Research On The Impact Of Key Audit Matters On Audit Quality

The defects of traditional audit report,such as format expression and lack of information make the gap of audit expectation further widen,In order to meet the development needs of audit industry and capital market,the quality of independent audit needs to be improved urgently.The auditing standards issued by the ministry of finance at the end of 2016 have achieved international convergence.CSA1504,the most high-profile one,disclosed key audit matters in the audit report and required certified public accountants to communicate the most important matters for the current audit in the audit report.How this significant change will affect the audit quality of listed companies and the path of the impact become the focus of this paper.First of all,this paper carefully sorted out the relevant research results at home and abroad,explained the theoretical basis,and put forward the impact mechanism of key audit item disclosure on audit quality through theoretical analysis.Secondly,statistical analysis was conducted on the disclosure of key audit matters after the implementation of the new standards,and a multiple regression model was built to study the impact of key audit matters on audit quality with the samples of a-share listed companies from 2011 to 2018.In addition,the case of H&R Century Union Corporation is analyzed to support and enrich the conclusions of empirical research.Based on the above research,this paper comes to the following conclusions:(1)There is a significant positive correlation between the disclosure of key audit items and audit fees.(2)The disclosure of key audit items is significantly positively correlated with the audit time.(3)The disclosure of key audit items is positively correlated with the audit quality of listed companies.(4)Audit time plays a part of intermediary role in the relationship between key audit items disclosure and audit quality.Finally,based on the problems found in the study,Suggestions are put forward to provide reference for auditors and firms to improve their competitiveness and audit service quality,and improve the implementation effect of the new audit standards.