Study On The Influencing Factors And Market Reaction Of Disclosure Of Key Audit Matters

In order to enhance the transparency and decision usefulness of audit report for users,the better the implementation of the communication value of audit report,in2015 the new audit guidelines released by the international auditing and verification standards board,other international organizations are also conducted a series of reform of the audit report,one of the most important is the increased Key Audit Matters in the audit report.In order to achieve international convergence in China,the new audit standards issued by the ministry of finance requires the addition of Key Audit Matters in the audit report.The so-called Key Audit Matters refer to the items that certified public accountants consider most important for auditing the financial statements of the current period according to their professional judgment.Professional judgment is mainly used in judgment and decision making,indicating that the disclosure of Key Audit Matters will be affected by the characteristics of audit subjects.Therefore,from the perspective of certified public accountants,it is worth studying to discuss the influencing factors of the disclosure of Key Audit Matters and whether the disclosure of Key Audit Matters can provide useful decision-making information for report users.In this paper,first select A + H shares listed companies from 2016 to 2017 as the research object,from two aspects: certified public accountants,certified public accountants research carried out on the key influence factors of audit matters to disclose,to the Key Audit Matters disclosed the number to be explained variable,industry expertise,sign signature local CPA practice experience,local CPA gender as explanatory variables,the study of the characteristics of two levels with key audit matters whether the disclosure of related.Second,to expand the research object of listed A shares,inspection of key audit matters whether disclosure will cause market reaction,as interpreted variable measured by the cumulative excess return rate,and whether to disclose Key Audit Matters as explanatory variables,and to discuss the following issues: key audit matters to disclose whether can cause positive market reaction;Whether the individualized key audit items will cause more significant market reaction compared with the general disclosure items.The above analysis mainly uses the event research method and the multivariate linear regression analysis method.Through empirical test,the following conclusions are drawn: industryexpertise,CPA practice experience and gender characteristics are significantly related to the number of Key Audit Matters disclosed;The disclosure of key audit items can arouse positive market reaction;Personalized key items cause more significant market reaction than general items.The contribution of this study,first to test the factors that influence the key decision-making points of making reasonable disclosure decisions of Key Audit Matters,and to effectively test whether the disclosure of Key Audit Matters can effectively deal with the disadvantages of traditional audit reports,so as to increase the information content of audit reports.In addition,this paper also puts forward specific implementation Suggestions for the disclosure of Key Audit Matters,hoping to improve the disclosure of Key Audit Matters.