Research On Effects Of Audit Fees By Board Characteristics

As we know, independent audit arose from the separation of ownership andmanagement rights, which supervisory agents in the form of and which is theimportant mechanism of external supervision and guarantee. In addition, the auditfees reflect the price which the accountant firms pay for related professional services,which reflect the value of audit service to some extent. We know, high quality auditservices will require higher audit fees, which have positive relation between them. Inorder to ensure the quality of audit service, we should establish reasonable standard ofaudit fees to prevent the adverse effects caused by improper competition. In order tosolve this problem, foreign scholars have been carried out empirical research activelyin the80’s of the last century. In recent years, the scholars of our country also start topay attention to the problem of audit fees standard. China Securities RegulatoryCommission required that listing corporation need to disclosure audit fees in theannual report from2002, Which is an opportunity to carry out empirical research onthe audit fees for Chinese scholars.This paper is based on the perspective of the audited units, according to theauditing demand theory, from the perspective of audit demand perspective, to researchon the effects of board characteristics on audit fees, which is different from before.The majority of existing research in our country is starting from the angleof accounting firms,research review board characteristics influence audit fees. Thispaper analyzes the feasibility of using audit demand outlook from theoreticallyand practically in the selection of China’s Shanghai and Shenzhen A shares of listingCorporation data as a basis for the research object. The different angle of view andselect the data object based on different reasons, led to quite different about theconclusion of our current research.This paper selects the Shanghai and Shenzhen A shares of listing Corporationdata of2008-2013as the study sample, and based on the relevant theoretical basis andanalysis on the research achievements of predecessors, then put forward the sevenhypotheses of board characteristics which effects on audit fees, and the empiricalresults support the hypothesis. The conclusions of this study are as follows: there is a significant positive correlation among the size of the board of directors, boardindependence, board of directors remuneration, board of directors shareholding ratio,the frequency of board meetings and audit fees, and there is a significant negativecorrelation between board leadership structure and audit fees, and there is nosignificant correlation between the "four committees" perfect degree and audit fees.Finally, according to the research conclusion, this paper give some suggestions.