Study On The Economic Consequences Of The Implementation Of The New Audit Reporting Standards

With the continuous development of economy and society,the reform of audit report has become a hot topic in recent years.Audit report is the reference for investors to make investment decisions,but the current audit report has the limitations of insufficient diselosure information and low transparency reflecting audit work.As a result,the global auditing standards makers and regulators have begun to explore how to improve the audit reporting model and improve the information content,and have issued corresponding documents and guidelines.In order to improve the information content of audit reports of Listed Companies in China and maintain the continuous and comprehensive convergence between China's auditing standards and international standards,the Ministry of Finance issued 12 new auditing standards on December 23,2016,which were first implemented in A+H Company from January 1,2017,and expanded the scope of auditing objects from January 1,2018.This paper combines relevant theories,cases and empirical analysis to study the economic consequences of the implementation of the new auditing reporting standards from the perspective of accounting firms.At present,there are few literatures about the impact of the revision of the new audit reporting standards on the quality control of accounting firms,the concentration of audit market,the improvement of internal control of auditees and the strengthening of corporate governance functions.Therefore,this paper studies the economic consequences of the introduction of the new auditing reporting standards from the perspective of accounting firms through case analysis,so as to draw inspiration and suggestions.From the perspective of Lixin Accounting Firm,this paper mainly studies the changes of audit quality,audit time,audit fees and customer risk before and after the introduction of the new auditing reporting standards.At the same time,through empirical research,this paper uses the abnormal rate of return to analyze the market response,and digs out valuable information through analysis and comparison,so as to provide reference for the development of local accounting firms.This study shows that the introduction of new auditing reporting standards has increased the content of information,improved the quality of auditing,reduced litigation risks,and has a positive impact on accounting firms and certified public accountants.For the auditees,they pay more attention to internal management and corporate governance,and strengthen their own services.For users of financial reports and audit reports,more transparent audit work also makes investors make more rational decisions.