A Study Of The Consolidation Effect Of Accounting Firms

China's CPA industry has made rapid development since it got the resumption.While comparing with the international large-scale accounting firms,China's accounting firms still leave a gap in the scale and audit quality.Over past twenty years,under the leadership and promotion of the Ministry of Finance and the China Association of Certified Public Accountants,China's CPA industry has set off a number of mergers and acquisitions,which aims to guide accounting firms to be standardized and improve the market competitiveness,as well as gather the resource into the superior.However,from the perspective of audit,there are lots of audit-failure event and large-scale accounting firms was occasionally listed on the punishment roll of supervision departments.We have to consider the following issues:How does the merger&acquisition of the accounting firm affect the quality of the audit? What is the combined effect of consolidation? Obviously,it's essential to study about the above questions.This dissertation chooses Lixin Accounting Firm as the research object.On the basis of revising the relevant theories about merger&acquisition and audit quality of accounting firms,the paper adopt the method of comparative analysis and T-test analysis to carry the research of the effect of consolidation of Lixin Accounting Firm.More specific,this dissertation compares the income changes,the change of the number of certified public accountant,the change of the quality of employees,as well as the change of the number and distribution of clients of listed company to reveal the issue existing in the process of merger&acquisition of Lixin Accounting Firm.Using the method of T-test analysis to compare the differences of two different accounting firms in auditing fares and nonstandardaudit suggestion ratio before merger&acquisition,the audit-quality difference of the same accounting firm before and after merger&acquisition,as well as the difference of two different accounting firms in auditing fares and nonstandard audit suggestion after merger&acquisition.This paper also analyses the change of difference before and after merger&acquisition,soas to identify the effect of consolidation of Linxin's merger&acquisition.According to the research,before getting merger&acquisition,it exists audit-quality difference in different accounting firms.As for the same accounting firm,it hasn't the obvious audit-quality difference before and after merger&acquisition.While,after having got merger&acquisition,there are clear audit-quality differences in accounting firms,which illustrate that after having got merger&acquisition,it exists non-significant consolidation effect in Lixin Accounting Firm.Before merger&acquisition,the differences between accounting firms did not decrease,and while after merger&acquisition,the unbalanced development of the accounting firms occurs and the audit quality did not get improved with the increasing size of accounting firms.All of these enlighten that through a series of indicators and methods to determine the consolidation effect will be conducive to find the issues immediately in the process of merger&acquisition and find ways to improve the consolidation effect.It is not only for the change of name,but the the comprehensive merger&acquisition between accounting firms,expand the scope of business,improve the office level,improve the audit quality and effectively become stronger matter.