A Study Of The Relationship Of Audit Committee Characteristics,Real Earnings Management And Audit Fees

In recent years, the audit committee system of listed companies becomes more and more perfect, the supervision of managers’ behaviors becomes more and more strict, but at the same time, the means of earnings manipulation by managers is becoming more and more deceptive and concealment.The existence of the audit committee and the real earnings management is bound to affect the quality of listed companies’ financial reports, and then have some impact on the behavior of the external auditors.So, will the audit fees charged by external auditors be affected by the characteristics of listed company’s audit committee and the degree of real earnings management activities ?In order to answer this question, on the basis of the literature review,the theoretical analysis and relevant assumptions made,the selection of 460 samples of China’s Shanghai A-share of manufacturing in 2013 is regarded as the study of listed companies in this paper.In the paper,the explained variable is the natural logarithm of audit fees.Explanatory variables are audit committee’s independence, professionalism, diligence, whether there are female members, whether there are members of the executive and the overall index and three individual index which reflect the degree of real earnings management.This paper expands the measurement methods of earnings management, and multi-faceted tests the efficiency of the audit committee in China.Using SPSS statistical software to do multiple regression analysis, this paper draws the following conclusions:(1)The independence and diligence of the audit committee is significantly correlated to audit fees;(2)The audit committee has female members and has members of the executive are significantly negatively related to audit fees;(3)professionalism of the audit committee is no significantly related to audit fees;(4) Real earnings management is significantly positively related to audit fees,and the abnormal production costs is significantly related to audit fees, the abnormal period costs is significantly negative correlated to audit fees, and abnormal cash flow from operations is no significant correlates to audit fees.