Research On Disclosure Of Key Audit Matters In The Food Production

After the financial crisis in 2008,market investors questioned the role of unified audit reports.In order to increase the accuracy of the content of the report,the International Audit and Assurance Standards Board(IAASB)and China’s regulatory agencies have begun to work on the reform of the audit report.In 2015,IAASB made innovations in auditing standards.In 2016,China’s Audit Standards Committee is reforming based on the actual situation in China,the most prominent change was to take the key audit event segment as a part of the audit report,which made the audit report richer.At present,the relevant standards for key audit matters have been implemented for six years,and their application in the audit report has been initially mature,but the role of key audit matters,the impact on the expected users of financial statements and the problems in the implementation of the standards still need to be further explored.Food is the most important thing for people.Human life cannot be separated from various products in the food industry chain.In October 2022,the Twentieth National Congress of the Communist Party of China took "Healthy China" as an important aspect of the overall development goal of 2035,and put the protection of people’s health on the strategic level of priority.As a pillar industry in China,the food industry will help the implementation of the healthy China policy to a certain extent.With the development of advanced technology in the industry and the continuous strengthening of food safety supervision by the state,the development of the food manufacturing industry is also increasingly valued by investors,which puts forward higher requirements for the quality of information disclosure in the audit report.Based on this,this paper focuses on the disclosure of key audit matters in the food manufacturing industry.Based on modern risk-oriented audit theory,this paper will take J company as a case to analyze the characteristics of key audit matters.First,it analyzes the ssure of key audit matters of food manufacturing enterprises,then introduces the basic situation of the case company,and focuses on the disclosure of key audit matters of the case company and analyzes them.Secondly,based on the disclosure of key audit matters in the industry and case companies,this paper found that the key audit matters in J company have problems such as small number of matters,general expression,low information increment,defects in content,and template,and analyzed the disclosure problems and causes of key audit matters through certified public accountants,accounting firms,audited entities and relevant regulatory agencies.Finally,this paper puts forward countermeasures and suggestions one by one for the reasons of the above problems: at the level of certified public accountants,develop the personalization of the disclosure of key audit matters and improve the professional competence of auditors;At the firm level,optimize the quality management system and strengthen the training mechanism;At the level of the audited unit,it is necessary to strengthen the interaction with the certified public accountants and optimize its own internal control system;At the level of regulatory agencies,improve regulatory policies and pay attention to regulatory timeliness.It is hoped that the research of this paper can help the disclosure of key audit matters of the food manufacturing industry and even the capital market.The innovation points of this paper are as follows:(1)The research content is novel:there are few studies on the disclosure of key audit matters in the food manufacturing industry in the existing literature,and the food manufacturing industry is also receiving more and more attention from investors.This paper enriches the literature gap of key audit matters;(2)The research method is unique: this paper establishes a model and regresses the relationship between the number of key audit matters,the number of audit items and whether the firm is the four largest or the eight largest domestic companies,and obtains the differences between the implementation of key audit matters standards by different firms;(3)Typical research cases: most of the existing studies discuss the effects of key audit matters,but do not study the specific problems of key audit matters in detail.This paper focuses on the J company,analyzes and studies the industry disclosure of key audit matters in the industry in depth,and then puts forward targeted suggestions for the situation of simple repetition and single paradigm.The possible values of this paper are as follows:(1)In terms of theoretical significance,this paper enriches the research methods of disclosure of key audit matters,fills the literature gap,and puts forward suggestions for the reform of the standards.(2)In terms of practical significance,this paper can promote the disclosure of key audit matters in the food manufacturing industry to be more standardized and personalized,and also provide direction for the work of the regulatory authority.