Research On The Impact Of The Merger Of Accounting Firms On Audit Quality

The topic of merger of accounting firms is common.The international "Top Four"accounting firms have been merged several times in the past 3 centuries.The accounting firms in China have also undergone four large-scale mergers in recent decades.In the process of promoting the merger of accounting firms,the CPA has issued a series of relevant documents to promote the "bigger and stronger" of the internal capital firms,and the firm itself also actively carries out the merger in order to meet the demand of the policy and the market.However,when the merged firms become bigger,do they really achieve"strengthening"?What is the impact of the merger on the quality of the audit?Before this,many scholars have done a case study or empirical study,but there is no unified conclusion.On the basis of the past research,this paper will further analyze the influence of the accounting firm merger on the audit quality.This paper reviews and reviews the related research on the scale of accounting firms and audit quality at home and abroad.It is found that most of the studies are based on one of the factors and rarely have a comprehensive analysis.This article will take the accounting firm as the case,from the firm itself,the customer and the market three.From the 6 aspects of revenue,audit quality,customer structure,audit fees,market share and market concentration,we compare the data between the 7 years before and after the merger,and compare the data between the Ruihua and the international "four major" in the same period,to study the audit of the merger before and after the merger.The change of quality.The analysis of the audit quality indicators of Ruihua shows that the overall audit quality improvement after the merger is not obvious.Although the scale of the firm has expanded unprecedentedly,the professionalism and independence of the audit work have not been improved,and there is still a big gap with the international "four major".Combined with the merger background of the accounting firm,there are two reasons for the weak improvement of the quality of the audit after the merger.First,when the Chinese CPA and other regulatory departments are promoting the merger reform of accounting firms,they blindly pursue speed and ignore efficiency;Second,after the merger,accounting firms did not strengthen the integrated management of the total branch offices and cultural integration,resulting in no improvement in the overall audit quality.The shortcomings in the development of Ruihua are also common in local accounting firms.From the point of view,finally,in the future development of local accounting firms in China,two suggestions are put forward from internal management and external supervision.