New Audit Reporting Standards,Auditor Personal Characteristics And Audit Quality

In December 2016,the ministry of finance of China issued a series of new auditing standards for China's auditing reports,and in March 2017,csa issued a guide for the application of the new auditing reporting standards,as well as answers to questions about the specific standards.The new auditing reporting standards are required to be implemented in 2017 when China's certified public accountants perform audit services for A + h-share listed companies as well as pure h-share listed companies.In 2018,it will be expanded to cover all auditees(listed companies,IPO companies,public bonds issued to the public,etc.).Most scholars at home and abroad believe that the implementation of the new auditing reporting standards--the communication of key audit matters in the auditing report can improve the information content,communication value and audit quality of the audit report,and strengthen the auditor's responsibility,but the auditing cost and litigation risk of certified public accountants will also increase.Normative analysis,empirical research and analysis,this paper examined the implementation of the new audit standard for the influence of audit quality,further studies the disclosure of the number and type of key audit matters how to influence the audit quality,and the auditor different personal characteristics after the new audit standard implementation due to the difference of behavior lead to differences in the quality of audit.In this paper,the theoretical framework of this paper is constructed and a solid theoretical foundation is built for the empirical test of the following paper by combing and summarizing the relevant domestic and foreign literatures such as the research on the new audit reporting standards,the auditor's personal characteristics and the factors affecting audit quality.Second major changes on the principles of the new audit report content,new audit criterion in the a-share listed companies in the implementation of the last two years were statistically analyzed,found that Chinese audit market is international big four high quality clients,key audit matters disclosed has certain "unity" in some sectors and have A certain industry characteristics,provide background for later empirical support.Then,based on the basic theory of this paper,information theory,behavioral science theory,and high-level echelon theory,combined with the theoretical summary after literature reading,the hypothesis of this paper is proposed.Based on the above new audit standard disclosure requirements of key audit matters,in Shanghai and shenzhen a-share companies from 2015 to 2018 as sample,empirical model,collect the relevant data,the empirical test the implementation of the new audit standard,disclose the number and type of key audit matters matters of personal characteristics affect audit quality and auditors.Since audit quality cannot be directly observed and measured,the discretionary accruals calculated by the modified Jones model are used to measure audit quality.The research finds that: first,the implementation of the new auditing reporting standards reduces the earnings management level of the company,thus improving the auditing quality.Second,the more the number of key audit items disclosed in the key audit items section of the audit report,the more obvious the improvement of audit quality.Third,listed companies that disclose income items in key audit items in audit reports have higher audit quality.Fourth,compared with female auditors,experienced auditors,non-partners and low-educated auditors,male auditors with short practice time,partner auditors and highly educated auditors improved audit quality more significantly.Further research found that the use of expert work in the audit response provided higher audit quality.This research will study in the same article more than three for the first time,to A certain extent,enriched the a-share listed companies in the audit report on the effect of the new guidelines and research on auditor personal characteristics,and the effective implementation of the new guidelines from the comprehensive supervision and audit report as soon as possible,the guidelines,strengthen training,standardize the auditor's personal behavior and put forward his own suggestion to recruit highly educated talents.It is hoped that this paper can provide some empirical evidence for policy making departments.However,there are still limitations in this paper,mainly manifested in the following three aspects :(1)some of the control variables selected inthis paper may not be appropriate,because some of them are not significant with the explained variables.The most appropriate and comprehensive control variables are not selected.(2)there are many other personal characteristics of auditors,such as age,profession,political background,etc.Due to the difficulty and time cost of data collation,these variables are not adopted in this paper,and only some factors are considered.(3)the confirmation of key audit matters adopts the methods of text analysis and manual secondary confirmation,plus there is no unified standard for the type determination of key audit matters in the theoretical and practical circles.Therefore,there may be some errors in the type confirmation of key audit items in this paper.It is hoped that future researchers and myself will attempt to replace audit quality with other variables to study the implementation effect of this policy and to use more appropriate methods or other variables to measure auditor personal characteristics.At the same time,the auditor will also disclose in the audit report what audit procedures have been adopted to deal with the key audit issues,so the research on the new audit reporting standards can continue to be in-depth,focusing on which audit procedures are best for what issues.