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Study On The Governance Of Audit Committee In China's Listed Companies

Posted on:2017-01-28Degree:DoctorType:Dissertation
Country:ChinaCandidate:Q J HuangFull Text:PDF
GTID:1319330512474781Subject:Accounting
Abstract/Summary:PDF Full Text Request
In 1938 the outbreak of Michelson bobbins company financial fraud,is widely considered to be the buds of the audit committee system.Set up the audit committee in the company at the time of the original purpose is to make the power of the appointment of the external audit from the hands of management,in order to avoid management collusion,suppress external audit,so that the external audit cannot be independent,objective and fair audit opinion,in order to achieve the inhibition of false financial report issued by the management,illegally occupy or damage the interests of the company and related purposes.As enron,worldcom,and a series of the outbreak of the financial ugly case,to constantly improve and perfect the corporate governance mechanism,but also establish the status of the audit committee in corporate governance mechanism,and constantly expand the responsibility system of audit committee.Britain's Cadbury report summed up the experience about the research achievements of the audit committee and the United States,said:"the audit committee has proved its own value,and become a necessary committees of the board of directors,audit committee,provide further guarantee for shareholders."With countries such as Britain and America,compared to the audit committee system of listed company of shorter time,the introduction of the audit committee system in China from the set of regulations,applicability to governance effect in the practical work is a big improvement and perfect space,need regulators,academics to positive thinking,in-depth study hard.Our country existing research mainly focused on the effect of the establishment of audit committee,governance,influence factors,the audit committee characteristics and quality of financial reporting,the relationship between the external audit research.Although almost all of China's Shanghai and shenzhen two city have set up the audit committee of listed companies,but the performance of the audit committee,whether governance responsibilities seriously,can play its governance role,this is the hot topic in the high-profile.Therefore should be combined with our unique system background,the mature experience of Britain and the United States and other developed countries for reference,choose the empirical evidence from Chinese listed companies for the implementation of the audit committee responsibilities,more detailed research on the issues such as governance effect,in order to achieve mastery of the audit committee of listed companies in our country governance responsibilities for the implementation of the present situation,discover influence its governance information disclosure,the key factors for the effect of governance,to the audit committee can provide empirical evidence and effective governance improvement direction.This article attempts from the perspective of the audit committee governance information disclosure to explore its governance effect.Due to restrictions in terms of the data acquisition,this paper only consider the audit committee on the management of financial information disclosure and internal control defects effect.The reason is mainly based on the following two points:on the one hand,in the perspective of the audit committee governance information disclosure of financial information disclosure management study,because in our country must be in the annual report of listed companies in a particular section of the audit committee in the rite of disclosure,the role and information reflects both the implementation of the audit committee duties,and the work summary and report to management.Audit committee personally readme information of role has more accuracy,reliability,etc.,this point of view,the paper summarizes and analyzes the governance effect believe more real and useful results.But from the audit committee governance information disclosure content analysis in our country,the responsibility is mainly concentrated in the governance of financial information and disclosure,as a result,this paper attempts to test the audit committee in governance report,the general situation of the information disclosed and whether disclosure since the internal control is relation with the quality of accounting information disclosure,to consider the audit committee on financial governance effect of information disclosure.On the other hand,in the perspective of the audit committee governance information disclosure of internal control defects management are studied.For theoretical and practical circles in recent years our country listed company pay much attention to construction of internal control,internal control in the system specification,the division of responsibilities,such as information disclosure aspects gradually towards standardization,systematization,2008,our country is pointed out in the enterprise internal control basic norms,and control of internal governance is the part of the audit committee responsibilities,however,the audit committee in the practical work of the internal control construction can play a role of its governance,audit committee,management role and internal control information disclosure should disclosure management responsibilities if really can reach the effect of governance,internal control,which is in urgent need of research problems.This article in view of the audit committee governance information disclosure,analyze and study the governance effect for the construction and development of the audit committee of listed companies in China to provide empirical evidence,to the audit committee can better governance responsibilities,give play to the role of governance,and provide improvement suggestion to strengthen the external supervision.The study is comprised of nine chapters as followed:Chapter 1 mainly introduces current auditing background and research necessities.It provides framework and methodology for study.In addition,relevant concepts,outcome contribution and sub contents are also introduced in the chapter.To summarize domestic and foreign research deficiencies,Chapter 2 focuses on general literature discussion regarding audit committee governance factors and corresponding effects and current research status.Complementary discussion about those deficiencies is followed in subsequent chapters along with theoretical analysis and empirical study.Chapter 3 reviews audit committee governance theory,asymmetric information theory and the theory of corporate governance,then applies to the audit committee and stakeholder respectively.The balance function of the audit committee in corporate governance for asymmetry is analyzed.Chapter 4 starts with constitutional background,mainly from the United States and the evolution of the audit committee system in China.Statutory duty of audit committee is analyzed and then their duty of care is evaluated through company disclosure.Finally,company internal control procedure and information disclosing are evaluated.Chapter 5 selects 2010 to 2013 Shanghai and Shenzhen main board listed companies as research samples to find out association that between audit committee characteristics and information disclosure,and correlation between audit committee characteristics and internal control attention to test its governance.The chapter put forward research hypothesis,design that proved through statistics analyzing of main variables.Robust testing results are concluded in the chapter.Viewing from complementary perspective of internal control deficit that under the governance of audit committee.Chapter 6 select 2010 to 2013,the Shanghai and shenzhen main board listed companies as research samples,respectively from the audit committee characteristics and whether there is a defect,the audit committee characteristics and internal control internal control defects rectification of these two aspects to test its governance.First put forward the research hypothesis,research design,the second for the main variables to descriptive statistics analysis,correlation analysis and regression analysis,finally,this chapter research conclusion is reliable for robustness test.Chapter 7,based on the audit committee,management information of financial information disclosure management research.This chapter select 2010 to 2013,the Shanghai and shenzhen main board listed companies as research samples,respectively from the audit committee governance information disclosure should relation with the quality of accounting information disclosure,the audit committee governance information disclosure since the relationship between internal control and the quality of financial information disclosure of the two ways to verify its governance.First put forward the research hypothesis,research design,the second for the main variables to descriptive statistics analysis,correlation analysis and regression analysis,finally,this chapter research conclusion is reliable for robustness test.Chapter 8,based on the audit committee,management information of internal control defects management research.This chapter select 2010 to 2013,the Shanghai and shenzhen main board listed companies as research samples,respectively from the audit governance information disclosure of the relationship between general and defects of internal control,audit committee,governance information disclosure since the two aspects of the relationship between internal control and internal control defects to verify its governance.First put forward the research hypothesis,research design,the second for the main variables to descriptive statistics analysis,correlation analysis and regression analysis,finally,this chapter research conclusion is reliable for robustness test.Chapter 9 summarizes the research,and according to the results of empirical research,points out improvement suggestion.Drawbacks and research limitation of the paper are also stated out in the chapter to pave the way for future research direction.The major conclusions and findings in this study include:(1)The audit committee staff have comply with the provisions of the regulatory departments in our country and requirements of the audit committee of listed companies in our country are roughly consists of three people,including two independent directors,a financial professional,there are a few all audit committee composed of independent directors of listed companies.(2)The audit committee responsibilities need to improve.Because from this article related to the audit committee since the analysis of the situation,at present our country listed company's audit committee responsibilities in the related standards,regulations and the actual execution process is mainly for the supervision of the financial report,communication and coordination aspects of external audit.The present situation and the audit committee system of listed companies in China implement time later on,at the beginning of the implementation of the system,really not easy to define the area of responsibility of the audit committee,the content of too wide,too much,or you will catch,everything all loose or don't know where to start to carry out specific work.,however,the audit committee system of listed companies in our country have already implemented more than 10 years of time,should consider from the run time has passed initial,the audit committee of listed companies in the work and related work experience,the problems in the regulatory aspects of the supervision of the evidence,etc.,can make the summary and the corresponding improvement,push the audit committee system to mature and perfect stage.Besides,the audit committee system of listed company of the international advanced experience and development trend is in constant exploration and the expansion of the scope and content of the audit committee responsibilities.Number of listed companies in our country from the listed include cross an increase in the number of listed companies,the public section of the whole sample,complicate and demand change of the company,to the audit committee responsibilities need to be more rich,the attention and supervise the company to the risks and responsibilities defined pay attention to the unity of the mandatory and flexibility.In addition,the audit committee should make good use of internal audit work,make its enrichment work assistant,and improve the efficiency and effectiveness of management work.(3)The audit committee since the disclosure remains to be improved and perfected,from this article related to the audit committee since the information disclosure status quo and analysis of the empirical test results,the audit committee since the information disclosure of listed companies in China at present not enough specification,especially for the number of audit committee meeting and conference content information,disclose the number of companies are very low.And,according to the empirical data this paper accounts for about 60%of the sample companies of the audit committee since the information disclosure in detail,while the index has more than half,but 40%of the sample companies are very brief disclosure of the audit committee takes office information,this brief level is only a word or a short period of words to make the disclosure of information is so important.And this takes office information is the key to reflect the specific working state audit committee evidence,is missing or incomplete disclosure would cause people to work on as the governance of the audit committee the concerns of the actual situation.Audit committee need supervision and review financial reporting and internal control self assessment report,and its own governance work report disclosure quality is not high,causes the work attitude and the lack of convincing result.In addition,in this paper,the empirical data shows that only accounts for about 40%of the sample firms in the audit committee of role report disclose the internal control management responsibilities,this index is not more than half,on the one hand may be internal control governance responsibilities on audit committee,not really,and therefore not to disclose in the report,on the other hand may be internal control governance responsibilities on the audit committee,but not in the report of the disclosure.If it is the first possibility,says the audit committee responsibilities performance does not reach the designated position,if it is the second possibility,the audit committee information disclosure quality closes nevertheless.And it also reflects the regulators to strengthen supervision and inspection,and shall set out to modify and perfect governance information disclosure rules,related to the audit committee to make it clearer and detailed,operable.(4)The audit committee need to strengthen the duties of internal control governance,as described above the relevant standards and norms of our country clearly define the audit committee responsibilities include management of internal control.In this paper,empirical data also show the size of the audit committee,independent,professional and diligent degree defect about the existence of the internal control and rectification situation have been affected.The proportion of internal control defects in the sample company accounts for about a quarter,the number is not less,this may indicate that the audit committee is to perform the duties of the supervision and internal control,the requirements in the company internal control evaluation report truthfully disclosure of internal control defects;Sample accounted for about 60%of the proportion of company internal control defects rectification,not according to the proportion of defects with rectification is not small,if there is a internal control defects,didn't get timely and accurate rectification,is bound to appear some control loopholes or weakness,caused the company complete safely in assets,the effects of operational efficiency,legal compliance,strategic goals,and even the value of the company can't get on schedule.The audit committee in terms of definition and actual role and responsibilities,or from the practical experience evidence analysis of listed companies in China,it should strengthen the internal control management,in order to make internal control to reduce or eliminate the defects as soon as possible,do pay attention to defects rectification afterwards,in order to increase the effectiveness of internal control.Contribution of this study lies in the following aspects:First,the relevant domestic audit committee,management research in the literature,much to the audit committee set up,the characteristics of financial reporting information quality,the influence of external audit work,such as the effect of Angle of view to measure the governance of the audit committee.Based on the audit committee,management of audit committee in the view of the information disclosure management effect is studied,the study of this problem using a new Angle of view,has a certain groundbreaking,so as to further perfect the study of the audit committee governance.Second,based on the background of system in China,listed companies must disclose in its annual report,the management of the audit committee report,the management report is the summary of the audit committee,management responsibilities and reporting,reflect the current state of the audit committee,management work is the most real and reliable evidence,but the current domestic lack of attention to such information,in this paper,seize the opportunity to summarize the management of the audit committee report and analysis,is helpful to understand the role and status of the audit committee,and master the governance role play,to reform and perfect the governance structure of listed companies to provide empirical evidence.Third,by the audit committee characteristics on its management information disclosure,studies the influence of internal control defects,these can help us find the audit committee of the empirical testing in what kind of characteristics,its governance information disclosure quality is higher,the internal control of governance effect is better.The introduction of the audit committee in the study design should disclose started their internal control situation of governance information disclosure,internal control defects rectification,such as variables,and combined with China's reality and elaborate design,this is also in this paper,a point.Fourth,this paper uses empirical research method to verify the audit committee,the governance effect of governance information disclosure on the one hand,the audit committee should disclose the role and the relationship between internal control and financial disclosure management is studied,on the other hand,the audit committee governance information disclosure should disclose started to study the relationship between internal control and internal control defects.These empirical test can provide both the audit committee real governance responsibilities is consistent with the relevant rules of evidence,and to provide evidence of the audit committee governance information disclosure quality.This article research results will provide a guide to the audit committee in corporate governance in the direction of the future development,explore ways of the audit committee to play a role in improving governance and strengthening and perfecting the information disclosure quality of the audit committee.Therefore,in terms of research ideas,research content and the innovation of this article.
Keywords/Search Tags:Audit Committee Governance, Audit Committee Characteristic, Governance Disclosure, Financial Information Disclosure, Internal Control Defect
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