Research On Merger Risks And Coping Strategies Of Accounting Firms

Since the third wave of merger,some local big firms have achieved leapfrog development.Among them,Ruihua certified public accountants is a leader in the domestic audit industry.In2013,Guofu Haohua certified public accountants merged with Zhongrui Yuehua certified public accountants and changed its name to Ruihua certified public accountants.Guofu Haohua certified public accountants merged Shenzhen Pengcheng certified public accountants in 2012.Since 2017,the scandals of audit failure of Ruihua certified public accountants have been exposed continuously,and its operating revenue began to decline significantly.During this period,there were many audit failures,such as kangdexin audit failure,Zhenlong specialty audit failure,Huaze cobalt nickel audit failure and so on.This paper summarizes all the penalties of Ruihua certified public accountants in recent years.It is found that among the 19 audit projects with violations,6 are brought by the former Shenzhen Pengcheng certified public accountants,accounting for 31.58% of all the violations.In view of this phenomenon,this paper studies the risks and avoidance strategies of the merger of Ruihua certified public accountants and Pengcheng certified public accountants.Starting from the merger case of Ruihua accounting firm,this paper uses the case analysis method to study the merger risk and avoidance strategy of accounting firm.This paper selects all A-share listed companies audited by zhongruiyuehua certified public accountants,Ruihua certified public accountants and Pengcheng certified public accountants from 2010 to 2015 as the research sample,and explores the merger risk from the two dimensions of the risk caused by the improper selection of merger objects and the integration risk after merger,from the aspects of audit quality,audit customer selection,human resource integration,customer resource integration and so on,It also puts forward some suggestions to avoid the two risks.The first two sections introduce the research background,research significance and research methods,and briefly introduce the research ideas of this paper.The second chapter is literature review,which refers to the research status of the merger risk of accounting firms,reviews the relevant literature on the definition and classification of the merger of accounting firms,the merger effect of accounting firms,the classification of merger risk and the risk of resource integration after the merger,and finds that the current Research on the merger of accounting firms pays more attention to the economic consequences after the merger,There are few studies on the merger risk of accounting firms.The third and fourth chapters are case introduction and analysis,which mainly introduces the beginning and end of several mergers of Ruihua certified public accountants and the audit failure over the years.Starting from the two dimensions of the risk caused by the improper selection of merger objects and the integration risk after merger,this paper makes an analysis by using multiple indicators such as audit quality,audit customer selection,human resource integration and customer resource integration.The fifth chapter is the research conclusion.It is found that Ruihua has the risk of improper selection of merger objects and insufficient integration after merger.In terms of customer group quality,before the merger,Shenzhen Pengcheng tended to undertake customers with higher risk level,which shows that there are great differences in customer selection between the two.Zhongruiyuehua has the risk of improper selection of audit customers.In terms of audit quality differences,the average number of signatures of each signing accountant and each combination of signing accountants of zhongruiyuehua are less than that of Shenzhen Pengcheng,which indicates that the audit quality of Shenzhen Pengcheng is lower than that of zhongruiyuehua in terms of quality control characteristics of signature concentration,which has certain risks.After the merger,the original Shenzhen Pengcheng team still undertook a high proportion of St customers,with high customer risk;After the merger,the audit fees of the three internal teams of Ruihua accounting firm vary greatly.The audit fees of the original zhongruiyuehua team are relatively low,which may be motivated by low price solicitation,and the audit fees will be continuously reduced during this period;In terms of the proportion of non unqualified audit opinions,the audit quality of the original Pengcheng team has decreased year by year in the four years after the merger,and is gradually lower than that of the original zhongruiyuehua team,indicating that after the merger,the audit quality of the three teams in Ruihua Institute has not reached convergence and there is an integration risk.The sixth chapter is the research suggestions.