Research On The Identification And Response Of Key Audit Matters

The new auditing standards' implementation has brought the biggest changes in the last decade.The status of key audit matters in audit reports will become increasingly important.Communicating key audit matters in audit reports is becoming a hot topic in the current audit field.China's economy is constantly developing,society is constantly improving,and the process of urbanization is constantly advancing.As the number of private cars increases,urban traffic congestion is getting worse.The heavy traffic burden has caused serious energy problems and environmental issues.China's urban transportation development strategy is in urgent need of reform.China should give priority to the development of public transportation.Public Transportation Corporation of H City is managed by the local government.Public Transportation Corporation of H City is a public welfare enterprise which is belongs to the state.The local governme nt offers funds to support the daily operation of this bus company.The specific audit of public transport enterprises is closely related to the interests of the public.There are still few theories about methods and standards for identification and risk r esponse of key audit matters in the specific audit of Bus Company's price adjustment.This paper arranges the decision framework for key audit matters.In addition,it summarized identification and communication methods of key audit matters.This paper discussed two stages of the specific audit of public transport enterprises,identification and risk response of key audit matters.It summarized the identification and evaluation system of key audit matters and the work focus of the specific audit of bus company price adjustment costs.This study found that communicating key audit matters in the bus company's special audit can improve the efficiency of communication and the efficiency of risk response.In addition,this paper summarizes the processing of the key audit matters for government's supervision of price adjustment.