Key Audit Matter Disclosure Issues And Countermeasures

Along with 2008 financial crisis broke out,auditing scholars and practitioners in most countries realize traditional audit report is a sequential structure,in addition to the audit opinions,it is basically a one-size-fits-all,lack of information content,and the correlation is declining.It cannot be used as a window to show the independent audit work of auditors,forming a certain audit expectation gap.Therefore,in order to resolve the audit expectation gap,IAASB released new revised auditing standards in 2015.Simultaneously,Ministry of Finance,for the international convergence of domestic auditing standards,released new auditing standards at the end of 2016,which is the most critical is to communicate key audit matters in the audit report,For A+H companies,on January 1,2017,other listed entities should implement the approval on January 1,2018.This article starts from the key audit matter guidelines and application guidelines,combining the theoretical basis of risk-oriented auditing.this paper not only explain the theory of key audit matters from four aspects: definition,purpose,confirmation and description to enriched the theoretical research results of the new audit reporting standards,but provide timely reference materials for listed companies in future audit work in order to further standardize the implementation of the new audit reporting standardsAfter this paper discusses the reform process of audit reporting standards and the content of key auditing matters,This paper will select A-share and H-share real estate companies as research objects.statistics on key audit issues involving 62 A-share listed real estate companies and 38 H-share listed real estate companies in 2017 and use the perspective of comparative analysis to find thatwhen the key audit matters are disclosed,there are still many irregularities in the process of confirming the matter and the way of describing the matter in the audit report of the A-share real estate enterprise,For example,the validation process for key audit matters lacks a standard that quantifies the “most important” level.In response to these problems,this paper further analyzes the causes of the problems and proposes corresponding countermeasures and suggestions,For example,the accounting firm's quantitative confirmation of the reasons and normative description process,the requirements of the AICPA detailed guide and strengthen the annual report audit supervision and inspection,auditors continue to learn to improve professional quality In order to solve the outstanding problems in the implementation status,further improve the communication value of the audit report and better reflect the audit quality of the CPA.The research results of this paper may have certain reference value in the future research of the same type.