Corporate Internal Governance,Auditor Industry Expertise And Key Audit Matters

Since 2017,the new auditing standards have been the first to implement A + H Stock Company,which requires the inclusion of key issues in the audit report.Since January 1,2018,all A-listed companies are required to disclose key audit issues.Furthermore,the new audit criteria will also include the level of management of the auditee,which will enhance the interaction and communication between the auditor and the management.It is a new trial of the audit report.If it can be carried out efficiently and continuously,the key audit project will be an important increment of information,which will greatly enhance the quality of the audit and promote the healthy development of the capital market.Therefore,the disclosure of key audit issues is not only the response of Chinese Institute of Certified Public Accountants,but also an important measure to enhance the personalized information of audit report.Nowadays,there are a lot of researches on key audit issues at home and abroad.Most of them are concerned about the effect of key audit events on the main body and object,but little on the influential factors of key audit.On the basis of the existing research achievements,this paper takes the key audit project disclosure as the research subject,and verifies the relevance of the internal governance,the professional expertise and the adequacy of the key audit items.Firstly,the thesis introduces the background,meaning,content and innovation of this thesis,and then makes a review of the related theories at home and abroad,and puts forward the hypothesis of this thesis.To test the intermediary effect of the professional expertise of the auditor,the paper builds the empirical model based on the step test method.The method of principal component analysis was adopted.The index is used to measure the corporate internal governance level.Using STATA 15.0 software,descriptive statistics,correlation analysis and regression analysis were used to analyze the sample data of Shanghai and Shenzhen listed companies between 2017 and 2021.The result of the experiment has passed the robust test.The results indicate that:(1)The higher the corporate governance,the more adequate the number,content and handling procedures are,and(2)the expertise of the audit industry acts as a mediator between the internal governance and the adequacy of key audit issues.(3)Further research indicates that the transparency of accounting information influences the mediation effect of the audit profession,which is more significant in the case of a company with less transparency in accounting information.Finally,the author gives some advice to the enterprises,the accountants,the auditors,and the supervisory authorities.In this paper,the factors that influence the disclosure of key audit issues are discussed,and the impact of the internal governance on key audit issues is discussed.The research on the influential factors can help the prospective clients to reduce the asymmetry of the information,and improve the communication between the investors and the auditors.Last but not least,the disclosure of key audit issues can enhance the communication and interaction between the management and the auditor,and make the company more efficient.