Here are some research findings regarding Chinese investors' trust in expanded audit reports:
- A study conducted by KPMG China and the Chinese Institute of Public Accountants (CICPA) found that Chinese investors generally have a positive view of expanded audit reports. The majority of investors surveyed indicated that they believe expanded audit reports provide useful information for investment decision-making, particularly with respect to areas such as risk management, internal control, and corporate governance.
- Another study by the University of International Business and Economics (UIBE) in China explored the perceived credibility of expanded audit reports among Chinese institutional investors. The findings suggest that Chinese institutional investors place more trust in expanded audit reports issued by reputable accounting firms and those prepared in accordance with international standards such as the International Standards on Auditing (ISAs).
- However, it is worth noting that Chinese investors may also be influenced by other factors when evaluating the credibility of expanded audit reports, such as their understanding of the financial reporting framework, the complexity of the company's operations, and the perceived independence and objectivity of the auditors.
Overall, the available research indicates that Chinese investors do generally trust expanded audit reports, particularly those issued by reputable accounting firms and those prepared in accordance with international standards. However, trust can be influenced by various factors, and it is important for accounting professionals and companies to consider these factors when preparing and disseminating expanded audit reports to ensure they effectively meet the needs and expectations of users.
