The Audit Report Communicated The Key Audit Issues And Suggestions For Improvement

On December 23,2016,the Ministry of Finance issued 12 auditing standards for Chinese certified public accountants(hereinafter referred to as "the new auditing standards")such as "Communicating Key Issues in the Audit Report".The core of these is the new "Chinese Certified Public Accountant Auditing Standard No.1504-Communicating Key Issues in the Audit Report "(hereinafter referred to as the " No.1504 "),the new standard clearly requires that audit reports issued by listed companies need to increase the auditing key issues to disclose the audit work In the key,difficult and other information,and asked the certified public accountant to explain the reasons for the matter ascribed to the key audit matters and auditors for the audit of the matter.As a new change in the communication of key audit matters in the audit report,it not only increases the transparency of the audit work,enhances the communication value of the audit report,reduces the risks caused by the uncertainty of the capital market and information asymmetry,On the one hand,the disclosure of key audit matters relates to accounting firms,audited entities and the public,involving a relatively wide range of current domestic CPA lack of corresponding experience,the key audit matters from the professional judgment of certified public accountants to the management,The communication between the management layer,and finally to the audit report is not yet familiar with the whole process.In addition,with the promulgation and implementation of the new standard itself,in the process of disclosure of key audit matters,such as misunderstood understanding of the existence of audit services by the principal,inadequate disclosure of key audit matters,and formalization of terms in audit reports Highlight.In view of the above situation,this article first introduces the background and significance of the study,the current research situation at home and abroad and the related theoretical basis,laying a solid foundation for the writing of the article.Then using the case analysis method,this article selects a number of domestic accounting firms from the international survey,including both the 94 listed companies in the domestic audit report has been disclosed in the summary,analysis of key audit matters in the main distribution areas,The current implementation status,but also focused on a listed company.Through the case analysis of the disclosure of key audit matters in the audit report of Chenming Paper by Ruihua,the problems existing in the implementation of the new standard and thecorresponding strategies were put forward.I hope the article corresponding research results,the CPA practice in our country have some inspiration and help to the implementation of our new audit reporting system to provide support.