Research On The Information Contents Of Unqualified Auditing Opinion With Key Audit Matters

Audit opinion refers to the auditor after the completion of the audit work,for the forensic object to meet the forensic standards and issued comments.Auditing,as a line of defense against fraud,carries the expectations of users in all aspects of the mission and audit information.With the continuous emergence of fraud and fraud,the standard audit report contains sufficient information to meet the needs of information users.However,the information in the current audit report is focused on the audit opinion.The standard audit opinion is only a few lines in length.In the current situation where the business of an enterprise is more complicated and the accounting treatment method is more and more volatile,it is hard to carry out its duty to transmit information.Therefore,international organizations such as the International Auditing and Assurance Standards Board,the American Public Company Accounting Oversight Committee and other international organizations as international auditors,they are eager to further expand the content of the audit report so that the users of the audit report can get more decision-making related Information.After continuous demonstration and practice,the International Auditing and Assurance Standards Board released a new audit guidelines,of which the audit report is the most precious one is the audit report to add the key audit matters paragraph.Resulting from the fact that the new auditing standard is introduced at a short time,there is no relevant research on the content of unqualified auditing opinions in the strategic audit matters.Based on the combing and theoretical analysis of the previous literature,this paper argues that adding key audit issues can reduce the information gap between the information demand side and the supply side and narrow the expected gap between the information user and the CPA.Through the analysis of the status qua of the unqualified audit opinion of key audit matters and the analysis of the information requirements of the key audit matters,the contents of the 12 key audit matters that are most often concerned by the amount of auditors were summarized.Legal analysis of the unqualified auditing opinions on fundamental auditing matters put forward the hypothesis that the key auditing matters can decrease the CPA litigation risk.In checking to see the hypothesis set out in the present paper,this paper adopts two methods: questionnaire and empirical research.(1)conducting a questionnaire survey on the professional managers of economy and management in colleges and universities,individual and institutional investors in financial institutions,and practitioners in accounting firms.These three groups of people are not just users of audit opinion information,but also have rich experience in stock trading as well as a solid professional background.They selected the five most important items from the 12 strategic audit items and provided some reference for the certified public accountants to disclose the fundamental audit items after the implementation of the new standard.The survey findings collected verify the hypothesis in this article that the key audit items have information content and that increasing the fundamental audit items can enhance the information content of the audit opinion.And most of the respondents think that the key audit items can decrease the CPA's litigation risk to a certain extent.(2)Taking the 93 unqualified audited opinions of A + H listed companies applying for the new auditing standards in 2016 as the research object,this paper obtains the unqualified auditing opinions of the listed company disclosing the key audited matters through empirical research and has Certain conclusions of the information content,so as to gradually provide all the listed companies in our country to conduct audit reports on key audit matters to provide empirical evidence.The questionnaire can collect practical perspectives on the communication of key audit items,and the empirical analysis can analyze the stock market reaction to the strategic audit items,which make up for the lack of subjectivity in the survey.The conclusions reached in this paper are: 1.Communicating the strategic audit items in the audit report can increase the information content of the audit report to a certain extent.2.The results of the questionnaire are shown that the users of the audit opinion hold a positive view on adding strategic audit matters to the audit report.Most of the respondents consider that the standard unqualified audit opinion after adding key audit matters is more informative,can serve as a basis for their economic behavior decisions.At the same time,through the questionnaire survey,respondents also believe that the increase of fundamental audit items can help information users understand the content of audit opinion,and increase the information content of the audit report from the side.4.Since the main respondents in this questionnaire are practitioners of accounting firms,they can obtain some feedback from the substantive community and respondents think that the addition of key auditing items can also be achieved by eliminating the expectation between the information user and the information provider And disclosed more audit information in the audit report as well as matters concerning the communication between certified public accountants and the audited entity's management so as to reduce the risk that certified public accountants may be sued.The countermeasures to improve the content of unqualified audit opinion with key audit matters are as follows : 1.To improve the financial literacy and legal awareness of listed companies,and to prevent fraud from providing information.2,to enhance the supervision of accounting firms.3,regulators need more information on audit users,especially small and medium-sized investors related to the popularity of financial audit information to improve their ability to understand the audit report.