Study On Key Audit Matters And Their Impacts On Stock Price In The Context Of The Implementation Of New Auditing Reporting Standards

In order to keep the continuous and comprehensive convergence of China's auditing standards and international auditing standards,to meet the urgent needs of the user to change the audit report and to improve the information content of the audit reports,on the basis of the international reform achievements,the Ministry of finance of China issued the audit guidelines No.1504 th of China's CPA in December 23,2016.In order to ensure the smooth implementation of the reform,our country adopts the 12 guidelines of key audit matters.In order to ensure the smooth implementation of the reform,our country adopts the scheme of partial and step implementation,specifically A+H shares listed companies and pure H-shares listed companies from January 1 2017,first in accordance with the new audit reporting standards,from 2018 January 1 to all listed entities.The main content of the revised audit reporting standards is to add "key audit matters" in the audit report.This article is divided into two aspects in the context of the implementation of the new audit reporting standards.First,the disclosure of "key audit matters" is full and the quality is high or low in the process of the implementation of the reform.According to the statistical data of the accounting firm,this paper analyzes the disclosure of key audit matters.The conclusion is that the first year of the new audit reporting standards is carried out,and the key audit matters in the audit report are not disclosed.Secondly,from the point of view of information theory,the results of audit can improve the value of the financial information of the audited units and make the information more reliable.The trust degree of the investors on the "audited" financial statements will affect their investment behavior.In theory,the disclosure of key audit matters can enhance the investor's trust in the "audited" financial information and make it more stable in investment decision making,and further promote the volatility of the stock price.This paper is based on this hypothesis.A shares listed banks as samples,using event analysis to study the impact of disclosure of key audit matters on the volatility of stock prices.The conclusion is that audit reports reveal that key audit matters are conducive to the stability of the stock price.Based on the study of the two aspects of key audit matters,this paper holds that the new audit report reveals that the key audit matters can indeed increase the information content,enhance the transparency of the audit work to improve the quality of the audit report,reduce the information asymmetry and stabilize the capital market.Therefore,the direction of the reform of the audit report should be determined and the relevant matching should be improved.In the last part of the article,the author also analyzed the original causes of the lack of key audit matters from the audit profession,the audited units,the audit cost and the regulatory mechanism in the last part of the article,and gave the pertinent solutions to the following suggestions.The new auditing standards are fully implemented,and the reform will provide reference for the expected objectives.