Research On Key Audit Matters Disclosure In The Financial Industry

The audit report is a report of the auditor’s opinion after the auditor has implemented the audit procedures on the auditee.The audit report has evolved from a non-standard format to a standard format.In the audit report,the CPA can only express the audit results in the audit opinion section.The outbreak of the financial crisis has led people to realize that existing audit reports do not sufficiently provide the information investors need.Therefore,the International Auditing and Assurance Standards Board issued a new audit report standard in 2015.In order to maintain convergence with international auditing standards and provide more incremental information for investors,China issued China’s auditing standards 1504 in 2016-communicates key auditing matters in audit reports,which requires in 2017 all audited units in A+H shares to disclose key audit matters and in 2018 all listed companies to disclose key audit matters.Disclosure of key audit matters can improve the transparency of the audit process,increase the usefulness and relevance of audit reports,and provide investors with more incremental information.Through the research on the disclosure of key audit matters in the financial industry,this paper points out the problems existing in the current key audit matters disclosures and provides relevant suggestions to better improve the disclosure of key audit matters and increase the use value of audit reports.This paper studies the disclosure of key audit matters in the financial industry by combining the literature research method with the case study method.First of all,this paper analyzes and summarizes the relevant documents of key auditing matters,and draws the main research directions of scholars at present.On this basis,the research direction of this paper is determined.Secondly,this paper analyzes the changes of audit report standards and related theories of key audit matters,and conducts research on the disclosure forms,disclosure quantities and disclosure contents of the key audit matters of the financial industry in 2016-2018,and analyzes the characteristics of key audit matters and the impact of accounting firms on the disclosure of key audit matters.Then,this paper takes the disclosure of key audit matters of Agricultural Bank as a case,further analyzes the characteristics of key audit matters disclosure and the impact of accounting firms on disclosure of key audit matters,and points out the problems existing in the disclosure of key audit matters and the the causes of the problems.Finally,relevant suggestions are given on how to improve the disclosure of key audit matters.