Case Study On H Firm’s Communicating Key Audit Matters Of Company A In The Audit Report

The audit report is the embodiment of the audit results and the audit value.With the change of the global economic environment,the company’s business is becoming more and more complex,and the difficulty of decision-making for investors is increasing.However,the audit report is highly standardized and contains less information,therefore can not meet the needs of information users.The voice of audit report reform was getting louder and louder.The financial crisis that broke out in 2008 directly caused countries to reform audit report one after another.On the one hand,in order to provide more information and make audit report users aware of the audit work,on the other hand,in order to converge with international Audit standards,in the year of 2016,China’s Ministry of Finance issued the “Chinese Certified Public Accountants Auditing Standards NO.1504-Communicating Key Audit Matters in the Audit Report”,requiring certified public accountant to increase the Key Audit Matters in the audit report,changed the standardized model of old audit reports.In order to explore the implementation of the standards,this paper conducts a case study on communicating key audit matters of company A by certified public accountants in the audit report.Company A is an enterprise involved in garment manufacturing and sales,as well as research and development,production and sales of anchor ion batteries,which is subject to the provisions of the new audit reporting standards.By single case study method,with the audit of A company’s financial statements as the breakthrough point,through the collation and analysis of audit work data,this paper reviewed the work of H firm in communicating key audit matters in the audit report,including selecting key audit matters and forming consensus with the management layer on communicating key audit matters in the audit report based on H firm’s overall audit opinion on the financial statements of company A.After that,this paper describes the key audit matters section in the audit report of company A by H firm.On the basis of the above work,this paper puts forward some problems existing in the key audit matters communicated by H firm,analyzes the reasons for their emergence,and gives targeted suggestions.The study of H firm’s communication on key audit matters of company A in the audit report in this paper is conducive to improving the work level of certified public accountants,providing guidance for audit practices,enriching case studies on key audit matters,and promoting relevant theoretical studies.