A Study Of The Influence Of The Merger Of Ruihua Certified Public Accountants On Audit Quality

Since 2007,the State Council,the Ministry of Finance and CICPA have promulgated various systems to promote accounting firms' "becoming bigger and stronger",leading to the merged event of a large number of accounting firms.However,as important social and economic subjects of supervision,accounting firms have the most important social function of presenting fair and unbiased high-quality audit information to stakeholders and the public.Therefore,whether the audit quality of Chinese accounting firms after the merger has reached the psychological expectation before the merger,as well as the problems reflected by the merger is worthy of consideration.In this paper,the merger case of Ruihua Certified Public Accountants(CPA)was taken as the analysis object to study the influence of auditing firm mergers on audit quality.Ruihua was jointly set up by RSM China Certified Public Accountants and GHP Horwath in May 2013,and it is the current "top one firm of domestic capital".But it is worth noting that,the problems of Ruihua continuously emerged after the merger,and the audit quality problems of its two projects of KeyBridge and Artie Industrial all appeared before and after the merger.Based on a systematic review of related studies on the influence of auditing firm mergers on audit quality,using Synergy Effect Theory,Control Theory,Quasi Rents Theory and Cost-Benefit Theory,from four dimensions of the audit opinion types,CPA signature concentration,number of customers and auditing fees,this paper analyzed the influence of the merger on the audit quality of Ruihua CPA.According to the above analysis,it was found that the audit quality of Ruihua CPA seriously declined after the merger,and the main reasons include the increased difficulty of holistic management,the ineffective control of internal quality,the problems of auditing fees and the ill management of customer resources.In view of these problems,improvement countermeasures were put forward as follows:the integrated management system should be perfected,the quality control system should be improved,the audit fee system should be standardized,and the customer resource management should be optimized.All these countermeasures have some referential significance for Ruihua CPA in improving its audit quality and realizing "From Large to Strength".