Research On Key Audit Matters Of Yatai Pharma Which Disclosed By Pan-China Certified Public Accountants

In traditional audit reports,certified public accountants express audit results by issuing brief audit opinions,so the information obtained by audit report users is limited.The financial crisis in 2008 exposed the problem that traditional audit reports could not meet the information needs of investors.Based on this background,the International Auditing and Assurance Standards Board issued a new version of audit reporting standards in 2015.In order to converge with international auditing standards,the Ministry of Finance issued“the audit standards for Chinese certified public accountants no.1504-communicating key audit matters in audit reports” and application guidelines in 2016.The new audit standards will be implemented from January 1,2017,and will be first applied to A-share and H-share listed companies,and will be fully implemented from 2018.The new audit standards have been fully implemented for more than five years,and the implementation effect of relevant policies has been supported by certain data.However,in the past,scholars mainly used empirical research methods or based on all A+ H-share listed companies in China to carry out research on key audit matters,while there is a lack of research on the disclosure of key audit matters of case companies in audit practice,which is not practical.As the standards for key audit matters are still in the exploratory stage in the application of audit practice,there are still many problems in the actual disclosure process,so it is of theoretical value and practical significance to explore the problems in the disclosure of key audit matters in specific case companies.This thesis focuses on the disclosure of key audit matters of Yatai Pharma in 2018-2021 by Pan-China Certified Public Accountants.Firstly,this thesis make statistics and Analysis on the disclosure of key audit matters of Yatai Pharma from two aspects: vertical comparison of enterprises in each year and horizontal comparison of the same industry.It is found that the number of disclosure of key audit matters of Yatai Pharma is small,the type of disclosure is single,The disclosure reasons are templated and the audit response procedures are routine.Secondly,this thesis makes an in-depth analysis of the specific matters of Yatai Pharma,and finds that Pan-China Certified Public Accountants mainly has some problems in the process of disclosing the key audit matters of Asia Pacific pharmaceutical industry,such as too concentrated disclosure types of key audit matters,unclear disclosure of the reasons for confirming key audit matters,insufficient audit response procedures for key audit matters,and incomplete disclosure of key audit matters.Thirdly,in view of the above problems,this thesis summarizes and analyzes the causes behind them from the four levels of certified public accountants,accounting firms,policy makers and regulators,and finds that the deep reasons are mainly the lack of independence and professional competence of Certified Public Accountants in the process of disclosing key audit matters;Pan-China Certified Public Accountants lacks the implementation standards for key audit matters in practical work,the quality control review system for key audit matters is imperfect,and Pan-China Certified Public Accountants in order to maintain customer business relations,the disclosure process has some non-standard operations;Policy makers did not clarify the relevant provisions on the recognition criteria of key audit matters,the disclosure of quality evaluation system and the rights and responsibilities of both parties to the audit;The supervision of regulators is not strong.Finally,according to the problems and reasons in the case,this thesis puts forward the following suggestions: Certified Public Accountants should strive to improve their independence and professional competence;Accounting firms should establish the practice concept of quality first,clarify the specific implementation norms of key audit matters,and strengthen the quality review of key audit matters;Policy makers should improve and refine the relevant provisions of the new audit standards;Regulators should strengthen supervision.By studying the problems and suggestions existing in the process of disclosing key audit matters of Yatai Pharma by Pan-China Certified Public Accountants,this thesis hopes to provide warnings and reference for other accounting firms,and to provide relevant reference for policy makers to further supplement and improve audit standards and regulators to strengthen the supervision of key audit matters disclosure,Then promote the reform of audit reports in China and improve the quality of disclosure of key audit matters.