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Research On Disclosure And Information Content Of Key Audit Items

Posted on:2021-01-21Degree:MasterType:Thesis
Country:ChinaCandidate:S J GuFull Text:PDF
GTID:2439330605960356Subject:Accounting
Abstract/Summary:PDF Full Text Request
In order to improve the information content of the audit report and meet the requirements of people from all walks of life for improving the reference value of the audit report,the international auditing and certification standards board(IAASB)issued a new series of audit report standards in 2015.The core point is to add key audit items in the audit report.Following the pace of the reform of international audit reports,China issued the auditing standards of certified public accountants no.1504--communicating key audit items in audit reports in December 2016.A+ H-share listed companies are required to implement it from January 1,2017,and other listed companies from 2018.Whether the disclosure of key audit items can provide incremental information for information users and the quality of the disclosure is worth studying.Based on 6,837 research samples of listed companies in 13 industries from 2017 to 2018,the thesis conducts statistical analysis from the disclosure quantity of key audit items,the proportion of different types of items and the disclosure status of key audit items of different firms.The findings show that the disclosure of key audit items has different annual repetition tendency.Asset impairment and income are the hot topics of disclosure;Personalised disclosure has increased but not dramatically.In addition,starting from information asymmetry theory,modern risk-oriented audit theory and efficient market theory,the thesis empirically tested the information content of key audit items by using event research method.A total of 3,018 research samples from 12 industries in 2018 were selected to test the information content of key audit items by empirical methods such as descriptive statistics,correlation analysis and multiple regression analysis,and robustness test was conducted by changing different time Windows.The empirical results show that: 1)the disclosure of key audit items has information content,which brings a positive response to the market;2)the capital market has different reactions to different types of key audit items,and asset impairment,income and asset items have stronger reactions to the market;3)the market is more responsive to audit reports by large firms on key auditor items.Based on the research conclusion,the thesis suggests that the regulatory authorities should strengthen the supervision to ensure the information is true and accurate.It is suggested that certified public accountants should pay attention to the characteristics of the industry and the uniqueness of different companies when disclosing key audit items,so as to enhance professional quality and enhance professional competence.At the same time,it is suggested that information users enhance their awareness of learning professional knowledge actively and improve their ability to obtain information.
Keywords/Search Tags:Key audit items, Information content, Event study, Market reaction
PDF Full Text Request
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