The Relativity Research Of Audit Committee And Quality Of Accounting Information

Audit committee is an important institutional mechanism in corporate governance. Its original purpose is to have an independent financial governance power to ensure CPA's independence and integrity and reliability of financial statements provided by corporations. In our domestic stock market, nearly half of companies have set up the Audit Committee, at the end of 2006. But the researches of the committee are not enough, especially in the empirical study field. For the reason that our domestic market has its own specialty and different company is not in same situation. In our capital market, can Audit Committee do a good favor for improving quality of financial report? As mention above, this article has test performance of audit committee and discussed the reason which effecting the performance, under the view of Corporate Governance.At the first, I confirm the theory basis of audit committee by the theory of new institutional economics, under the view of normative analysis. Than I describe beginning and development of audit, so I analyze the theory basis of effective and characteristics of audit committee. For proving the result of theory analysis and hypothetical which I ask, I use the relative figure of 244 financial reports, to analyze the performance of audit committee, then discussing the effective factors of it and the impact of effective factors. I use the audit opinion, penalties by CSRC and the change of audit firm to test the performance of audit committee. When I analyze the effective factors of audit committee and the importance of the factors, I use the six indicators to describe how these indicators affect the performance of audit committee. After calculating, the results of empirical analysis have proved that audit committee plays a role in improving quality of financial report. The following statistics has shown that academic qualifications and the knowledge on accounting can be a great useful on quality of financial report. In the other hand, whether get the income from company can't influence the performance of audit committee. At last, I suggest make a further reform of audit committee which base on the statistic.The article has researched the relativity between audit committee and quality of accounting information, with the analysis of research both of domestic and foreign. And then the article has proved the result of theory analysis by empirical study. The result of this research has suggested how to the built the audit committee.