Financial Characteristics Of Listed Companies,internal Control And Disclosure Of Key Audit Matters

In 2015,the IAASB issued and required the implementation of a series of the latest audit reporting standards.In order to keep up with the development of the International Auditing Standards,the Ministry of Finance of my country issued 12 auditing standards including the1504 Auditing Standards in December 2016.Communicating key audit matters in the audit report is the focus of this standard reform.Since January 1,2017,it is required to take the lead in implementing the standard among Chinese A+H-share listed companies,and it will be fully implemented in 2018.Based on the background of the implementation of the new audit report standards in 2017,key audit matters have become an indispensable part of the audit report.Inevitably,their influencing factors have attracted widespread attention from scholars at home and abroad.This paper selects listed companies from 2016 to 2019 as the research sample,takes the number of key audit matters disclosed as the explanatory variable,the financial characteristics of the listed company as the explanatory variable,and the quality of internal control as the moderating variable.Use a linear regression model to focus on the financial characteristics of listed companies(including equity concentration,long-term equity investment ratio,goodwill ratio,cash holdings,profitability,cash flow and profit divergence),internal control and disclosure of key audit matters Research on the relationship between the two,focusing on the analysis of the role of internal control in regulating the financial characteristics of listed companies and the disclosure of key audit matters.The research results show that the financial characteristics of listed companies have a significant correlation with the disclosure of key audit matters;the quality of internal control is significantly negatively correlated with the disclosure of key audit matters;the effect of internal control is significant,and the ratio of internal control quality to long-term equity investment and key audit matters The relationship between disclosures will have a restraining effect;but it will have a strengthening effect on the relationship between equity concentration,cash holdings,total asset net interest rate,and key audit matters disclosures.The research content of this article expands the relevant theoretical research on the factors that affect the disclosure of key audit matters,and enriches the research on the influence of the quality of internal control on the moderating effect of the disclosure of key audit matters.Finally,this article also puts forward relevant suggestions on how to improve the quality of disclosure of key audit matters,and discusses in detail how to regulate the information disclosure of audit reports from the aspects of accounting firms and auditors,so as to enhance the trust of audit report users in the report.