Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China
In this paper, multiple linear regression model is used to predict and test the effect of audit policy changes in the capital markets. In 2016, China issued a new reporting guideline which included the addition of key audit matters (KAMs) as the core focus. It was required that all A+H-share compani...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2023-07-01
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| Series: | Applied Mathematics and Nonlinear Sciences |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/amns.2023.2.01127 |
| _version_ | 1797266063397748736 |
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| author | Wei Xiaoyan Zhang Lifang Li Jing Zhou Xiyu Thomas |
| author_facet | Wei Xiaoyan Zhang Lifang Li Jing Zhou Xiyu Thomas |
| author_sort | Wei Xiaoyan |
| collection | DOAJ |
| description | In this paper, multiple linear regression model is used to predict and test the effect of audit policy changes in the capital markets. In 2016, China issued a new reporting guideline which included the addition of key audit matters (KAMs) as the core focus. It was required that all A+H-share companies should implement these in their reporting in 2017, as well as all domestic listed companies in 2018. In order to study the impact of the KAMs standard on the audit quality of Chinese commercial banks, we analysed the KAMs as disclosed by commercial banks as well as any further change in audit quality at these banks before and after implementation of the new auditing reporting standards. The results show that the disclosure of KAMs significantly promotes the improvement of loan impairment provisions in commercial banks, thus inhibiting potential earnings manipulation by management and improving the quality of financial information. The level of loan impairment provision plays an intermediary role in the improvement of bank audit quality in the new reporting standards. |
| first_indexed | 2024-03-07T16:18:32Z |
| format | Article |
| id | doaj.art-2b5df5b9126b4d5b8ce2017abb8de4e6 |
| institution | Directory Open Access Journal |
| issn | 2444-8656 |
| language | English |
| last_indexed | 2024-04-25T00:54:44Z |
| publishDate | 2023-07-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Applied Mathematics and Nonlinear Sciences |
| spelling | doaj.art-2b5df5b9126b4d5b8ce2017abb8de4e62024-03-11T10:05:47ZengSciendoApplied Mathematics and Nonlinear Sciences2444-86562023-07-01823241325810.2478/amns.2023.2.01127Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from ChinaWei Xiaoyan0Zhang Lifang1Li Jing2Zhou Xiyu Thomas31School of Accounting, Shanghai Lixin University of Accounting and Finance, Shanghai, China.1School of Accounting, Shanghai Lixin University of Accounting and Finance, Shanghai, China.1School of Accounting, Shanghai Lixin University of Accounting and Finance, Shanghai, China.2College of Business and Security Management, University of Alaska, Fairbanks, USA.In this paper, multiple linear regression model is used to predict and test the effect of audit policy changes in the capital markets. In 2016, China issued a new reporting guideline which included the addition of key audit matters (KAMs) as the core focus. It was required that all A+H-share companies should implement these in their reporting in 2017, as well as all domestic listed companies in 2018. In order to study the impact of the KAMs standard on the audit quality of Chinese commercial banks, we analysed the KAMs as disclosed by commercial banks as well as any further change in audit quality at these banks before and after implementation of the new auditing reporting standards. The results show that the disclosure of KAMs significantly promotes the improvement of loan impairment provisions in commercial banks, thus inhibiting potential earnings manipulation by management and improving the quality of financial information. The level of loan impairment provision plays an intermediary role in the improvement of bank audit quality in the new reporting standards.https://doi.org/10.2478/amns.2023.2.01127multiple linear regressionkey audit matterscommercial banksaudit qualityloan impairment provision62j0591b44 |
| spellingShingle | Wei Xiaoyan Zhang Lifang Li Jing Zhou Xiyu Thomas Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China Applied Mathematics and Nonlinear Sciences multiple linear regression key audit matters commercial banks audit quality loan impairment provision 62j05 91b44 |
| title | Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China |
| title_full | Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China |
| title_fullStr | Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China |
| title_full_unstemmed | Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China |
| title_short | Research on the influence of key audit matters on the audit quality of commercial banks-Evidence from China |
| title_sort | research on the influence of key audit matters on the audit quality of commercial banks evidence from china |
| topic | multiple linear regression key audit matters commercial banks audit quality loan impairment provision 62j05 91b44 |
| url | https://doi.org/10.2478/amns.2023.2.01127 |
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