Analysis Of The Relationships Between Audit Committee Characteirsitcs And Disclosure Of Internal Control Deficiencies

The year of2008and2010,China promulgated The Basic Norm of EnterpriseInternal Control and The Supporting Guidelines of Enterprise Internal Control,thistwo legislations build Chinese enterprise internal control frame, also point thedirection. What’s more, supporting guidelines are the important standard for thedefined of internal control deficiencies, and it is enthusiastically supporting theinternal control deficiencies. More and more research has already changed its aimfrom the whole internal control to internal control deficiencies and informationdisclosure. he Basic Norm of Enterprise Internal Control clearly states: AuditCommittee to undertake the review of internal control, supervision and effectiveimplementation of internal control and internal control self-assessment, coordinationof internal control and auditing duties, audit exposed in the internal controldeficiencies, the Commission should be given appropriate disclosure of the attentionthey deserve and supervise enterprises. Studies have shown that, the audit committeesize, independence, professionalism, authority and activity and other characteristics ofthe existence of the supervisory role of the Audit Committee, then, what are thecharacteristics of the Audit Committee are disclosed internal control deficiencies role,in this paper to study the problem.By reading lots of paper about disclosure of internal control deficiencies andaudit committee characteristics,the paper base on the signaling theory andPrincipal-agent theory, sample by the year of2010,main part of Shenzhen A shares,analyze its Internal Control Self-evaluation Report,to research audit committee’seffect on disclosure of internal control deficiencies, build two-dimensional logisticmodel. The results show that the size of the audit committee, independence,professionalism and the chairman of the professional at0.10,0.10,0.01,0.05the level with the internal control deficiencies revealed a significant negative correlation, whilethe authority of the Audit Committee and active and disclosed internal controldeficiencies could not be readily supported. Also verified the company sizes.Ownership concentration, loss, and auditors to change the four control variablesuncovered internal control deficiencies. Study the impact of the internal controldeficiencies, further analysis, internal control deficiencies were divided into theoverall defects and specific defects, design defects and operational defects were alsomade to create, and by regression analysis the characteristics of Audit Committee onthe classification of the types of defects of the impact and degree of audit committee,which is professional for all types of effect of defect size unchanged, andindependence and chairman of the professional for some types of defects have asignificant effect. According to the above conclusions, the audit committee systemarrangement and puts forward related policy suggestions. This study examines thecurrent status of listing Corporation internal control deficiencies disclosure and itsinfluencing factors provided empirical evidence.