Study On The Influence Of Key Audit Matters On Corporate Investment Efficiency

In response to the shortcomings of insufficient information in the current audit report,the International Auditing and Assurance Standards Board officially released the revised series of audit report guidelines in 2015.In order to maintain the continuous convergence of Chinese auditing standards and international auditing standards,the Ministry of Finance issued 12 auditing standards in December 2016.The most important part of the reform of audit report is to require auditors to disclose key audit issues in the audit report.The main research subject of this dissertation is that whether the disclosure of key audit matters have an important impact on corporate investment efficiency in China’s market environment?Existing scholars have carried out relevant study on key audit disclosure matters mainly in the following three aspects.Firstly,the existing researches have combined and interpreted the background and content of the release of "ISA701-Communication Key Audit Matters in Independent Auditor’s Report".Secondly,there was a statistical analysis of the contents of the key audit items disclosed for the first time in the audit report of the listed company.It was found that the characteristics of the industry determined the type of disclosure of key audit matters.Thirdly,scholars have used use the case analysis method to analyze the key issues of KPMG’s audit report on Rolls-Royce Engine Group,and have proposed the use of graphical forms and other auxiliary methods to describe the importance of key audit projects.Different from previous research,this paper uses the financial data and basic information of all listed companies in 2016-2017 for empirical research.Comparing the disclosure of key audit issued by listed companies in 2016-2017,I will use of multiple regression to test whether the disclosure of key audit issues improves investment efficiency.Research ideas:the disclosure of key audit matters is a significantly positivel correlation with investment efficiency.Specifically,more effective information is delivered to financial reporting users by disclosing key auditing matters,as well as specifying the reasons for disclosure and auditing responses.As a result,disclosure of key audit issues can alleviate information asymmetry,increase the effectiveness of financial reporting to investors and other financial reporting users,help investors assess corporate value and help stakeholders monitor internal corporate behavior,thereby increasing corporate investment effectiveness.Innovation of research:enriching the research contents of the key audit matters disclosure of listed companies’ financial reports,the impact of the corporate investment efficiency and the mechanism of the audit market;and expanding the research conclusions,which lead to the decline of information asymmetry in the disclosure of key audit issues among UK listed companies,to the entire Chinese market.Application value of research:Firstly,it has verified whether the disclosure of key auditing matters has an impact on the company’s investment decisions,and whether the communication of key auditing matters has reached the goal of the standard setting.In addition,It helps to deepen the CPA’s understanding of auditing standards,and is conducive to the verification and supervision of audit by the regulatory authorities.