Research On The Impact Of Key Audit Matters On Audit Quality

In recent years,the United Kingdom and the United States have successively carried out audit report changes,and through the increase of audit report information disclosure to solve the shortcomings of the old audit report format.In order to achieve international convergence,the Chinese Institute of Certified Public Accountants issued a draft for the review of audit report reform in 2016,soliciting the opinions of auditors from all walks of life to fully demonstrate the reform of China's audit report.The new auditing standards were approved and released in December of the same year.Of particular concern is No.1504 of the New Auditing Standards-disclosure of key audit issues in audit reports.According to the regulations,the 1504 standard has been partially implemented since January 1,2017,and it is mandatory to fully implement it in 2018.Experts and scholars agree that reports with key auditing matters enable financial reporting users to learn more about the details of the company's business management.The CPA emphasizes the value of the audit work by describing the reasons and countermeasures for specific matters.Increased the information content of the audit report.However,as of now,the relevant research mainly focuses on the theoretical discussion on the significance of disclosing key auditing matters,but lacks the test of the role and function characteristics of key auditing matters through empirical means.This article uses the new auditing standards in the first year(2018)after the introduction of the new audit reporting standards-No.1504,the data of the main board listed companies after the communication of key audit matters in the audit report(disclosed 2017 audit report),To test the effectiveness of the policy of comprehensive disclosure of key audit issues,and to empirically examine the impact of key audit issues on audit quality from the perspective of earnings management,and to disclose the number of key audit matters,disclose the nature of key audit issues,and issue key audit issues.The three aspects of the firm explore the impact of key audit issues on audit quality.The results of the study indicate that disclosure of key audit issues can have a positive impact on audit quality.The more key audit items disclosed,the higher the audit quality;the impact of key audit matters of different nature on audit quality is different.The disclosure of revenue as a key audit item is higher than the quality of audit when not disclosed;accounting firms of different sizes Disclosure of the impact of key auditing matters on audit quality is different,and the audit quality of small-scale accounting firms is significantly higher than that of large-scale accounting firms.Finally,it puts forward suggestions on the implementation of the new standards found in this study,provides reference for the financial statement users to better understand the new audit report,and provides possible improvement suggestions for the subsequent reform of key audit matters.