enhancing their market position,International business strategy Become the dominant factor in the merger.The merger case is in full compliance with these characteristics.This paper regard the proportion of non-standard audit opinion,extent of earnings management and accounting firm size as a main three measures.Through the analysis of the case we can draw a conclusion that after the discovery of the merger with the accounting firm,the rate of the firm size,revenue,customer resources,CPA number have not been quickly promoted.After calculating the index statistics of the proportion of non-standard audit opinion and the extent of earnings management,we can draw a elusion that audit quality has not been improved rapidly.The appearance of these conditions may be due to the lack of management on customer resources and human resources in the early stage of the merger.But with the gradual resolution of these problems,the size of the accounting firm,market position and reputation operating income and other indicators have been significantly improved.The audit quality has been further improved.Under the background of the fourth merger wave,the case can give us a lot of inspiration:The merger of the firm should focus on the "essence".In the course of the merger,we should focus on the control of the risk of the merger.Integration of resources and cultural integration after the merger.Relevant regulatory authorities should do a good job in policy guidance,establish and improve laws and regulations and do a good job in the audit of the audit quality control process and the control of the audit.This paper is divided into five chapters,the first chapter is the introduction,the main text divides into four chapters:1.The first chapter is the introduction2.The second chapter consists of two sections.Defining the concept of accounting firm merger,introducing the relevant theory and the combination of a simple,making a note the concept of audit quality and commonly used to measure indicators.3.The third chapter consists of two sections.Analysising and researching on the background of the whole accountant industry,introducing the role of policy driven and market driven in the merger of accounting firms,making a brief introduction of China's four times accounting firms mergerin recent twenty years.4.The fourth chapter consists of three sections.Analysising and researching the mereger case based on Grant Thornton on the whole merger of accounting firms.5.The fifth chapter consists of three sections.Through the analysis of the fourth chapter conclusion,making the revelation of the whole accounting profession in our country,putting forward some policy suggestions.competitiveness of the service industry.