Research On Avoiding Merger Audit Risk Based On The Total Quality Management Theory

Along with deepening economic globalization and the opening up of our country, number of mergertransactions rising each year, which including the Internet, banking, electronics, materials science andtechnology, food and drug, oil, steel and other industries. Merger and acquisition risk affects not only thetwo parties to the acquisition, but also influence the government, consumers and firms. The accountingfirms of our country are just at the starting stage, scope of business is single and staff mobility is also verystrong. As today’s CPA industry competition is increasingly fierce and accounting firm faces to undertakeall kinds of industry mergers and acquisitions audit business, how to avoid auditing risk and improve firmreputation is a pressing matter of the moment.The total quality management theory originated in the USA, it’s quality control ideas win muchsupport among the public, so far China introduced the theory is gaining acceptance among lots of areas andexperts, such as laboratory, hospital, school, enterprise, agriculture and forestry, they all obtain satisfactoryresult. Therefore the total quality management theory got a further enrich and development. Introduce thetotal quality management theory combined with the audit practice and help the accounting firm avoidmerger audit risk has the theoretical and practical significance.This article first apply total quality management to quality control policy in the accounting firm,separately from the accounting firm perspective and undertake merger audit business perspective describesthe new quality control policy can bring advantages. Secondly, in the actual merger audit business case, thisarticle introduces the application of new quality control policy can achieve the purpose of reducing auditrisk. At last, this paper argues that although introduce the theory of total quality management to theaccounting firm’s quality control policy may need to invest more effort, this new control policy can helpfirms to avoid the audit risk of acquisition and merger and obtain a competitive advantage, it is still worthpopularization.Based on the theory of total quality management, after the definition of related concepts, this articleresearch on actual merger case and explain the total quality management theory can help firms to avoid theaudit risk of acquisition and merger, improving the competitiveness of industry in order to achieve long-term development.