Research On Disclosure Of Key Audit Matters In A-share Baiiiu Industry

On the road of reform of China’s auditing standards,"Chinese CPA Auditing Standard No.1504,Communicating Critical Audit Matters in the Audit Report" was introduced on December 23,2016,which requires A-share listed companies to add the heading of "critical audit matters" in their audit reports starting from 2017,with the aim of enhancing The purpose is to enhance the information content of audit reports.In the context of this policy,the liquor industry made its first disclosure of key audit matters in 2017,but there are problems with the current disclosure format and boilerplate content.And with the continued development momentum of the liquor industry in recent years and its eye-catching performance in the stock market,it is expected that users of the report will pay more attention to the audit report,so it is important to study the disclosure of key audit matters in the liquor industry.In this study,19 liquor companies in the A-share market are used as research subjects to uncover disclosure issues and propose measures by compiling their disclosure of key audit matters.Firstly,based on the theories of principal-agent theory,information asymmetry theory and audit expectation difference,the disclosure behavior is combined with economic behavior,while the connotation of key audit matters in the new standard is studied and the analysis path is laid down.Secondly,the statistical description method and comparative analysis method are adopted to organize the key audit matters in the annual reports of 19 liquor companies from 2017 to 2020,and the disclosure of key audit matters of liquor companies in China is initially explored.The three most frequently disclosed items,revenue recognition,inventory-related and monetary funds,were then specifically analyzed in relation to the industry characteristics of liquor companies,and then compared and analyzed from a multidimensional perspective of different years and different industry positions.The above study revealed that the liquor industry has problems such as homogenization of disclosure content and deficiencies in the description of matter results in the disclosure of key audit matters in the last four years.In response to the problems,measures are given that should enhance the understanding of the standards to improve the professional quality of the accounting firm,strengthen the quality review,and refine the standards according to the characteristics of the industry.