The model disclosure of traditional audit reports cannot meet the needs of investors for obtaining valuable information, and the problem of the “audit expectations gap” is becoming more and more serious. Based on the policy background of the new audit report standards issued by the Ministry of Finance in December 2016, this paper takes A+H listed companies as the sample and examines the relationship between the audit reports reconstruction and the cost of equity capital. Research shows that the reconstruction of audit reports significantly reduces the cost of equity capital. Further, the more the number of key audit items disclosed, the lower the cost of equity capital; audit report restructuring plays a significant role in the cost of equity capital in the companies with higher information asymmetry, lower level of internal control, poorer media environment, or higher agency conflict. This study can not only provide evidence on the economic consequences of the audit report reconstruction but also improve the efficiency of investors'decision-making and maintain the order of the capital market.