Impact of Key Audit Matters on Accounting Information Management by REA Model

Author:

Du Na

Abstract

High-quality accounting information can help enterprises improve their operating conditions and provide useful information for other stakeholders in the market to make decisions. It plays an important role in optimizing the efficiency of the capital market. Firstly, the relevant literature on key audit matters and accounting information quality is sorted out. Then, the Resource, Event, Agent (REA) model is constructed to analyze the relationship between key audit events and the quality of accounting information. Based on the text characteristics and specific types of key audit items, this paper deeply analyzes the impact on the quality of accounting information. The empirical results show that the key audit disclosure helps improve accounting information management. The improvement effect on accounting information management is more significant in enterprises with high earnings management and analyst concerns. In addition, from the perspective of text characteristics, the more key audit events are disclosed, the more detailed the description and response paragraphs are, and the more significant the improvement effect on the quality of accounting information is. The disclosure of asset impairment types is helpful for the quality of accounting information management. The type of fair value measurement is not conducive to improving the quality of accounting information management. Based on the REA model, the implementation effect of key audit items is verified, which has positive significance for deepening the reform of audit standards and improving the efficiency of the capital market.

Publisher

EDP Sciences

Subject

General Medicine

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