Research On The Impact Of New Auditing Standards On Audit Quality

For a long time,the unification of the content and format of audit reports has brought inconvenience to users of audit information.Problems such as low information content and unrecognized key issues have been plagued by information users.The public provides audit reports and services provided by certified public accountants.lack of confidence.In order to improve this situation and increase the value of audit reports,the International Auditing and Assurance Standards Board(IAASB)revised 6 items and issued 1 new auditing standards in 2015,which required high-information audit reports.In compliance with the international situation,China issued new auditing standards in December 2016,including 12 standards of the "Chinese Certified Public Accountant Standards No.1504-Adding Key Audit Matters to Audit Reports",and required that on January 1,2017,The pilot implementation of A + H shares and pure H shares listed companies will be implemented on all listed companies from January 1,2018.This reform issued a total of 12 auditing standards,including one newly formulated standard,namely standard 1504,and the substantially revised standards are respectively 1501,1502,1503,1151,1324,and 1521,The only adjustments made only in text are 1111,1131,1301,1332,and 1341.The most important part of the standard is the addition of key audit matters in the audit report No.1504,that is,the disclosure of key matters in this audit and the In response to key issues,in other aspects,disclosure requirements were made on the “other matters” of the audit report,“communication with management”,and “continuing operations”.Based on the background of the above reform of auditing standards,this paper uses a combination of theoretical analysis and empirical analysis to detail how auditing standards reform can bring about changes in audit quality for China.It is mainly the addition of “key audit matters” and other changes.The adjustment and improvement of the audit report structure brought about by the analysis of the implementation of the new auditing standards,accounting firms with industry expertise can better understand and implement the new standards,play the role of industry expertise,and provide more effective The good institutional environment has also paved the way for the implementation of the new auditing standards.Good legal and economic institutional factors provide a better "test water" environment for the implementation of the new standards and guarantee its implementation from the side.Therefore,three hypotheses are proposed in this paper.Based on the assumptions,the changes in the financial data of listed companies in the A-share market before and after the implementation of the new standard,that is,from 2014 to 2018 Differences in audit quality.This paper uses earnings management to quantify audit quality,selects manipulated accrued profits based on profit adjustment as a substitute variable for audit quality,and draws the conclusion of this article: The changes in financial data over the past five years show that audit quality is new and new There is a significant positive correlation between the implementation of auditing standards,and a significant positive correlation between the quality of audits and the implementation of auditing standards and industry expertise of accounting firms.There is also a correlation between the quality of auditing and the implementation of auditing standards and the institutional environment.Significant positive correlation.Based on the information provided by these changes in financial data,it is concluded that the new auditing standards have improved the audit quality to a certain extent,and that the certified public accountants have industry expertise and a good institutional environment also promote the role of auditing standards.The limitation of the research in this article is that the continuous tracking of the new standard has only been carried out for 3 years.From the perspective of time,it is the research and observation of the early stage of the reform.It is impossible to study the performance of the standard in the long-term continuous state.When there is a promotion effect,the overall index of the marketization index is selected,and the impact of the institutional environment on the implementation of the guidelines is not measured from the specific government and legal perspectives.Future research in this area can use long-term data to observe whether the new standard's role in promoting audit quality is stable after the data is updated for a certain period of time.It also provides a certain reference for policy makers to determine the direction of standard setting;in the research system When the role of the environment,specific sub-dimensional indicators can be used to measure the impact on audit quality.