A Positive Research On The Relationship Of The Audit Committee And Audit Quality

The audit committee has gained more mature development in developed countries; study of its role playing in the governance mechanism has been supported by the experience data. But audit committee is brought very late in China, there has various factors influencing audit committee to operate its right. The companies which has established the audit committee, whether its supervision can be fully verified? While under the influence of the equity characteristics, the audit committee's effectiveness would affect? These are all worthy of discussion.this paper, based on the study at home and abroad, chooses the data of a-share companies which has established audit committee in 2009 and has disclosure its audit committee's information in its annual report as the research objects, studies the relationship of audit committee and audit quality by regression model, gives some suggestions for improving the roles of the audit committee's supervision in companies.the empirical results in this paper show that the scale of audit committee is bigger, the audit quality is more secure; the independent directors proportion of the audit committee is bigger, the audit quality level is higher; In equity relatively concentrated circumstances, the stakeholders have more demands for the audit committee, they can create a sound environment for audit committee to keeping its independence, then the audit quality has been advanced.Finally, the author combines this paper's empirical conclusions with domestic and foreign theories, and gives the following suggestions for improving the governance of audit committee: create a sound environment; change and cultivate the demanders'concepts, improve demanders'importance to the audit committee.