The Change Of Economic Consequences Before And After CPA Firms’ Combination Based On Double Perspectives

CICPA enacted and issued Opinion on Building Bigger and stronger Public Accounting Firms in May,2006, launching the strategies of building bigger and stronger accounting industry and "Step Out" of Chinese accounting business. Thus the third wave of combination of local Public accounting firms has been raised in China.This article is based on the successful merger case of RSM China which happ ened during the3rd wave of mergers and drawing to existing research results at the same time, to measure the change of KPIs from supply and demand point of views, including quality of audit, the signature concentration of CPA, probability of non-standard comments, charge of audit, structure of customers, advantage in th e industrial and etc. in5years before and after merger. We try to prove and verify our achievements of research by combine empirical research and case study togeth er, we hope to figure out a feasible way to develop domestic accountants firms, an d give a lot of novel hints to them during approaching to "Large-scale" and becom e bigger and stronger.The structure of this paper are arranged as following:the first chapter is introduction, introduces the background, research topic selection purpose and meaning, research methods and frame,structure and contribution point of paper. The second chapter is literature review, from the point of view of the accounting firm to merge at home and abroad and public accounting firm merger and economic consequences research results were summarized, literature review accounting firm to merge from audit quality, audit and customer audit fee, the efficiency of the influence of the company’s share price four Angle and summarizes. The third chapter are the case background, this paper studies the case-Swedish YueHua accounting firm for background analysis:mainly analysis the certified public accountants industry in the state of competition, before the merger of HengXin ruihua YueHua accounting firm with the industry status and income and the ranking the development course of the merger. The fourth chapter from audit market supply of first-with a CPA firm’s real quality from the point of view of the construction measure the economic consequences and three types of index theory analysis, and then through the relevant data consideration before and after five years with controllable accrued profits, signed the concentration degree of the certified public accountants, the qualified audit opinions of the three types of index issued by frequency variation, for HengXin and YueHua luneng ruihua in public accounting firm to provide experience for the merger of the effect of evidence. Chapter five from the first audit market home-textile listed company of customers-from the point of view of the construction market were acceptable to measure the economic consequences of two kinds of indexes and theoretical analysis, and then through the relevant data consideration before and after five years with customer structure and the audit charge two kinds of indexes variation in HengXin and YueHua for luneng ruihua CPA firm’s merger effect offer empirical evidence. The sixth chapte r expound conclusion and the shortage of this paper, and puts forward relevant policy Suggestions.The contribution of the paper lies in:first put forward three indexes: Discretionary Accruals, the signature concentration of CPA and probability of non-standard comments as a measure of suppliers’ frequency-accounting firm of real quality standard, put forward three indexes:audit fees, structure of customers as a measure of customers’ acceptable standard in the market, a more comprehensive system to reflect the effect of combination; Through the analysis of every relevant index changes in the typical cases of RSM China Certified Public Accountants of the third wave of combination, can not only further analytical merger activity on the firm risk control measures and quality control system of the profound influence, but also to the customer can make to the firm and the service level of the produce identity provide more powerful explanation, and then put forward more specific policy recommendations.