The Benefit of Adding Key Audit Matters to the Auditing Report

DOI

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.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - 10.2991/icemse-17.2017.6
ID  - Li2017/12
ER  -