Research On The Mergers Between Local Accounting Firms In China

With the gradual realization of China's WTO accession commitments, the opening-up degree of accounting audit services market increases noticeably. Confronted with the competitions and challenges of international accounting firms, CPA profession needs to call for and hasten the birth of a number of large-scale and strong local accounting firms to shoulder the historical responsibility. In this historical background, the merger of local accounting firm has become an important phenomenon, and the scale and frequency of the merger will be getting higher and higher. However, because of emergency tendency existing in most local accounting firms currently and lack of in-depth and meticulous analysis of the merger feasibility, there is many problems exposed during the merger process. Under such circumstances, we should be keep our mind sober, realize the situation correctly, and analyze the current status and existing problems of the merger of local accounting firms rationally. Therefore, a systematic and in-depth study to this topic will be beneficial to the work of guiding and promoting the merger smoothly, and will provide better support to large-scale development of China's local accounting firms through the merger process.In this paper, main content of Part 1 to 6 are as follows:Part 1: Introduction. It describes the background of the paper, the significance of topics, research methods and the purpose of the article.Part 2: Literature Review. It summarizes the theoretical results related to the mergers between accounting firms both at home and abroad in order to lay the theoretical foundation for later study and discussion.Part 3: The paper reviews the history of CPA profession in developed countries and analyzes the main character and the motivation of the mergers between accounting firms, which will be a certain reference to China's local accounting firm's merger practice.Part 4: After presenting the shortcomings of the audit market structure and scale operation, the thesis analyzes the need of the merger of China's local accounting firms. Through the recalling of two experiences of the merger waves in our country and analysis of ZhongTianQin merger case, the paper summarizes the issues emerging from the merger process, compares and analyses the current three merger models of the China's local accounting firms.Part 5: Based on China's local accounting firm merger status and advanced foreign experience, this paper proposes targeted advices to promote the merger work of local accounting firms effectively.Part 6: Conclusions. It sums up the major research results, emphasizes innovation points and analysis the limitations of the research and suggestions of the follow-up study.