Research On The Impact And Countermeasures Of Communicating Key Audit Matters In Chenming Paper's Audit Report

The audit report is the final result and value of the audit work.It not only serves as the main channels for CPA to communicate with the users of the financial statements but also plays an important role in improving the relevance and usefulness of financial information.On the one hand,traditional audit reports have the advantages of concise content,format standards and clear opinions.On the other hand,with the development of the global economy,the increasingly complicated business of the company and the ever-increasing investment risk,there are many shortcomings in the audit report gradually marked.Especially after the financial crisis in 2008,the traditional audit reports have gradually failed to meet the needs of users.The needs of users determine the supply of audit reports.In 2015 the International Auditing and Assurance Standards Board(IAASB)formally released the newly revised auditing standard "ISA701-Communicating Key Audit Matters in Independent Auditing Report"(ISA701).Against the background,substantial convergence with the international auditing standards is imperative.At the end of 2016,the ministry released,including the "China Certified Public Accountant Auditing Standards No.1504-Communicating Key Audit Matters in the Audit Report" and 12 auditing standards.The new auditing standards beginning to take effect in January 1,2017.The information content of key audit matters is the core part of the audit report reform,which is a substantial part of the audit report information quality.It not only increases the information content of the audit report,but also improves the transparency of audit.At the same time,it has a great influence on the quality of audit report information.Therefore,it is necessary to conduct a systematic study on key audit matters.This paper first comparatively analyzes the defects of the traditional audit report,and then gives a detailed analysis on the content of audit standards,so as to reveal the inevitability of the new audit standards.After a detailed introduction of the theoretical basis of key audit matters,this paper systematically studies the present situation of communicating key audit matters in the audit report of domestic listed companies in 2016,taking Chenming Paper Co.,Ltd.as an example.On this basis,this paper directly reflects the impact of the new auditing standard and the difficulties that may be encountered.At the end of the paper,some suggestions are put forward to all relevant participants on how to deal with auditing standards.