An Empirical Study On The Effects Of Corporate Governance To Audit Qulity

The audit service of Certified Public Accountants is a kind of commodities with strong social credibility, and audit service with high quality can keep the the auditees from manipulating the surplus on the financial report and will eventually improve the confidence of investors to the capital market. However, in recent years, we can see the listed company financial fraud, the ineffective supervision of CPA on the behavior of manipulating surplus of the auditees and conspiracy incidents, allowing investors to worry about the quality of audit. Meanwhile, the low quality of audit had negative impact on the career development of the CPA. In order to improve the audit quality, many domestic and foreign scholars started to do a lot of research. The research found that there are many factors ifluncing the quality of audit, such as the scale of the auditing firms, industry expertise, audit term and so on. However, the research about the impact of the corporate governance on the quality of audit has not come to a conclusion. So this article wants to do some research to make some contribution.There are many definitions about corporate governance and audit quality. This article chooses narrow definition of corporate governance, which is about the responsibility of the institutional arrangements of shareholders, directors and managers power. This article holds that the audit quality can be defined as the joint probability of the probability to discover the misstatement and the probability to report the error. The factors influencing the quality of audit are divided into two categories, namely, independence and competence. In the part of theory, this article analyzes the part of corporate governance on auditor independence and competence. Then there is an empirical research to test and vetify the theory aforementioned by using the data of in 2008 and 2009. According to the results of the research, then put forward some suggestions to improve corporate governance and the quality of audit. This article mainly includes six parts:the introduction, the empirical study of theoretical basis, the empirical study design, the empirical analysis and suggestions and conclusions. Among them, the first chapter is introduction, which mainly elaborates the background and significance of the study at home and abroad, the main content and the basic framework, research methods and innovation. The second chapter is about the corporate governance theory and the theory of the audit.The third chapter is about the design of empirical research, including the research hypotheses, the selection of research variables and sample,and the setting of the model.The fourth chapter is about conclution of the empirical research and some reasonable explanations accorting to the empirical conclution.The fifth chapter is about some suggestions ralated to our country's existing problerm of corporate governance and audit quality.The sixth chapter is about the conclution.