Impact Of New Audit Standards On Audit Quality

Audit report is the final result of the work of certified public accountants.It reflects the conclusion after the audit work is completed and is closely related to the audit quality.The old audit report has the advantages of uniform format and simple content,but at the same time,there are also shortcomings of insufficient audit information and uniform content,which also affect the quality of audit and the usefulness of decision-making to some extent.In the wake of the financial crisis of 2008,there has been a growing demand for high audit quality,and audit reports have initiated ongoing reforms to improve audit quality.The International Auditing and Assurance Standards Board(IAASB)revised and issued new international auditing standards in 2015,substantially innovating audit reports and opening the way for a comprehensive reform of auditing report standards.China's followed up the new revised audit report timely since various financial systems and international systems are close to convergence.The Ministry of Finance issued 12 auditing standards such as "Communication of Key Audit Matters in Audit Reports" in December 2016(New Auditing Standards).The most central standard of these is the newly formulated China Certified Public Accountants Audit Standard No.1504-Communication of Key Audit Matters in Audit Reports.According to the issuance of the new auditing standards by the Chinese Institute of Certified Public Accountants,the new auditing standards will bring benefits such as "increasing the information content of audit reports,enhancing the transparency of audit work,and improving the quality of audit" to audit work.The new auditing report standards were first implemented on 2017 in A+H SHARES listed companies and pure H SHARES listed companies.So far,A+H SHARES listed companies have fully implemented the new audit report guidelines for two years.This paper takes A+H listed companies as samples,and adopts statistical,empirical and case research methods to analyze the impact of new audit reporting standards and key audit matters on audit quality.It adopts many comprehensive research methods to make up for the shortcomings of single research method.In the case study,the method of comparative analysis of positive and negative cases was used to study the reasons behind the opposite effects.In this paper,statistical analysis was carried out from multiple perspectives to reflect the differences before and after the change of the guidelines,the empirical study used the modified Jones model to calculate the maneuverability accruals,measure the audit quality,and analyze the relevant effects through multiple linear regression methods.The case study selected the positive case of SCPH and the reverse case NEE before and after the implementation of the new standard.In the end,it is concluded that the overall new audit reporting standards and key auditing matters can improve the quality of auditing.However,there are a few of companies that cannot rely on the implementation of new audit reporting standards and key auditing matters to effectively control the level of earnings management.It need to take a variety of measures to assist in the work.