The Impact Of The Merger Of Ruihua Accounting Firm On Audit Quality

Audit quality is the core factor that affects the development of accounting firms and also the key to determine the comprehensive strength of accounting firms.In order to improve market share,enhance social influence and promote their own development,accounting firms must improve audit quality through effective means.Driven by both policy and market incentives,the merger of accounting firms has gradually become the main way for them to "grow bigger and stronger".However,as the development of relevant theories in China is still in its infancy,the impact of accounting firm merger on audit quality is still controversial.Therefore,the research on the impact of accounting firm merger on audit quality is of great significance to promote the rational merger of accounting firms in China and avoid blind development.Based on deep pocket theory,scale theory,reputation theory and quasi-lease theory,this paper selects ruihua firm merger under the background of the fourth merger wave as the research case,and studies the changes of audit quality of firms before and after the merger with the research methods of literature and case analysis.Due to the audit quality is difficult to quantify directly,this article from the accounting firm level,level of audit clients,from three aspects of audit market,constructing evaluation index system of certified public accountants audit quality,including firm size,non-standard opinion,talent reserves,audit the customer number,the structure of the audit clients,the audit fee index,market share,market eight secondary indexes such as punishments;The total ranking,total revenue,number of non-standard opinions,proportion of non-standard opinions,number of certified public accountants,number of listed clients,growth rate of clients,asset structure of clients,proportion of clients with different asset structures,overall audit fees,market share,market penalty and punishment publicity are 12 three-level indicators.Through comparative analysis of the changes of the above indicators before and after themerger,the impact of the merger on audit quality is evaluated.The results show that,on the whole,merger has little positive effect on audit quality,and even has a strong negative effect.It shows that the merger only makes the firm "bigger",but not "stronger".On this basis,this paper analyzes the reasons why merger has little effect on audit quality and points out that the awareness of merger risk is insufficient.The main reasons why the audit quality of the merged firm has not been significantly improved are the difficulties in the integration after the merger,the increased difficulty in management,the poor connection between new and old clients and the lack of reasonable audit fee standards.And from the perspective of the firm itself,the perspective of the customer and the perspective of the audit market proposed targeted improvements.The research results of this paper can provide certain reference value and reference significance for the merger of domestic firms.