Impact Of The New Auditing Standards For Reports On Audit Pricing

In order to increase the information content of audit reports,maintain consistent and comprehensive convergence with international auditing standards,on December 23,2016,the Ministry of Finance issued 12 notices on the issuance of "China Certified Public Accountant Auditing Standards No.1504-Communicating Key Audit Matters in Audit Reports" and approved the 12 new guidelines drafted by the Chinese Institute of Certified Public Accountants.The new standard for audit report will be implemented on January 1,2017 for the audit report on the use of A + H Lists.And the audit reports of other listed companies shall be implemented on January 1,2018.For the A+H lists,the audit of the2016 annual report shall be conducted in accordance with the new guidelines for audit reports.This article first uses the case analysis method to sort out and summarize the auditing situation of the 94 A+H lists that performed the new guidelines for the audit report.Second,this reform is an exogenous shock,this article selects the A+H lists as the experimental group,and the remaining A-listed companies that do not implement the new criteria for the audit report as the control group,using the data from 2013 to 2016 as the research sample,this paper empirically tests the impact of the new auditing report on the audit pricing by using the method of Difference-in-Difference(DID).Based on this,it is discussed whether the implementation of the new auditing standards will have an impact on the insurance nature audit fees included in the audit pricing.This article is divided into six chapters.The first one is an introduction;the second chapter is the literature review,which reviews and corrects the relevant research on the standard of audit report and the influential factors of audit pricing;the third chapter is about the implementation of the new standard of auditing report,which mainly introduces the situation of A + H lists companies that implement the new standard of auditing report and the specific implementation till now;the fourth chapter is the relevant theories and research hypotheses,mainly discusses related theories and provides theoretical basis for the following empirical analysis,and puts forward research hypotheses accordingly;the fifth chapter is the research design and empirical analysis,empirical analysis includesdescriptive statistics,correlation analysis,propensity score matching,double difference and robustness test;the sixth chapter summarizes the research results of the full text for the research conclusions and policy recommendations,and puts forward several suggestions accordingly,points out the limitations.The main research findings in this paper are:(1)Through the analysis of 94 A+H lists companies implementing the new guidelines for audit reports,it was found that most companies chose the Big Four accounting firms as auditors,and the audit pricing was different between different industries and different firms.Audit report information The most important issue in disclosure is that the contents and methods of disclosure of key auditing items are quite different.In particular,there is a lack of normativeness in the presentation of audit response parts.(2)The empirical results did not find that the implementation of the new auditing standards will affect the audit fees.The empirical results of Difference-in-Difference test show that the implementation of the new standard of the audit report has no significant effect on the audit pricing of A+H lists.(3)The empirical results did not find that the implementation of the new standards for audit reports will increase the audit fees for insurance properties.The results of double differential regression analysis show that although the implementation of the new criteria for the audit report is positively related to the nature of insurance coverage,the statistics are not significant.