Analysis Of The Motivation And Economic Effect Of The Combination Of The Intermediate Audit And Huaying Wuzhou

In order to improve the development of China’s CPA industry and promote the“going out” strategy of enterprises,in 2007,the China Association for Certified Public Accountants issued the “Opinions of the Chinese Institute of Certified Public Accountants on Promoting the Enlargement and Strengthening of Accounting Firms”,which marks the third accounting firm in China.The second wave of mergers kicked off.Since then,the cases of mergers of domestic firms have emerged in an endless stream,but whether the merger has truly realized that the firm is “bigger and stronger” has different opinions.In November 2013,China’s formerly ranked 20 th Huaying Wuzhou Office merged with the original 24th-ranked China Audit International Office to formally establish the China Audit Wuzhou Certified Public Accountants Office.In the second year after the merger,the mid-term review Huaying Wuzhou successfully ranked among the top 20 and continued to consolidate this position in 15-17.Although the merger of the two major firms is not enough to make China’s Chinatown Wuzhou rank among the top in domestic firms,the merger has also raised the visibility of the firm to a certain extent.On the surface,the effect achieved by the merger of Huaying Wuzhou is very significant,but in fact,whether the China-Wuhan Wuzhou really achieves the goal of“bigger and stronger” still needs further research and discussion.This paper mainly uses the case study method to study the merger of the mid-inspection in 2013 and the Huaying Wuzhou.First of all,in terms of motivation,this paper combines the specific conditions of the two parties at the time to study,and concludes that the merger of the firm is due to the qualifications of securities and futures,compliance with national policies,market share,re-shaping professional quality,etc.,and points out the relevant existence in the merger.problem.In terms of economic effects,this paper analyzes the impact of mergers on income,number of CPAs,average customer assets,number of customers,audit quality,etc.from the perspective of the firm and the customer.The study finds that the total revenue growth after the merger Unstable,even in some years,there has been a seriousnegative growth;the average business income of teachers is unstable;the audit fees continue to rise,but the level of fees is still small compared with the first-line;the average customer’s assets are going through a period of time.After the decline,it has increased and has continued to grow in recent years.From the perspective of the number of A-share listed companies,the number of China-based China customers after the merger has declined,and the firm’s attractiveness to emerging industries has gradually declined.Stable growth;in terms of audit quality,this paper proves that the audit quality of China Merchandised after the merger has been improved by using non-standard audit opinions and revised Jones models.Finally,this paper proposes relevant countermeasures for the problems in the merger and the economic effects.