Research On Key Audit Matters Of Hanbang Hi-Tech Which Disclosed By LX Accounting Firm

In 2016,the Chinese Certified Public Accountants Auditing Standard No.1504-Communicating KAMs in Audit Reports has been published by the MOF,which required A+H-share listed companies and H-share companies that follow the CICPA Standards to take the lead in disclosing KAMs in accordance with the relevant requirements of the KAMs Standards from January 1,2017,and have been implemented in the audit work of listed companies nationwide since 2018.The KAMs standard has been implemented in China for six years,and the addition of KAMs paragraphs to the audit report compared with the traditional format of the audit report has a certain role in improving the information transparency of the audit report of listed companies,narrowing the information gap,etc.,and can better help the users of the audit report to make decisions,and to a certain extent,the goal of audit report reform has been achieved.However,it has been a short time of the disclosure of KAMs in the auditing report,and there still are some problems due to short time and insufficient experience,for example,in terms of disclosure content,the content of KAMs of the same listed company in consecutive years is very similar,unless a major transaction or event is added in the current period,which is contrary to the original intention of disclosing KAMs-"improve the personalization of audit reports".Starting from the disclosure of key audit matters of Hanbang Hi-Tech by LX Accounting Firm from 2017 to 2020,this paper systematically sorts out the key audit matters of Hanbang Hi-Tech in the 2017-2020 annual report of LX Accounting Firm according to the idea of discovering problems,analyzing the causes of problems,and responding to problems according to the causes.By listing excellent cases of other accounting firms in the disclosure of key audit matters,it is necessary to show the problems existing in the disclosure of key audit matters of Hanbang Hi-Tech by LX Accounting Firm,including industry convergence in the disclosure content,similarity of disclosure content in different years,poor readability of text descriptions and incomplete audit response measures,and analyzes the causes of problems.Suggestions for strengthening the quality management of disclosure of key audit matters,actively conducting experience in disclosure of key audit matters,and strengthening effective communication with governance.It is hoped that it can play a certain role in helping LX Accounting Firm improve the quality of the disclosure of key audit matters,and at the same time provide solutions for other accounting firms in China that may arise in the work of disclosure of key audit matters.