Research On Relationship Between Corporate Governance Structure And Auditing Independence

The global economic rapid development, enterprises are emerging, affecting socialdevelopment in a variety of ways. In recent years, corporate accounting fraud case, thequality of accounting information by the extensive attention of the people from all walksof life, and the quality of accounting information due to the Certified Public Accountant’saudit quality. Certified Public Accountant’s audit quality is often due to the combinedeffect of the professional competence of the certified public accountant and auditorindependence. View from audit failures occurred in recent years, is a certified publicaccountant under pressure from all sides to select listed companies conspired to producethe fake, this also shows that the listed companies in China there is a lack of auditindependence. Audit independence is a Certified Public Accountant, loss of independenceof accountants, even if they have the professional competence also difficult to guaranteethe results of the audit objective and impartial. Audit independence not only by acertified public accountant, and also by the company audit clients feature. Therefore, theneed to strengthen the independence of audit to improve audit practice to improve theirown quality of certified public accountants and external environment, and improve thegovernance structure of listed companies.According to previous scholars, audit independence will be the impact of thecorporate governance structure. The birth of the theory of corporate governance in orderto solve the separation of management and ownership of the company in the developmentprocess, and has formed a mature theoretical system. Due to the late start of thedevelopment of our company, the corporate governance theory is still in its infancy, manygovernance structures are to learn from Western experience. Improve the corporategovernance structure can not be separated from the supervision of the audit, the healthydevelopment of the auditing profession also need the support of the corporate governancestructure. A lot of research on the impact of corporate governance and auditindependence, there are many issues that need to improve. In this paper, based on thetheory of corporate governance, correlation analysis of the GEM corporate governanceand audit independence. Through theoretical analysis and empirical research, analysis ofexisting problems, put forward corresponding recommendations. On the one hand, we need to strengthen the corporate governance structure of the GEM to prevent the negativeimpact on audit independence because the governance structure defects. On the otherhand, the certified public accountants to improve their quality, and promote thedevelopment of audit independence.Paper selected companies listed on GEM data as the study sample; select the sampledata in the last two years,441, and then using a logistic regression model to study thesample, considering the seven explanatory variables and two control variables. Resultsshow that the number of meetings of the unity and the Board of Supervisors of thefrequency of the Board of Directors, senior management stake, and chairman of the board,managers significantly associated with audit independence, control variable asset-liabilityratio and auditor independence significantly correlated remaining variables related toaudit independences not significant. Finally, recommendations to improve the governancestructure, improve the audit appointment system and strengthen the management ofcertified public accountants.