Research On The Integration Of Merge Of Accounting Firms

Since the re-establishment of the CPA system in China in 1980,the CPA industry has experienced rapid development over the past 20 years.With the continuous improvement of China's national strength,the number of A-share listed companies has exceeded 3,500 by the end of 2018,attracting overseas investment and Chinese companies to go abroad,raising the demand for CPAs.However,compared with the international four major accounting firms,local firms still have huge gaps in scale and audit quality.In order to promote the domestic accounting firm's enlargement and strength,under the joint promotion and leadership of the Institute of Certified Public Accountants and the Ministry of Finance,China's CPA industry has formed a number of mergers and acquisitions,aiming to improve audit quality,expand the scale of operations,and promote excellent Resources are more concentrated,so that they have the auditing capabilities of auditing large groups,going abroad,and providing diversified services.After the wave of mergers and acquisitions,domestic firms have indeed grown larger through mergers and expansions.However,from the perspective of audit practice,it is not uncommon to see cases of penalties for post-merger audit failures.What is the impact of it? Has the ability to undertake business improve? Has the quality improved?This article will select the case of the merger of Ruihua Certified Public Accountants as the research object.Ruihua Certified Public Accountants Co.,Ltd.is the first domestic accounting firm to be ranked among the top four in the country and even surpass the international four.However,in early 2017,Ruihua was suspended from accepting new securities business due to two administrative penalties,resulting in a loss of a large number of customers,and its performance plummeted.This paper will analyze the consequences of Ruihua's merger in 2013 and the risks existing before the merger,and make effective suggestions for the merger,so that the future development of local firms can use it as a guide,and become better.