Research On The Impact Of Disclosure Of Key Audit Matters On Capital Market Efficiency

With the continuous development of the economy and the increasingly perfect capital market,the CPA audit has become an essential part of the capital market.The audit report,as a written document issued by the certified public accountant on the legality and fairness of the financial statements,plays an important role in improving the reliability of financial information.Although the traditional audit report model is standardized,concise and clear,and easy to understand,it has been questioned because it cannot meet the public's decision-making useful information,use value and personalized needs.In recent years,various countries have implemented audit report reforms.The core is to add key audit items to the audit report,aiming to increase the information content.In order to maintain the continuous and comprehensive convergence of China's auditing standards and international standards,the Ministry of Finance of China issued 12 new auditing standards in December 2016,adding ?China Certified Public Accountants Auditing Standard No.1504-Communicating key audit matters in audit reports?Guidelines.In view of this,this article combines China's national conditions,relevant institutional background and the particularity of the audit market,first reviewed relevant domestic and foreign literature,and then introduced the relevant theories and concepts,combing from the three aspects of investor decision-making,company report information quality,audit quality Disclosure of the relationship between key audit matters and capital market efficiency.On this basis,theoretically analyze the relationship between the disclosure of key audit matters and investor decision-making,the quality of company report information and audit quality,put forward research hypotheses,construct an appropriate model,and select China's 2016-2018 Shanghai and Shenzhen Main Board A-share listing The company's financial data is used as a research sample to empirically study the impact of the disclosure of key audit matters on the efficiency of the capital market,with a view to providing some policy recommendations for domestic government regulation and stakeholders such as investors and report users.The research results show that:(1)The disclosure of key audit matters can improve the decision of investors,the quality of the company's statement information and the audit quality.(2)The more the key audit matters disclosed,the better the investor's decision-making,the quality of the company's statement information and the audit quality.(3)Different types of accounting firms that disclose key auditing matters make different decisions to investors,and the company has different degrees of influence on the quality of billing information and audit quality.Among them,the key audit matters disclosed by the top four accounting firms have improved the decision-making of investors more than non-top four accounting firms.The key audit matters disclosed by non-Big 4 accounting firms have an impact on the quality of the company's billing information and audit quality.Better than the top four.Overall,the disclosure of key audit matters has a positive impact on improving capital market efficiency.