Research On Key Audit Matters Disclosure Of H Certified Public Accountants

The audit report is the final product of a registered accountant after completing the audit work.Through the report,users can obtain relevant information such as the financial status,operating results,and cash flow of the audited entity.The authenticity and fairness of the report have a crucial impact on the investment decisions of report users.After the Enron scandal,which involved Arthur Andersen,one of the "Big Five" certified public accountantss,they became the "Big Four" certified public accountantss.The well-known Ruihua Certified public accountants in China also suffered from audit failures due to financial fraud and subsequently declined.As a result,the trust crisis among report users towards certified public accountantss and registered accountants has grown even more intense.Investors demand that audit reports contain more information to support the audit opinion.Facing the increasing demands of investors,it is imperative to reform auditing practices.Under this background,global auditing standard setters and regulators,including the International Auditing and Assurance Standards Board(IAASB),comprehensively revised the audit report standards on January 15,2015,aiming to enhance information transparency.In order to converge with international auditing standards,China issued auditing standard No.1504 at the end of 2016,which requires disclosure of key audit matters in the audit reports of listed companies starting from early 2018.It can be said that adding the "key audit matters" paragraph is the biggest change in audit reports in decades,and it has exceptional significance for improving the quality of audit reports.However,the Application Guidance of Standard No.1504 issued by the Chinese Institute of Certified Public Accountants(CICPA)only stays at the theoretical level and does not provide specific disclosure details and examples.This may lead to significant subjective differences in the disclosure process of different registered accountants with respect to the key audit matters and expose many problems.Therefore,it is particularly important to conduct research on the disclosure of key audit matters at present.This article is based on existing literature research at home and abroad,combined with relevant theories of key audit matters.H Certified public accountants was chosen as the research case,and its audit reports issued for listed companies in 2020 and 2021 were used as research samples.Following the main ideas of discovering problems,analyzing problems,and solving problems,and using research methods such as comparative research and case study,it was found that H Certified public accountants’ s disclosure of key audit matters had issues such as a high rate of repeated content over the years,non-compliant subheadings,unclear reasons for confirmation,lack of targeted audit responses,and omissions or incompleteness in the index.Next,the reasons for these issues were analyzed from four different levels(audit standards,regulatory institutions,certified public accountantss,and registered accountants),and specific countermeasures were proposed.It is hoped that this research can play a positive role in resolving the current disclosure issues of H Certified public accountants’ s key audit matters,contribute to the application of key audit matter standards,further enhance the information content of audit reports,provide reference value for other audit institutions,and enhance the transparency and credibility of audit work.