Comparative Study On Key Audit Matter Disclosure Of Chinese And British Manufacturing Enterprises

Since the economic crisis in 2008,the improvement of audit report quality has become the main point of many scholars.In 2013,FRC launched the reform of audit report,and IAASB issued a series of new audit report standards in January 2015 to improve the amount of information in audit report,which reformed the structure and content of audit report.In order to keep pace with the development of international reporting standards,China issued auditing standards such as “auditing standards for certified public accountants No.1504-communicating key audit matters in audit reports” on December 23,2016,requiring the disclosure of key audit matters in audit reports,and since January 1,2018,the new auditing standards have been fully promoted.Because of the large number and scale of manufacturing companies,it plays an important role in promoting the economic development of our country,so the effectiveness of information disclosure of manufacturing industry is very important.Compared with China,the disclosure of key audit matters in the UK is earlier,which not only has sufficient experience and standard disclosure format,but also plays a guiding role in the reform of the audit report of the whole audit industry,making the UK a model for the international audit industry in terms of the disclosure of key audit matters.Based on the above background,this paper focuses on the comparison of the disclosure of key audit matters between Chinese and British manufacturing enterprises.By comparing the differences between China and the UK,we can learn from the UK’s disclosure experience to improve the level and quality of disclosure of key audit matters in China.Research status: the existing research tends to focus on the comprehensive summary and empirical analysis of the disclosure of key audit matters in China,and most of the industries involved are financial industry and construction industry.The specific comparison of manufacturing cases between China and the UK is rarely involved.Research ideas and research methods: first of all,using the literature research method,based on the existing research,this paper analyzes the overall situation of key audit disclosure in recent two years from a macro perspective.Secondly,using the case analysis method,the paper selects two enterprises with universality and representativeness-Rolls Royce and AECC as the micro perspective,and based on the risk-oriented theory,makes a comparative analysis from three dimensions of disclosure form,content and quality,and points out the shortcomings.Finally,the causes of the problems are analyzed,and the corresponding countermeasures and suggestions are put forward.Through the analysis of this paper,we hope to provide reference for the disclosure of key audit matters in other industries.The purpose of this paper is to find out the differences and deficiencies in the disclosure of key audit matters through the comparison between Chinese and British enterprises,and to summarize the improvement suggestions and Countermeasures with practical significance.The research value of this paper is to supplement the blank of the existing literature in the comparative cases of key audit matters between China and the UK.The analysis of the disclosure of key audit matters is not only helpful to improve the quality and effective information content of audit reports,to transmit more effective information to information users,but also to promote the stable and orderly development of the audit industry.In addition,the case study of this paper pays attention to the commonness of the industry and the characteristics of different industries in specific circumstances,so the suggestions and measures proposed can also provide reference materials for the audit work of Listed Companies in the future,especially for companies in the same or similar industries.