Research On The Disclosure Of Key Audit Matters By Lixin Accounting Firm

The Ministry of Finance of China issued the "Chinese Certified Public Accountants Audit Standards No.1504-Communication of Key Audit Matters in Audit Reports" in 2016,and further defined the standards in January 2022.The main change in the new standards is to require auditors to disclose key audit matters in their audit reports.However,in the process of implementing audit procedure,there are still many problems in the disclosure of key audit matters.Therefore,analyzing and exploring the disclosure of key audit matters is of great significance.This article,based on practical cases and from the perspective of accounting firms,summarizes and analyzes the disclosure of key audit matters.This not only enriches the relevant research on key audit matters,but also provides certain assistance for accounting firms to carry out audit work,ensuring that more valuable audit reports are provided to users of financial statements.This article adopts research methods such as multi case analysis,literature analysis,content analysis,and comparative analysis,and uses information asymmetry theory,risk oriented audit theory,and audit expectation gap theory to write the paper.To ensure the feasibility of the corresponding conclusions,this article selects Lixin Accounting Firm(hereinafter referred to as Lixin Accounting Firm)as the research object,following the research approach of discovering,analyzing,and solving problems,to study the disclosure of key audit matters.This article uses a stratified sampling method to select some audit reports from Lixin Certified Public Accountants in 2021,and statistically analyzes the characteristics and main problems of Lixin Certified Public Accountants’ handling of key audit matters in2021.Through research,it has been found that the main problems in the disclosure of key audit matters by Lixin Certified Public Accountants include: a small number of key audit matters;The constituent elements of key audit matters in some audit reports are not complete enough;Concentrated types of key audit matters;The disclosure description of key audit matters is template based and has a high degree of content repetition;There are significant differences in the adequacy of the audit response measures disclosed for key audit matters.After fully understanding its existing problems,this article analyzes the reasons for such problems and proposes the following countermeasures to solve related problems:strengthening the ability and awareness of certified public accountants to disclose key audit matters,and strengthening communication with the management of the audited entity;Optimize the disclosure of key audit matters by accounting firms,strengthen auditor training,provide guidance in accordance with standards,and improve the quality of disclosure of key audit matters;Strengthen the guidance and supervision of regulatory agencies on key audit matters,urge audit institutions to be diligent and responsible,and promote accounting firms to better carry out audit work and achieve high-quality disclosure of key audit matters.