Research On The Influence Of Key Audit Matters Communication On Dahua Certified Public Accountants

There are some shortcomings in the traditional audit report model,for example,the lack of information,the lack of transparency.With the development of economy and the change of information demanders,this kind of report obviously cannot meet people’s needs.In order to make up for these defects and better serve a large number of users,countries have started the reform upsurge of audit reports.Nor is China an exception.In December 2016,the Ministry of Finance of China issued the 1504 Standard.By 2020,China has continuously communicated key audit matters For four consecutive years.With the implementationof the standard in China,whether the effect of disclosure in recent years is good.In particular,auditors are the executors of the new standards,and whet Her the implementation of key audit matters has affected their behavior.Does the communication of key audit matter have improved the audit quality.These are the issues that the current academic community focuses on,and are worthy of a series of analysis and However,the current Most of the research is empirical,and there is little case study.Therefore,the author chooses Dahua Certified Public Accountants as an example to analyze the status quo of Chinese key audit affairs.introduces the current situation of Dahua Certified Public Accountants,and studies the impact of communication of key audit matters on the audit quality of Dahua Certified Public Accountants.Because the audit quality is not easy to quantify,four substitute variables are selected to reflect the change of audit quality: audit fee,audit opinion,financial report restatement and earnings management level.It is concluded that key audit matters can improve audit quality by increasing audit fees,increasing the ratio of non-standard opinions,reducing the restatement ratio of financial reports,and reducing the level of earnings management.Finally,this thesis puts forward suggestions for the certified public accountants to improve the identification ability of key audit matters,make reasonable use of the work of experts,and reasonably define the reasons for the identification of key audit matters.For the accounting firms,this thesis puts forward suggestions to pay close attention to the auditors’ work behavior and guide the communication of key audit matters.For the standard setters,This thesis puts forward suggestions to clearly stipulate the writing of key audit matters and clearly define the content and quantity of key audit matters.