Study On The Disclosure Of Key Audit Matters In The Audit Reports Of A-Shared Listed Pharmaceutical Companies

The audit report is an important tool for investors to understand the information of listed companies and an important medium for communicating with auditors.Audit report users expect that the audit report can contain as much useful information as possible.In December 2016,the Ministry of Finance of China issued the "Accounting Standards for Chinese Certified Public Accountants No.1504—Notification of Key Audit Matters in the Audit Report",which requires disclosure of key audit matters in the audit report,of which "A+H" listed companies The 2016 audit report was executed,and other listed entities executed since the 2017 audit report.Disclosure of key audit matters can show the matters most concerned by certified public accountants in the audit process and the audit work performed by certified public accountants,increase the information content of reports and audit transparency,and help report users make better decisions.The current theoretical research on key audit matters focuses on empirical research on the relationship between key audit matter disclosure and factors such as surplus value,audit quality,communication value,etc.There is a lack of research on the disclosure of key audit matters in practice due to the new standard The full implementation time is relatively short,and the only statistics on the disclosure of key audit matters are mostly concentrated on the statistics and discussion of the disclosure of key audit matters of "A+H" listed companies two years before the implementation of the standard,and guidance for specific industries It is not meaningful.In recent years,the country has issued a number of policies and documents such as the "Two Invoice Policy" and "Volume-Based Procurement" to reform the pharmaceutical industry.The pharmaceutical industry has become a popular industry that has attracted much attention,and the pattern is facing to be reshaped.On the one hand,the pharmaceutical industry has outstanding performance in the capital market,and its market value ranks high in various industries.On the other hand,frequent scandals such as Kang Mei Pharmaceutical's Financial Fraud and Chang Sheng Biological Problem Vaccines have also caused great concern in the pharmaceutical industry.The pharmaceutical industry belongs to the manufacturing industry category,with a long industrial chain and a diversified business model.To explore the problems in the disclosure of key audit matters in the pharmaceutical industry is applicable to the manufacturing industry and even related industries to a certain extent,which can show the current China Main issues disclosed in key audit matters in the audit report.In addition,in 2019,the China Institute of Certified Public Accountants issued a notice requiring certified public accountants to focus on the pharmaceutical industry in the audit of the 2019 annual report.The particularity of the industry business model,coupled with the recent changes in national policies,the audit work of listed companies in the pharmaceutical industry has a large number of issues that need to be focused on by certified public accountants,policies such as the "Two Invoice Policy" have a broad impact on pharmaceutical companies' revenue,product prices,sales expenses,accounts receivable,etc..As an important industry related to national economy and people's livelihood,it is also of great research significance to explore the disclosure of key audit matters and existing problems.Based on the above considerations,this paper selects the A-share pharmaceutical industry as the research object.The research issues in this article are the problems in the disclosure of key audit matters in the audit report of the A-share pharmaceutical industry listed companies.Using large sample statistics,the key audit matters disclosed by the A-share pharmaceutical industry listed companies in 2016-2018 are taken as samples.Conduct statistics to explore the disclosure of key audit matters in the audit report of listed companies in the pharmaceutical industry in terms of form,quantity,content,etc.,and provide targeted improvement suggestions for the problems.The research of the thesis found that the key audit matters disclosed in the audit report of the listed companies in the pharmaceutical industry have the problems of small number,disclosure template,and defects of the disclosure content.Problems such as inaccurate representation.There are many reasons for the above problems.CPAs can improve these problems by increasing the number of key audit matter disclosures,breaking the templated disclosure of key audit matters,strengthening the learning of standards,and improving their professional qualities.Through the discussion of the disclosure of key audit matters in the audit report of the listed companies in the pharmaceutical industry and the specific analysis of the important and special events in the disclosure of key audit matters in the pharmaceutical industry,you can deepen your understanding of the audit of the pharmaceutical industry;To a certain extent,it can play a positive role in improving the disclosure content and form of key audit matters,and has practical significance for improving the quality of audit reports,reducing the asymmetry of capital market information,and promoting the improvement of audit quality.