The Factors Of Key Audit Matter In Audit Report

In 2008,the impact of the financial crisis spread to the world economy,and countries around the world were affected to varying degrees.This has also aroused the reflection of accounting information users and other relevant personnel all over the world on how to better control and predict risks in advance.In this process of reflection,more and more people of insight began to reflect on whether audit work played a positive early warning role in this process.Therefore,the appeal for improving the information content of audit reports and the transparency of audit work is getting higher and higher.People from all walks of life have become a consensus in the field of audit to further improve the information content and timeliness of audit reports.Therefore,major auditing standards-setting organizations,such as the International Auditing and Assurance Standards Board(IAASB),the Public Company Accounting Oversight Board(PCAOB)and the Ministry of Finance of the People's Republic of China,have put forward requirements for disclosure of key auditing matters.The so-called key audit matters refer to the matters that CPAs consider most important in auditing the current financial statements according to their professional judgment.Among them,it is emphasized that the key audit items should be based on the most important items in the communication between CPA and management.Disclosure of key audit items has many effects.Audited companies,accounting information users and accounting firms are all affected by the new standards.Among them,the most direct impact is the litigation risk faced by the accounting firms: the correlation between the key audit items disclosed in the audit report and the litigation matters of the company affects the litigation risk faced by the certified public accountants.This forces CPAs to play an early warning role as far as possible in the process of disclosing key audit matters,so as to reduce the risk of litigation they may face.It is precisely because of the CPA's concern about the audit risk and the litigation risk faced by CPA,CPA will warn the key audit matters disclosed in the audit report as far as possible,which forces the audited company to give corresponding explanations and explanations,and to be disclosed by CPA in the audit report.This will be conducive to a more comprehensive disclosure of audit reports in the audit process CPA important details of work.A better understanding of these information is of great significance for accounting information users to mak e more reasonable decisions based on accounting information and auditing information.In order to help the relevant information users better understand the key audit items disclosed,this paper,based on the theory of audit service production system,combined with the actual situation of China's capital market,analyses the factors influencing the quantity and content of key audit items disclosed.The relationship between the influencing factors,the quantity of disclosure and the content of disclosure is further validated through empirical analysis.Through the demonstration of this paper,it fully proves that there is a significant correlation between the key audit disclosure and the industry in which the enterprise is located and the business performance of the enterprise.Among them,the industry in which the enterprise is located has an impact on the content of key audit disclosure,and different industries have different impacts on different types of disclosure;the business performance of the enterprise has an impact on the number of key audit disclosure,the higher the asset-liability ratio of the enterprise,the more the number of key audit disclosure;the business performance of the enterprise has a shadow on the content of key audit disclosure.Moreover,different business performance indicators have different impacts on the content of key audit disclosure.Therefore,in the study of key audit items,we can not ignore the industry characteristics and business performance of enterprises.Investors should pay attention to the number of disclosure of key audit items,which may mean that enterprises have higher financial risks.At the same time,investors need to analyze the abnormal phenomena between disclosure content of key audit items and financial indicators.These abnormal phenomena may indicate the existence of profit adjustment and other phenomena.