Impact Of Corporate Governance Structure On The Audit Fees

Corporate governance is through an institutional arrangement to the rational allocation of rights and responsibilities of the relationship between owners and operators.1997 outbreak of the Asian financial crisis to make people aware of the financial system is not perfect, corporate governance has become the focus of global attention. Occurred in 2008 the US subprime mortgage crisis, indicating the existence of some problems in the banking governance. In early 2002, China Securities Regulatory Commission and the State Economic and Trade Commission jointly signed a Decree issued "Corporate Governance Guidelines" so that our corporate governance system construction has taken an important step forward. 2006 Ministry of Finance issued a new auditing standards, clearly CPA to understand the audited entity and the internal control environment, indicating that the national interest requires an external audit of the audited entity’s governance. The purpose of corporate governance is that through a series of system or mechanism to rationalize the relationship between power and responsibility between the owners and operators to ensure that scientific and corporate decision-making, so that fiduciary relationship between economic responsibility and good low-functioning property development and continuation down, and ultimately safeguard the interests of the company parties. The audit control mechanisms as a monitoring mechanism, but also to promote economic responsibility fiduciary relationship can better fulfill its ultimate goal is to provide relevant and reliable information to achieve better corporate governance. China Securities Regulatory Commission promulgated in 2001 the "No.6 public offering of securities of the Company Disclosure Questions and Answers - paid remuneration and disclosure of Certified Public Accountants’ requirements, the need to increase disclosure of listed companies in the financial statements audit fees from next year onwards this information. This provides not only more information for stakeholders, but also for the study of a listed company’s audit provides an important basis.This paper firstly describes the background and significance, etc., through the study of relevant literature at home and abroad to understand the correlation between corporate governance and audit costs between the results. At the same time the related theory analysis, hypothesis, select 2011-2013 Shanghai and Shenzhen A-share listed company data, respectively, descriptive statistics, correlation analysis and multiple regression analysis, the final conclusion and make your own recommendations.According to empirical research the following conclusions: There is a certain correlation between corporate governance CPA and audit fees can observe the governance structure of listed companies to understand the potential risks of the company. Listed companies can reduce financial risk by certain governance, audit costs savings. The company’s stakeholders can understand the relevant information from the company’s audit costs. Finally, the paper suggested that companies should adopt some method to optimize their internal governance structure, while countries should improve policies, and create a fair and effective audit services market.