| In order to meet the individual needs of investors,to further reduce the information asymmetry between management and investors,and to promote the benign development of China's capital market,the Ministry of Finance has made major revisions to China's original auditing standards after major updates to the international auditing reporting standards.In order to smoothly implement the audit report standard reform,the Ministry of Finance adopted a slow implementation attitude.First,the new standard was applied to the audit business of A + H listed companies on January 1,2017,and then in January 2018 On the 1st,it was applied to other listed companies on the Shanghai and Shenzhen stock exchanges.The core content of this reform is to require certified public accountants to add a "key audit matter section" in the audit report.In addition,in terms of continuous operations,the new standard proposes that the "related to the audited unit's continuous operating capacity The "Major Uncertainty" section also adds other matters worthy of investors' attention.So far,all listed companies have adopted the new audit reporting standards.Therefore,both the theoretical and practical circles are very concerned about whether the addition of key audit matters,the addition of continuing business matters,and the disclosure of other matters brought about by the implementation of the new audit reporting standards have achieved the expected effect of improving audit quality.Based on the above analysis,This article uses theoretical research and empirical analysis to study the impact of the update of audit report standards on the audit quality of China's listed companies.This article takes the data of all A-share listed companies from 2015 to 2018 as the research object and empirically examines the impact of audit quality before and after the implementation of the new audit reporting standards.In order to make the study of audit quality more convincing,this paper uses the modified Jones model and the logarithm of audit pricing,which are more commonly used in academia,as indicators for measuring audit quality.The research results of this paper show that:(1)After the implementation of the new audit reporting standards,due to the increase of the available information content and the legal responsibilities faced by certified public accountants,the audit quality has been significantly improved.(2)The more critical audit items are disclosed,the better audit quality will be.(3)For larger accounting firms,the implementation of the new auditing standards has a significantly higher effect on improving audit quality than smaller accounting firms.The research in this article is innovative.First of all,there have been a smallnumber of impact studies on the implementation of the new standard in China,but most of them are normative studies,and because the new standard will be implemented soon,there will inevitably be a lack of data.The research results of this paper use the latest data,use the two indicators of manipulable accrued profit and audit pricing as alternative variables to measure audit quality,and further examine the degree of difference in the impact of audit standard implementation on firms of different sizes from the perspective of firm size.Thereby further enriching the relevant empirical research.Moreover,since the new audit reporting standard is still a new thing,its reliability and effectiveness still need to be polished and revised in practice.The research in this article helps us to further evaluate the actual implementation of the new auditing standards and has practical implications for all related parties in China's capital market,including regulatory agencies,investors,and firms.At the same time,the policy recommendations put forward at the end of this article also have certain reference significance for the regulatory authorities to further supplement and revise the new auditing standards and the firm's implementation of the new auditing standards. |
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