Research On The Impact Of The Merger Of HPTJ And ZT On The Audit Quality Of The Accounting Firm

The accelerated development of global economic integration has put forward higher requirements on the audit service capability and cross-border business capability of accounting firms,which makes domestic accounting firms face unprecedented challenges and need to work harder to improve their professionalism to cope with the current economic situation.International Big Four accounting firms have outstanding advantages in terms of client resources and professional capabilities,while Chinese accounting firms are limited by their scale and have a relatively weak client base and professional capabilities.In this regard,many accounting firms in China choose to merge in a short period of time to quickly enhance the size of the firm to seize the domestic audit market,which has become a trend of the moment.China’s audit market has now occurred four large scale accounting firm merger wave,but in recent years,the merger is only bigger than the strong cases still often occur.If audit quality is not effectively ensured,it will not only limit the flourishing of the audit profession,but also cause disorder in corporate disclosure and bring serious consequences to society.This finding makes academics and practitioners more aware of the importance of improving audit quality after firm mergers,and provides an opportunity to study the specific ways in which firm mergers affect audit quality.The current research on accounting firm mergers in China is mostly focused on large firm mergers,and many of the cases occurred earlier,and there is less research on small and medium-sized firm mergers,and few recent merger cases with timeliness and reference have been studied,and the conclusions are not unified.Therefore,this paper selects the recent case of the merger of HPTJ CPA firm and some branches of ZT CPA firm into RC CPA firm(hereinafter referred to as "H firm" and "Z firm")for analysis,with a view to further exploring the impact of merger The purpose of this paper is to explore the specific ways in which the merger affected audit quality.China’s current domestic research on accounting firm merger cases are mostly focused on the merger of large firms,and many cases occurred earlier,for small and medium-sized firm merger related research is less,the recent occurrence of the merger case with currency and reference is rarely studied,and the conclusions are not unified.Therefore,this paper selects the recent occurrence of the merger of HPTJ CPA firm and some branches of ZT CPA firm into RC CPA firm(hereinafter referred to as "H firm","Z firm","R firm ")as a case for analysis,with a view to further exploring the specific ways in which the merger affected audit quality.Currently,domestic and foreign scholars as well as relevant industry personnel are exploring how to maximize the benefits of mergers,but no definitive conclusion has been reached.Therefore,this paper will further analyze the benefits brought by the merger by comparing the changes of various indicators before and after the merger,and make specific suggestions and appropriate solutions based on the conclusions obtained from the study: firms should clarify the merger objectives before the merger,correctly select clients after the merger,and focus on resource integration.