Proceedings of the 2017 2nd International Conference on Education, Management Science and Economics (ICEMSE 2017)

The Benefit of Adding Key Audit Matters to the Auditing Report

Authors
Hao Li
Corresponding Author
Hao Li
Available Online December 2017.
DOI
https://doi.org/10.2991/icemse-17.2017.6How to use a DOI?
Keywords
key audit matters, benefit, audit quality, market reaction
Abstract
On December 23rd, 2016, the Ministry of Finance issued a new audit guideline "No. 1504 Auditing Standards for Chinese Certified Public Accountants - Communicating Key Audit Matters in Auditing Report." Based on the audit report of 84 A+ H-share listed companies in 2016, we investigated the cost and benefit of new key audit matters. The results we obtained demonstrate that the disclosure of additional information by Chinese auditors has very limited effects, comparing with the content and form of the key audit matters of foreign countries. Our empirical results do not support the idea that the disclosure of key audit matters brings significant benefits. Our findings indicate that the disclosure of additional information by the auditors rather has a symbolic value than an informative value. However, our studies allow enriching the current international debate on the introduction of key audit matters.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Hao Li
PY  - 2017/12
DA  - 2017/12
TI  - The Benefit of Adding Key Audit Matters to the Auditing Report
BT  - Proceedings of the 2017 2nd International Conference on Education, Management Science and Economics (ICEMSE 2017)
PB  - Atlantis Press
SP  - 21
EP  - 24
SN  - 2352-5428
UR  - https://doi.org/10.2991/icemse-17.2017.6
DO  - https://doi.org/10.2991/icemse-17.2017.6
ID  - Li2017/12
ER  -