An Empirical Study On The Board Characters And Audit Fees

In recent years, the financial frauds frequent have happened, so the social public becomes lake of confidence to the listed company. In order to prevent financial fraud, listed companies also try a variety of methods, including good corporate governance and high quality external audit service which are the two important methods. Good corporate governance and good system environment can reduce the listed company of the financial fraud risk from inside. External audit services of high quality can reduce the risk of fraud from outside. Implementation of the new audit standard and the enterprise internal control basic regulations also suggests that our country make efforts in this respect. The board of directors as internal supervision and audit services as an external oversight, what is the relationship between them? The research in this area is still rare, so this paper selects the relevant variables of characteristics of board of directors, and tries to do a useful analysis of the relations between characteristics of the board of directors and audit fees. It will be useful for the progress of the board of directors in listed companies and the ability of the company’s internal governance.The article tires to make a useful research analysis of the relation between characteristics of the board of directors and audit fees from the perspective of the demand side of audit. First of all, this article introduces the operation theory of the board of directors, analyzes the factors which affect the audit fees and analyzes the possible influence of characteristics of the board of directors on audit fees. Then, this article put forward the hypothesis on the basis of theoretical analysis, select2990A-share public companies as a sample, and studies the impact by descriptive statistical analysis, correlation analysis and multiple regression analysis. Finally, the main conclusion of the study is:the number of the board, the board independence, number of board meetings and directors’ remuneration are significantly positive related to audit fees; the board of directors shareholding ratio and the board leadership structure are significantly negative related to audit fees; the establishment of four committee have a negative correlation which is not significant with audit fees. In the end we make some suggestions, including maintaining an appropriate board size, setting up a reasonable board leadership structure, enhancing the independence of the board of directors and audit risk awareness of the Certified Public Accountant.