Analysis And Improvement On Disclosure Of Key Auditing Matters In Aviation Industry

In 2015,the new international auditing reporting standards increased the disclosure of information in auditing reports,made significant improvements in disclosure elements and enriched the information transmitted in auditing reports,which directly promoted the reform of auditing reports in China.On December 23,2016,China’s Ministry of Finance approved the release of "Auditing Standards for Certified Public Accountants 1504-Communicating Key Auditing Matters in Auditing." The new audit reporting standards will be implemented on January 1,2017 for A+H-share listed companies and January 1,2018 for other listed companies.At present,the existing research on key audit matters mainly includes the research on the degree of information contained in key audit matters and the advantages and disadvantages of disclosure of key audit matters compared with the expected users and auditors of report information.However,the existing literature pays less attention to the disclosure of key audit matters,and lacks the overall analysis of the disclosure of key audit matters from 2016 to 2018,and obtains improvement through its existing problems.In this paper,the literature research method and case comparative analysis method are combined.Firstly,the existing scholars’ research is analyzed and summarized,and there are views on disclosure of key audit matters.Secondly,this paper analyzes the relevant theories of key audit matters,and studies the number,confirmation reasons,response and other factors of key audit matters of seven listed companies in the aviation industry from 2016 to 2018.Taking China Southern Airlines as an example,this paper studies from two dimensions: disclosure of key audit matters,changes under CAS21-2018 and impacts on key audit matters.The analysis shows that there are some problems in the disclosure of key audit items in aviation industry,such as insufficient quantity,numerous expressions,template trend of description,insufficient information value,and insufficient disclosure of new accounting standards,etc.It also suggests that certified public accountants should perfect the disclosure of key audit items from various aspects,such as perfecting various elements of key audit items,combining the characteristics of the industry,audited units and new accounting policies,and improving their professional competence and communication ability.The possible contributions of this paper are as follows: First,the existing researches mostly focus on the information content,advantages and disadvantages of key audit items or the disclosure of key audit items in a certain year.This paper selects the disclosure of key audit items in aviation for 3 years to analyze,and analyzes the impact of changes in CAS21-2018 on key audit items in aviation industry.Second,this paper is highly time-sensitive,in order to provide suggestions for certified public accountants to grasp the key audit areas when auditing listed companies in industries with similar situations with the aviation industry,which has guiding significance for the improvement direction of key audit matters in the future.