The Research On Accounting Firms After Merger Of Government Leading

Global economic integration has brought great opportunities and challenges to our country. In order to promote economic development, our country are gradually from a planned economic to a market economic. However because of our special institutional environment、deficiency of market, market resource alone cannot be configured to promote sustained 、 healthy development. Therefore government regulation as a complement to the market plays a crucial role. CPA through post audit opinion to mark reasonable assurance that financial statements are free of material misstatement due to errors and fraud, so the CPA cans improvement credibility of financial reporting and help investors to achieve more quality decisions. CPA’s industry starts late、develop slowly, coupled with the large international accounting firms have entered the Chinese market and further threaten healthy development of China’s accounting firm. In order to enhance competitive of China Certified Public Accountants, the government unveiled a series of policies to encourage accounting firms bigger and stronger. Under the government policy guidelines and regulatory bodies, accounting firms through expanse to achieve "bigger, stronger." On the one hand, consolidation of the accounting firm’s will result in expansion of the scale, reducing the number of firms, increasing audit concentration. On the other hand, with the merger of accounting firms, a series of internal integration problems will hinder the development of accounting firms. Due to deficiency in China’s market economy, government-led consolidation of accounting firms attracts investors’ much attention. However, following the "Zhongtianqin" collapsed, accounting firms under government-led practitioners merged to become the focus of attention. Object of this study focuses on government-led consolidation of accounting firms and audit risk that existing after the merger, combing audit’s specific business processes, explore the accounting firm’s audit risk control. At the same time, comparing with consolidation of accounting firms under market driven, we carry out some proposals and strategies,hoping that will help the merged accounting firms under government-driven.In this paper, we focus on studying problems related to audit after accounting firms’ consolidation, and conduct a systems analysis and thinking about audit problems after consolidation under government-led, try our best to help solve audit problems of CPAs. In this paper, the existence of government-led consolidation accounting firm audit problems, motivation and the related audit problems, audit problems control recommendations formed the main line. This article analysis audit problems combined with audit business process, audit business process include initial business activities、plan business process、conduct audit procedures and publish audit opinion,and then find the reasons for audit problems.Finally, summarize recommendations from firms and government according to the reasons.