Evaluation Of The Effectiveness Of The New Auditing Standards

The traditional audit report has a uniform format and monotonous content,and its difference is only reflected in the audit opinion.The information content,transparency,and communication value are far from enough,and the role of communication has not been reflected.In response to the needs of investors and regulatory agencies for highquality audit information,the American Public Company Accounting Oversight Board(PCAOB)and the International Auditing and Assurance Standards Board(IAASB)have successively issued new auditing standards that require certified public accountants to audit The report discloses key audit matters(Key Audit Matters,KAM).In order to adapt to changes in international standards and meet the needs of domestic auditing,the Chinese Institute of Certified Public Accountants drafted 12 new auditing standards at the end of 16 after extensively listening to the opinions of all parties.The direct and indirect consequences of the implementation of the new auditing standards have always been the issues that stakeholders are most concerned about.Among them,it is more prominent whether there are obvious changes in audit costs and audit quality.This study of this paper combed the relevant literatures of scholars from various countries at home and abroad on the evaluation of the implementation effect of the new auditing standards,and found that the existing research mainly stays on the market response after the change of the new standard,the changes in audit fees and audit quality,etc.The standards require disclosure of the key audit matters' text content on audit costs and audit quality,and the research results of scholars in different countries are inconsistent.Scholars in different countries such as Britain and France have different results based on market data in their respective countries.Therefore,this article explores based on the following two points: First,the correlation between the KAM text and the implementation effect of the new standard(audit cost,audit quality);Second,the impact of different information environments on the implementation effect of the new standard(audit cost,audit quality).This study of this paper analyzes and evaluates the above research issues using data from the Shanghai and Shenzhen Main Board combined with evaluation methods based on empirical research.The evaluation results show that the lower the amount of text content information in KAM,the higher the audit cost,and at the same time positively related to audit quality;the greater the number of KAM,the higher the audit cost and the higher the audit quality.In the study of the impact of differences in information environment on the implementation of the new standard,this article takes the quality of the information environment and whether the standard is implemented as a multiplicative item,and observes the changes in audit costs and quality of listed companies in different information environments under the new standard.The evaluation results show that,overall,the implementation of the new auditing standards has achieved the expected goal of improving audit quality and information content.Companies with poor information environments are more sensitive to the implementation of the new auditing standards and are more motivated to implement sufficient audit procedures.The increase in costs and audit quality is even more significant.Based on the above evaluation results,this article puts forward targeted optimization suggestions for policy implementation.