The Effect Of Accounting Firm Merger On Audit Quality

The history of global accounting firms can be seen as a history of mergers.In order to occupy a space in audit market and to improve the competitive advantage,more and more accounting firms choose merger as a way of rapid development.Mergers is the product of market economy development,and the main way is that forms big accounting firms.It took more than 100 years for Foreign "eight" to form,but it took only 20 years to merge from the eight to the big five to the big four.The merger wave in China is also in full swing,and there have been four large-scale in the short 20 years.Chinese institution of CPAs has issued a series of documents to encourage firms to make "bigger and stronger" by "marriage".However,there is a successful merger case like Deloitte and there is a merger case like Zhongtianqin's failure.Whether the audit quality coordinated development while the firm is expanding,this has always been the focus of theoretical discussion,some scholars even question whether there is a connection between the merger and the audit quality.Under the background of the consolidation,it is meaningful to study the impact of the merger on audit quality.Ruihua firm,as the "leader of Chinese firms",is a typical case in the merger.On the basis of the factors affecting the quality of certified public accountants audit,the factors that will affect accounting firms layser by layer,and we establishes an audit quality evaluation system.Using the evaluation system,we can analyze the composite scores of audit quality before and after the merger and contrast analysis of the change that related indicators,the conclusion is that the audit quality of Ruihua has improved after the merger.Through the investigation for Ruihua accountant firm,although the merger has had a remarkable effect,the problems that existed before the merger have been improved,but there are some deficiencies in the merger,the reasons for this conclusion may be that firms lack integration experience and ecombined resources have not been effective integrations and they ignore the supervision of audit quality.Finally the paper puts forward five suggestions on how to improve the audit quality : Strengthen the implementation of brand strategy.;Set up professional training system,improve the firm's quality of professionals;Strengthen the supervision of audit quality;Expand the scope of business firms;Promote the informatization process,and we'd like to offer a reference to the accounting firms that will be merging.