The Relationship Between Corporate Internal Governance And Audit Fee

Audit fee is an essential link of the demand and supply in the audit market. The excessively low level audit fee can cause reduce the audit quality, but the high audit fee will increase shareholder's unnecessary burden. In the year of 2001, public companies in China were requested to throw daylight on remuneration of auditors. Then audit charge becomes public and the studies on audit charge begin. As more attention on corporate governance is paid, more scholars treat corporate governance as an important factor on audit charge.In this paper, on the basis of studies on the audit fee, firstly literature review on the relationship between corporate internal governance, the audit committee, internal audit and the audit fee; Then propose the research hypotheses, collect the 2967 Chinese public company disclosing external audit fees between 2007 and 2009 as research samples, establish the suitable for corporate internal governance factors and audit fee multiple linear regression model, and do descriptive statistics, correlation analysis, multiple linear regression analysis; Next select 205 listed companies in 2007 as a sample and do further empirical analysis research on relationship between internal audit and audit fee; Finally summarize conclusions and put forward advice.The results revealed:(1) if the government as a listed company's controlling shareholders, the company's audit fee is often lower than the others. (2) if the listed company has an audit committee, the company's audit fee is often lower than the others. (3) if the listed company's internal audit department's independence and objectivity, professional competence and the contribution to the financial statements is higher, then the quality of the internal audit in listed companies is higher, and the audit fee is lower.