Research On The Impact Of Disclosure Of Key Audit Matters On The Communication Value Of Audit Reports Based On The Analysis Of Ruihua Certified Public Accountants

The audit report is the bridge of information communication between auditors and report users,and the main carrier of audit information transmission.However,with the improvement of market effectiveness,investors' requirements for the quality of information contained in audit reports have increased significantly,and traditional audit reports with a single format and standardized content have been criticized.The International Auditing and Assurance Standards Board(IAASB)issued a new series of audit report standards in 2015,and the Ministry of Finance of China issued "Chinese Auditing Standards for Certified Public Accountants No.1504-Adding Key Audit Matters to Audit Reports" in December 2016,Both parties requested that the key audit matters should be added to the audit report,and key audit matters and corresponding audit procedures should be disclosed.Therefore,this article uses policy reform as an opportunity to study the impact of key audit matters disclosure on the communication value of audit reports.After sorting out the research ideas of the article and clarifying the writing framework,this article conducts an in-depth discussion on the research background and research significance.In the background and theoretical introduction of key audit matters disclosure,the meaning of key audit matters is defined and related documents are collected.At the same time,the principal-agent theory,information asymmetry theory,signal transmission theory and efficient market hypothesis are used at different levels to analyze the mechanism of the impact of key audit matters disclosure on the value of audit report communication,laying the foundation for subsequent research.In addition,it also summarized the disclosure of key audit matters of Ruihua Certified Public Accountants,manually sorted out the content and form information disclosed in its audit report,and conducted dynamic comparative analysis.Then summarize the above research content,carry out an empirical study with Ruihua Certified Public Accountants as a sample from 2016 to 2018,use the cumulative abnormal return(CAR)as a variable to measure the communication value of the audit report,and divide the overall sample Annual regression study,and further carried out sub-sample regression test.The study found that in terms of disclosure content,key audit matters of “income”,“impairment”,and “preparation” were disclosed more frequently;in terms of text expression,“definition of matter”,“word count of text” and “audit There are certain rules to follow in the number of countermeasures and the format.The disclosure of key audit matters in the first year significantly improved the communication value of the audit report,but the continuous disclosure of key audit matters in the second year did not continue to significantly improve its communication value.According to the research results,this article provides policy recommendations and enlightenments from four levels of supervision,audit industry,accounting firms,and certified public accountants,which will help to further improve policy formulation and industry selfdiscipline system construction,enhance the effectiveness of audit supervision,and contribute to the health of the capital market.Advice on development.