The Research On The Influence Of Key Audit Matters On Audit Fees

In order to further enhance the information content of the audit report,the biggest change in the new audit report standards issued in 2016 is the increase in disclosure of key audit matters in the audit report.The article takes this as an opportunity to clarify the key processes of key audit matters and the core points of expression on the basis of clarifying the essential content of key audit matters,and systematically analyzes the disclosure of key audit matters to audited entities,accounting firms and reports.Systemic influence of stakeholders,and selected A-share main board listed companies that implemented the new auditing standards in 2017 and 2018 as samples,from the aspects of matter type,quantity distribution,industry distribution,firm distribution,and event information content characteristics,etc.,Comprehensive analysis of the implementation status of key audit matters disclosed in the audit report of A-share main board listed companies.The promulgation and implementation of the new audit reporting standards in 2016 requires communication of key audit matters,which may increase audit fees and audit risks,and have a corresponding impact on audit fees.In order to deeply explore the relationship between key audit matters and audit fees,the article systematically analyzes the function path and operating mechanism of key audit matters affecting audit fees,and selects A + H share listed companies and matching samples that first implemented the new audit reporting standards in 2016.On the basis of verifying that the disclosure of key audit matters does have a positive impact on audit fees,taking A-share main board listed companies in 2017 and 2018 as the research object,the key characteristics of communication,the types of risks,the types of information,the characteristics of information volume,The four dimensions of the number of audit procedures are empirically tested for their systematic impact on audit fees.The empirical research results show that:(1)the disclosure of key audit matters will increase the audit fees;(2)the more the number of key audit matters disclosed,the higher the audit fees;(3)the greater the risk characteristic index of the key audit matters disclosed,the higher the audit fees is;(4)the more the amount of information contained in the key audit matters disclosed,the higher the audit fees;(5)the larger the number of audit procedures performed by the key audit matters disclosed,the higher the audit fees.Based on the results of theoretical analysis and empirical research,this article proposespolicy recommendations from three aspects: improving the information disclosure mechanism,improving professional competence,and strengthening the financial knowledge education of information users,enriching existing research on the economic consequences of key audit matters.Auditing pricing by accounting firms provides an important basis for decision-making.