| The audit report is issued by the certified public accountant of the accounting firm with audit qualification.Its function is to reflect the information quality of the enterprise financial report through different audit opinions,so as to protect the interests of the users of the financial statements.Although the standardized audit report has the advantages of standard format and clear view,it also has some defects,such as small content differences.Users of financial statements generally believe that standardized audit reports are too"symbolic" and contain too little information.In the context of economic globalization and increasing complexity of financial reporting,standardized audit reports have been unable to meet the needs of users of financial statements for useful information in business decisions(IAASB,2011).China's new audit report reform was first implemented in the audit report of A+H-share companies in 2017,and has been fully implemented since January 1,2018.The core measure of this audit report reform is to introduce key audit matters.Therefore,through case study,this paper aims to reflect the economic consequences of the implementation of key audit matters for accounting firms,certified public accountants and auditees more specifically and profoundly,and analyze useful information to help the reform of audit reports in China.In this paper,the domestic and foreign scholars on the key audit issues related literature,external audit economic consequences related literature were collated and summarized.At present,most scholars believe that the disclosure of key audit matters can improve the information content of audit reports,so as to effectively alleviate the information asymmetry in the capital market,but there are still negative effects.These documents are mainly based on empirical research,which has a certain macro nature,leading to the lack of in-depth and detailed analysis.Therefore,this paper takes the 2016-2018 audit report of transportation enterprises as the data source to explore the changes of audit standards and the relevant theories of key audit matters.According to the changes of accounting firms,audit opinions and remuneration of accounting firms in the 2016-2018 annual report of the transportation industry,as well as the disclosure form,quantity and type of key audit matters and other statistical data,this paper analyzes in-depth the implementation of key audit matters under the new audit report standard with the method of case study and the audit quality and audit of accounting firms and certified public accountants In terms of cost and business undertaking,the economic consequences of the audited unit in terms of internal control and business decision-making.The research shows that the disclosure of key audit matters can provide more useful audit information to the public,and help them better understand the areas where the auditee has the risk of material misstatement.Therefore,the implementation of key audit matters has a good impact on China's accounting firms,certified public accountants and audited units.The implementation of key audit matters makes Chinese certified public accountants improve their professional competence,maintain independence and prudence in the course of their practice,so as to improve the quality of audit;furthermore,in order to improve their own competitiveness and undertake more audit business,accounting firms and certified public accountants strive to create a composite audit talents,but due to the factors that affect audit costs Too many factors,only from the case study can not accurately reflect the relationship between the two.In addition,due to the short implementation time of key audit matters,the impact on internal control can not be reflected,but the implementation of key audit matters is conducive to the management to timely discover the risks and deficiencies in daily business activities,reduce the possibility of decision-making errors,and contribute to the sustainable development of the audited unit. |
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