Research On The Impact Of Disclosure Of Key Audit Matters On Accounting Robustness

In December,2016,the Ministry of Finance issued a new version of the audit standard,which stipulated how to judge key audit matters and how to communicate.This reform not only improved the audit information content and brought additional information to users,but also had a great impact on improving the audit quality of audit reports.Accounting conservatism is an essential feature of accounting standards,which requires companies to follow more rigorous standards when confirming bad news than when confirming good news.As a reasonable corporate governance mechanism,it can effectively reduce the degree of information asymmetry within the company and among stakeholders,and reduce agency costs and contract costs.To some extent,it restricts the management,making it more prudent and correct in making relevant decisions.Therefore,this paper will discuss the relationship between disclosure of key audit matters and accounting conservatism,and the moderating effect of audit quality on the relationship between them.Therefore,this paper will use principal-agent theory,information asymmetry theory,audit demand insurance theory,signal transmission theory,etc.,and put forward the research hypothesis that the disclosure of key audit matters has a positive impact on accounting conservatism,the more disclosures,the stronger the accounting conservatism of audited units,and the moderating effect of audit quality on the relationship between them.Therefore,this paper selects the sample of Chinese A-share listed companies from 2016 to2020.Through variable design,a multiple regression model is constructed,and empirical research methods such as descriptive statistics,correlation analysis and multiple regression analysis are used to verify the above assumptions.The research results of this paper show that the disclosure of key audit matters is helpful to improve the accounting conservatism of enterprises;The more key audit matters are disclosed,the more robust they are;And audit quality will weaken the positive relationship between them.Then,this paper uses surrogate variable measurement method to test its robustness,and the test results prove that the above conclusions are reliable.The research of this paper has opened up a new horizon for the research on accounting conservatism,enriched the research materials that affect accounting conservatism,broadened the research framework of accounting conservatism,and provided empirical basis for the implementation effect of the new auditing standards.In order to enhance the accounting conservatism of enterprises,enterprises should communicate with auditors about the disclosure of key audit matters in time;When implementing audit reports,certified public accountants should strictly follow the latest audit standards and pay attention to timely communication of key audit matters,so as to more effectively enhance the use value of audit reports;The government and other relevant departments should give full play to the role of supervision and management to further promote the effective implementation of the latest auditing standards and supervise the implementation.